Investing.com — SAIC Motor Corp., the Chinese collaborator of General Motors Co (NYSE:GM)., has announced that its preliminary profit for 2024 could see a drop as extreme as 90%. This drastic decline is attributed to a writedown of the American automaker’s joint venture in China, coupled with an intense price war.
The corporation’s net income for the year ending on December 31, 2024, could range between 1.5 billion yuan ($207 million) and 1.9 billion yuan. This represents a decrease of 87% to 90% compared to the income of 2023, according to SAIC’s exchange filing on Friday.
When excluding non-recurring gains, the company’s financial situation appears even more dire. Without these one-time boosts, SAIC Motor Corp. would have plunged into a deficit, facing a potential loss of up to 6 billion yuan.
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