A logo at a GM factory in Pennsylvania
The company communicated this change to employees and dealers. The Durant Guild, which focused on importing premium U.S.-manufactured vehicles into the Chinese market, accounted for less than 0.1% of GM’s total sales volume in China. The decision follows what GM described as "significant changes in economic conditions, foreign exchange rates, and a decrease in demand" for imported premium vehicles.
GM China noted: "Due to significant changes to economic conditions, we have decided to restructure The Durant Guild and correspondingly optimize GM China's operations." The company added that it is assessing new possibilities for premium imports, depending on future market conditions, customer interest, and policy developments.
Despite the adjustment in its import strategy, GM emphasized its continued commitment to the Chinese market. The company reported robust performance in China during the first quarter of 2025, particularly in the electric and hybrid vehicle segments. GM and its joint ventures delivered over 442,000 units in China during the quarter, recording positive year-on-year growth and expanding market share for the third consecutive quarter.
"We will continue to strengthen our core business and drive the success of our joint ventures in China to deliver sustainable profitability now and for the future," GM told.
Analysts have linked GM's restructuring decision to the impact of trade policies. He Weiwen, a senior fellow at the Center for China and Globalization, noted that rising U.S. tariffs have prompted countermeasures, which have increased the cost of American imports in overseas markets. This, in turn, has led consumers to opt for more competitively priced alternatives, affecting the export performance of U.S. carmakers.
In a broader context, GM recently adjusted its annual profit forecast, citing potential tariff-related costs that could reach up to $5 billion in 2025, according to the Associated Press. Similarly, Ford Motor announced the suspension of its 2025 financial guidance due to an anticipated $2.5 billion impact from tariffs, CNBC reported earlier this month.
Meanwhile, China’s Ministry of Commerce (MOFCOM) expressed hopes for improved economic collaboration. A MOFCOM spokesperson stated on May 12 that China looks forward to working with the U.S. following the China-U.S. Economic and Trade Meeting in Geneva, with the aim of enhancing cooperation and fostering stable, mutually beneficial bilateral trade relations.
This development underscores the importance of adaptability for multinational companies operating in a shifting global trade environment, while also highlighting the significance of policy clarity and cooperation in maintaining steady international economic relations.
