Boston, MA 08/14/2014 (wallstreetpr) –General Motors Company (NYSE:GM) becomes the latest major U.S. company to report its challenges in China, where state authorities are probing its business practice in the country amid widespread investigation of foreign companies.
Shares of GM were up 0.74% on Wednesday to $33.95. However, the shares are down almost 17% this year, mainly from the pressure that the company is facing because of the ongoing vehicle recall. General Motors Company (NYSE:GM)’s massive recall has reached several millions and captured a number brands.
In China, the leading U.S. automaker said it was contacted by the Chinese ant-monopoly regulators who sought to look into its joint venture with the state-run Shanghai Automotive Industries Corp. The joint venture is known as Shanghai General Motors and sells a number of its vehicle brands such as Chevrolet, Cadillac and Buick.
Probing Foreign Players
Chinese regulators have been looking into business practice of foreign companies, mostly tech and auto companies in efforts to regulate prices and also ensure that consumers get the value for their money. Cisco Systems, Inc. (NASDAQ:CSCO) and QUALCOMM, Inc. (NASDAQ:QCOM) are some of the other major U.S. companies that are having regulatory issues in China to the point that the same has or could adversely affected their financial health.
Big Plans For China
On its part, General Motors Company (NYSE:GM) maintains that its dealings in China are pure and said that it continues to cooperate with the investigators. The company has big plans for China and other emerging markets as it seeks to boost revenue growth and profits. It intends to launch 60 new or refreshed brands in all its markets between 2014 and 2018 and about 11 new launches in China over the next 5 years.
General Motors Company (NYSE:GM) expects vehicle sales in China to go up 8% this year compared to the previous year. Ford Motor Company (NYSE:G) and Tesla Motors Inc (NASDAQ:TSLA) are some of U.S. automakers that are giving GM a run for its money in the Chinese market.
