GM Takes $5B Hit in China, $2M Treasure Hunt

This Thursday morning, we’re covering GM having over $5B in non-cash charges with its China operations and how a crypto millionaire is launching a unique $2M treasure hunt.

Show Notes with links:

• General Motors announced over $5 billion in non-cash charges tied to its struggling operations in China, reflecting the immense challenges foreign automakers face in the world’s largest auto market.
  • GM faces charges of $2.6-$2.9 billion for restructuring and $2.7 billion for reduced value in its joint-venture with SAIC.
  • The company’s Chinese operations saw a 59% sales drop through November, selling 371,000 units compared to BYD’s 3.7 million.
  • GM isn’t alone in facing challenges in China—Volkswagen has seen declining sales, Nissan is cutting 9,000 jobs, and Ford is shifting focus to vehicle exports as competition from local automakers intensifies.
  • CEO Mary Barra has described China as "untenable for many corporations."
  • Some experts are concerned that the Chinese market may not be viable for Western automakers, with Bernstein analysts saying: “Headwinds in China remain too great to create meaningful profitability.”

• Entrepreneur Jon Collins-Black has launched a nationwide treasure hunt, hiding five chests worth $2 million across the U.S. Clues are embedded in his new book, There’s Treasure Inside.
  • Collins-Black is a Bitcoin millionaire with a passion for unique collections.
  • The treasure includes items like Bitcoin, shipwreck bounty, rare Pokémon cards, and historical artifacts from figures like George Washington and Amelia Earhart.
  • Each chest is custom-made by a blacksmith, with one larger chest holding the "lion’s share" of riches.
  • Over five years of planning went into this project, including expert consultation and detailed documentation of the treasures.
    
    

Hosts: Paul J Daly and Kyle Mountsier

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Transcript

Kyle Mountsier: 0:00

Good morning. Thursday, December 5, I'm hanging out with Michael Cirillo. We're talking about GM taking a $5 billion hit and a $2 million treasure hunt. We're talking money this morning. The people really want to know who

Unknown: 0:16

I is and who I be. Oh, man,

Kyle Mountsier: 0:18

money my we're talking lots of money, lots of money, lots of money. Hey, just before we get into it this morning, you gotta go to asotu.com you gotta scroll down just a little bit and make sure you catch our webinar tomorrow with stream companies about building your 2025 advertising strategy. Since we're talking about money, don't waste your money in 2025 you know what I mean, Cirillo,

Michael Cirillo: 0:42

don't just, don't waste your money. Don't waste you and I that we're just talking about how much money gets wasted. Oh,

Kyle Mountsier: 0:49

I you're going to get podcast topic that you're not even going to want to get to this morning, because we're just, we're just like, we're happy just throwing money into the air and seeing if it catches on fire. Yay. It's all followed down. It's all falling down. Hey. Speaking of money catching on fire, segway. Whoops, General Motors announced over $5 billion in non cash charges tied to its struggling operations in China, reflecting the immense challenges foreign automakers face in the world's largest automaker so GM is facing charges of 2.6 to $2.9 billion just for restructuring, and then another 2.7 billion for reduced value in its joint venture with SAIC, the company's Chinese operation saw 59% sales dropped through November, selling 371,000 units compared to by these 3.7 million. They're obviously now alone in China. Volkswagen has been declining in sales. Nissan is cutting 9000 jobs, and Ford is shifting vehicles, shifting focus to vehicle as sports as competition from local automakers intensifies. Mary Barra, CEO of GM also described China as being, quote, untenable for many corporations. Obviously, a lot of experts are talking about, you know, the Western society not being able to be successful in China. With Bernstein analysts saying headwinds in China remain too great to create meaningful profit. Profitability changes in the win, ooh,

Michael Cirillo: 2:24

I mean, but you think reading between the lines here too, it also has something to do with the fact that there's about 178 zillion EV auto makers in China that are building some

Kyle Mountsier: 2:38

really nice cars, building really nice cars with massive government subsidies. And, you know, that's and, you know, what's interesting is, like, we get all up in arms about, you know, whether or not those automakers are going to be able to come to the US and all of that. And I think some of the changes in the air of like, hey, look, we're going to put pressure on these vehicles not coming into the US, right? That's happening in the same way for, you know, Eastern manufacturing as well. So, you know, the the battle for worldwide impact from for any OEM is going to become, really, it's going to become tenuous over the next couple years. I think

Unknown: 3:22

about to get interesting. About to get interesting. Speaking of saying interesting stuff, segway time,

Kyle Mountsier: 3:30

we're moving fast this morning, because, you know, your boy got into the show late. And this is live. It's live, everybody. We don't mess around. Hey, entrepreneur John Collins, Black has launched a nationwide treasure hunt, hiding five chests worth $2 million across the US. Clues are embedded in his new book. There's treasure inside Collins, black is a Bitcoin millionaire with a passion for unique collections. All of the treasures in the five chests include items like Bitcoin, shipwreck bounty, rare Pokemon cards, historical artifacts from figures like George Washington and Amelia Earhart. Each chest is custom made by a blacksmith with one larger, larger chest holding these lions share of riches. Obviously, a ton of planning went into the project over five years, including expert consultation, detailed documentation of the treasures, all the whole nine yards, crazy book. This is just cool. This is fun. This

Michael Cirillo: 4:30

is, this is Mr. Beast. This is, like, you know, this is something Mr. Beast would do. I think it's actually brilliant, because this isn't a strategy. I mean, okay, let's break it down to a smaller scale. But this is actually something dealerships could pull off in their communities. Doesn't have to be big chests and all this and that. But, I mean, some of them, some dealerships, you and I know already lean into doing community engagement things like this. I think this is brilliant marketing, because it's outside of the box. Still. Little novelty around it, and it's, and really, like, it's for something as simple as getting people to buy a book. Yep, exactly,

Kyle Mountsier: 5:09

well, and I think, and I've seen dealers take part in some of these things, like, just, honestly, similar treasure hunts around your city, right? And the dealers dropping social media posts, and maybe there's discounts, or maybe there's, you know, little trinkets or gifts that are around the city, but it can create a social media buzz. There can be reasons to engage with, you know, I think about the idea of, like, how do I get 15 businesses to engage in this with me that now are attached with me as the center of all of the communication, so yeah, out on social, in the stores, you know, maybe even the gifts and prizes are tied to the different businesses you think you talk about being the center of community. That's being the center of community.

Michael Cirillo: 5:53

And for those early adopters, take this story, drop it into a GPT, tell it about your dealership, and say, how could we do this at a smaller scale

Kyle Mountsier: 6:05

on now for

Michael Cirillo: 6:06

ourselves? Like it's so like, that's what I love about living today. It's so accessible. What's weird, though, is like, I would be dude. I would be I'd be so pissed if I open it up and I like, have George Washington's teeth, and that's what I want. You know what I mean, like, what is the George Washington relic that's going to be in there? Because I don't know if right? Just go look it up today as your your congratulatory gift from MC a picture of George Washington's teeth. And just try and forget about it. See what. Try and

Kyle Mountsier: 6:37

forget about that. Think about all the gold that he's put in there. Hey, there's gold sitting in these walls. This is why we bring it to you every single morning. Use chatGPT, ideate off of what other cool people are doing? Serve people in your community. Love people in your stories. Go sell some cars. Let's go!