*This content was translated by AI.
General Motors (GM) has agreed to extend its joint venture contract with Shanghai Automotive Industry Corporation (SAIC) through 2047, a 20-year extension, and will cease new vehicle sales under the Chevrolet brand in the Chinese market. The reason is the rapid rise of local Chinese brands.
Accordingly, GM has begun restructuring its portfolio, including the Chevrolet brand. However, it is not withdrawing entirely from China's business structure. This comprehensive overhaul retains premium brands Buick and Cadillac while phasing out others. This strategy mirrors that previously adopted by European brands such as Jaguar Land Rover.
Launched in 2005 to target China's mass-market sales segment, the Chevrolet brand will gradually end domestic sales in China under this restructuring. However, production lines at local factories will remain operational. GM plans to continue producing Chevrolet models through its joint ventures SAIC-GM and SAIC-GM-Wuling, designating these facilities as export hubs targeting global markets including the Middle East, Africa, South America, Mexico, and Asia-Pacific regions. Additionally, GM will continue providing parts supply and after-sales service (A/S) support to existing Chevrolet vehicle owners in China.
GM's sales volume in China peaked at approximately 3.9 million units annually in 2016 but declined by 51% to around 1.9 million units in 2025 due to electrification offensives by local Chinese brands such as BYD. As profitability deteriorated, GM has implemented rigorous restructuring measures since 2024, including non-cash asset impairments exceeding $5 billion (approximately 6.8 trillion won), factory closures, workforce reductions, and model lineups adjustments.
As a result of these intensive structural improvements, GM's China operations have turned profitable for two consecutive years, recording an equity-method profit of $248 million in the first half of 2026 ($83 million in the second quarter). The SAIC-GM joint venture plans to launch at least 30 new electric vehicles and HYBE-led models by 2030. In particular, it aims to accelerate global exports by positioning locally developed electrified Buick brands such as the 'Electra' series as core strategic models. However, due to the impact of U.S.-China trade tariffs and technology regulation policies, exports of China-produced vehicles to the U.S. market will not be pursued.
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*This content was translated by AI.
