General Motors to invest in restructuring its China branch

The U.S. automotive corporation plans to put $5.3–5.6 billion into a major overhaul of its Chinese subsidiary meant to combat failing sales.

Like many other automakers, GM has been facing a steep decline in sales in China after missing the market. No one is going to disclose the full list of reasons, but it’s been obvious that the Western companies have struggled to meet the expectations of the local customer base. Some products came out downright wrong, and others were an example of “too little, too late”.

What specific measures GM plans to take in China is also unknown. We suspect that underperforming cars may get axed from production and several factories may have to shut down.