According to Zhizhong Finance APP, General Motors (GM.US) will incur over $5 billion in costs and write-downs due to its struggling operations in china. General Motors stated in a securities filing on Wednesday that it expects to write down the value of its joint venture business in china by $2.9 billion, and the company will also incur another $2.7 billion in costs due to factory closures and restructuring of its operations in china.

According to the documents submitted by General Motors, most non-cash items will be recognized in the fourth quarter. This write-down and incurred costs will not affect General Motors' adjusted earnings.

General Motors is trying to salvage its once-profitable business in the world's largest auto market. In the fiercely competitive chinese auto market, General Motors' operations in china lost $0.347 billion in the first nine months of this year, while in 2017, the company's operations in china achieved a profit of $2 billion.

Another document shows that prior to the announcement of the write-down on Wednesday, General Motors valued its stake in the joint venture with SAIC at $6.4 billion as of the end of 2023. The write-down of its joint venture business in china indicates that the company acknowledges that it can no longer generate profits in china as it did before. Additionally, the $2.7 billion in costs is related to General Motors' plans to restructure its joint venture in china, which includes closing factories and cutting unprofitable models.

General Motors spokesperson Jim Cain stated that despite difficulties in the chinese market, General Motors and SAIC believe that the joint venture can return to profitability. He stated that the company expects these operations to be able to move forward without additional capital investment from General Motors.