General Motors to record over $5 billion in non-cash charges for China joint venture

General Motors (GM) informed shareholders on Wednesday that it would take two non-cash charges totaling more than $5 billion related to its joint venture in China.

GM expects the charge for restructuring costs to be $2.6 to $2.9 billion and the charge for reduced joint-venture value to be $2.7 billion, News.Az reports, citing Reuters.

The U.S. automaker's shares were down 2.7% before the bell.

GM partners with SAIC Motors in China to build Buick, Chevrolet and Cadillac vehicles.

The company's board of directors determined that the non-cash charges were necessary "in light of the finalization of a new business forecast and certain restructuring actions" with the joint venture, according to a company filing.

GM has not disclosed details of the restructuring.

Most of the charges will be recorded in the company's fourth-quarter earnings, reducing net income but not adjusted results, according to a company spokesperson.

CEO Mary Barra has been transforming GM's operations in China as the former profit engine slipped to a loss in the last year. Barra told investors in October that they would see improvements from this effort by the end of the year, saying there would be "a significant reduction in dealer inventory and modest improvements in sales and share."

The automaker lost about $350 million in the region in the first three quarters of this year.

News.Az