(Yicai) Dec. 5 -- General Motors reportedly said its Chinese business remains a valuable asset for the present and future after reports that it plans a restructuring, while also highlighting the US auto giant's joint venture tie-up with China's SAIC Group is closer than ever, aiming to achieve profitability and sustainable development.

GM did not confirm or deny the restructuring plans but said it takes measures to reduce inventory, produce according to demand, protect its pricing structure, and lower fixed costs to meet long-term development goals in China, The Paper reported, citing the Michigan-based firm. These actions have led to continuous growth in sales and market share, it added.

GM's sales and market share in China increased in the third quarter from the prior one, with new energy vehicle sales, including all-electric and plug-in hybrid models, exceeding those of traditional fuel autos for the first time, according to the company. Sales rose for the fifth consecutive month in November, it added.

Inventories at Chinese dealers have been cut by more than half since the beginning of this year, helping GM better manage its pricing and cost structure, the carmaker pointed out.

In a filing to the US Securities and Exchange Commission yesterday, GM said that due to expectations of new business and restructuring actions suggested by SAIC-GM to address market challenges, some of its investments in China have been other-than-temporary impairment, so it will make a significant cut to its equity in the JV.

GM expects that the restructuring costs of SAIC-GM may reach USD2.7 billion, including impairment charges due to the closure of some factories and product portfolio optimization, with most of these charges to be included in the quarter ending Dec. 31.

Editor: Martin Kadiev