This Detroit Auto Stock Has Soared, but There's Still One Nagging Problem: China

General Motors has outpaced Ford and Stellantis on strong cash flow and aggressive buyback execution, but its China operations have flipped from profit center to bleeding liability. The automaker has absorbed more than $5 billion in charges and restructuring costs since 2024 as its China sales collapsed 20% in the second quarter of 2026.

The deterioration marks a sharp reversal for GM, which once counted China as a core earnings engine. The company is now racing to pivot with fresh electric-vehicle initiatives and plans to develop the country into an export hub, but execution risk looms large. A critical joint-venture contract expires in 2027, adding a firm deadline to the turnaround timeline.

GM's relative strength versus domestic rivals has been driven by capital allocation—share buybacks and disciplined cash management—but the China drag threatens to offset those gains if the losses continue to widen. The automaker faces a narrow window to stabilize the business before the 2027 expiration forces a strategic decision on its partnership structure.