GM closing a China plant

General Motors (GM) says it’s closing the SAIC-GM (Shenyang) Norsom Motors Co (Norsom plant) in Shenyang, Liaoning, China.

A source told Reuters that it’s part of restructuring for GM’s business in China.

The Norsom plant builds cars for the Chinese domestic market and also serves as an engine plant, says GM Authority.

“This likely means the discontinuation of the Buick GL8 Legacy, which is based on the second-generation GL8 that was first introduced in 2010. The current generation, the Buick GL8 Century, is produced at the SAIC-GM Jinquiao plant in Shanghai.”

GM Authority also says the Chevy Tracker is likely to be discontinued in China too since GM chief executive Mary Barra has been emphasising a push toward more profitable, upmarket vehicles from the Durant Guild and the Buick and Cadillac brands in the region.

“The GM Shenyang facility opened in 1992 as Jinbei GM Automotive, a 30/70 joint venture between General Motors and Chinese automaker Jinbei. In 1998, it was restructured as a 50/50 joint venture, and SAIC-GM took it over in 2004,” says GM Authority, adding that “GM’s restructuring efforts and the closure of the Norsom plant are consequences of an ongoing takeover of the Chinese car market by domestic brands that are either owned or heavily subsidised by the Chinese government.

However, GM still sees a business opportunity in the higher end of the market, since the popular domestic offerings are largely on the more affordable side, says GM Authority.

GM says its US$137 million loss in equity income in China for the third quarter of 2024 was driven by intense competition in challenging market conditions, partially mitigated by proactive measures to optimise inventory levels through production control, and that it remains committed to the Chinese market.

In April 2024, the GL8 PHEV and GL8 Hybrid were released, equipped with a plug-in hybrid system which includes a plug-in hybrid electric drive unit by the Pan Asia Technical Automotive Centre, a battery similar to the Ultium, and a 1.5-litre turbocharged hybrid engine.