General Motors Warns of $600 Million Russia Write Off
Automaker quantifies impact if Russia seizes its assets or it’s forced to halt business permanently.
April 27, 2022
General Motors (GM) operates what it calls a “small import business” in Russia, selling GM-badged vehicles into Russia through a partner in Uzbekistan. The company suspended exports into Russia and instructed its Russian sales company to cease selling vehicles within Russia in February. Though the company says it’s profitability in Russia is insignificant, halting business permanently would result in a significant charge.
In its latest 10-Q, GM quantified the financial impact should Russia seize its assets or if the company if it’s unable to restart Russian operations:
“In the event we were to lose control of our Russian sales company or are otherwise unable to operate again in Russia, we would expect to record a non-cash charge of approximately $0.6 billion to write off our investment and release accumulated translation losses.”
GM also disclosed it would not count any such write offs against adjusted EBIT or earnings per share (EPS).
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