GM is sliding into the fourth quarter like a teenager who forgot about their midterms (except instead of bad grades, they’re facing a $5 billion bill). While the stock has climbed a respectable 48% this year, today’s news probably has shareholders wondering if they should wash it down with whiskey instead of water.. Here’s the lowdown on what’s going on under the hood.

China used to be GM’s second-largest profit engine (behind the U.S.), but now it’s more of a rusted-out silverado. The company, in a government filing Wednesday, revealed plans to record two non-cash charges totaling nearly $5 billion in its Q4 adjusted pretax earnings. What’s the damage?

First, they’re looking at $2.6–$2.9 billion in restructuring charges. On top of that, there’s another $2.7 billion hit tied to the declining value of their joint venture with SAIC Motor Corp. That’s the financial equivalent of blowing two tires at once, and Wall Street wasn’t thrilled (GM’s stock slid 2.7% in premarket trading on the news).

For starters, GM’s joint venture, Shanghai General Motors, has been on a downhill slide for years. In the third quarter alone, vehicle deliveries fell to 426,000 (down from 542,000 a year ago). Oh, and GM has already racked up $347 million in equity income losses in China this year.

What’s behind the crash-and-burn? Domestic EV champ BYD is out here selling 10 times as many cars as GM, while GM’s models sit on the dealer lot. Throw in stiffer regulations and a pricing war so brutal it makes an episode of Succession look friendly, and you’ve got yourself a bonafide train wreck.

(Source: The New York Times)

GM says it’s making “bold steps” to turn this ship truck around, but the details are kinda like when Trump said he “has concepts of a plan” but didn’t share them with anyone (no matter who you voted for, you know it’s funny). So far, the automaker and its partner SAIC have focused on cutting inventory, launching “new energy vehicles,” and reducing costs (pretty generic plan right?).

“We are close to finalizing our restructuring plan with our partner,” said GM spokesman Jim Cain. He also hinted that results could improve by 2025. 

GM isn’t the only legacy automaker getting bodied in China. Ford’s turning its China ops into an export hub, VW is cozying up to local EV firms, and Nissan is cutting 9,000 jobs because, well, their cars aren’t selling either. The world’s largest auto market has turned into a gladiator pit, and GM’s looking more like a spectator than a contender.

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