GM in China: A Slow Reckoning

by

They speak of markets, of “pillars of profit.” But what does that mean to the man assembling the electric motor, to the woman navigating the crowded streets in a vehicle she can barely afford? For years, General Motors dreamt of China as a second America, a boundless horizon for their machines. They chased that dream, built factories, and promised riches. And for a time, it seemed to work. They sold more cars in Shanghai than in Detroit. A temporary illusion, as all illusions are.

The tide turned, as it always does. The Chinese weren’t content to simply buy. They began to build. To innovate. Their electric vehicles weren’t born of distant boardrooms, but of a need, a hunger for something better, something their own. GM, burdened by legacy and a fondness for expensive metal, stumbled. A billion-dollar charge here, a plant closure there. The cost of waking up. They speak of “restructuring,” but it’s merely the sound of a giant shifting its weight, hoping not to crush those beneath.

The CFO speaks of “structural changes” and “lowering costs.” Fine words. But what of the workers whose livelihoods are adjusted, whose skills are rendered obsolete? The machine cares not for sentiment. GM’s game plan, expensive as it is, is a simple one: to sell fewer, more luxurious vehicles to a shrinking segment of the population. A strategy built on aspiration, not necessity. It’s a gamble, and one that relies on convincing people they need a premium electric car when a perfectly good, affordable option exists.

A Flicker of Progress

There’s talk of growth, of market share. A 2.3% increase in sales. A 22.6% jump in electric vehicle sales. Numbers dance on a page, obscuring the truth. The real question isn’t how many cars they sell, but to whom. Are these vehicles reaching the hands of the working people, or are they destined for the driveways of the privileged few? They boast of nearly a million electric vehicles sold. A substantial number, certainly, but a drop in the vast ocean of China’s automotive needs.

They plan to launch all new products with electric options, built locally. A sensible move, finally. It’s cheaper to build where you sell, a lesson learned late. But local production isn’t a magic bullet. It doesn’t erase the fundamental problem: GM is trying to compete in a market that demands affordability and innovation, while clinging to a business model built on profit margins and prestige.

Loading widget...

The Bitter Harvest

Let’s be clear: China won’t be a second Detroit. The dream of a limitless market, of effortless profits, is dead. But that doesn’t mean GM should abandon the fight. The Chinese market is too large, too advanced to ignore. It’s a proving ground, a crucible where they can either adapt or perish.

More importantly, what GM learns in China will determine its fate at home. The same forces at play – the demand for affordable electric vehicles, the rise of local competition – will soon be felt on American soil. The Chinese automakers are coming, and they will offer vehicles that are both technologically advanced and reasonably priced. GM must learn to compete, not by offering luxury, but by offering value. It’s a difficult lesson for a company accustomed to dominance, but one they must learn if they hope to survive. The future isn’t about building bigger cars; it’s about building a sustainable future for everyone, not just the shareholders.

Read More

2026-02-14 16:12