“As you know, the Chinese market has significant excess capacity and many startups and established competitors continue to prioritize production over profitability. We’ve been taking steps to reduce our inventories, align our production to demand, protect our pricing and reduce fixed costs. But it’s clear the steps we have taken, while significant, have not been enough. We had expected to return to profitability in China in the second quarter. However, we reported a loss and we expect the rest of the year will remain challenging because the headwinds are not easy. We are working closely with our JV partner to restructure the business, make it profitable and sustainable,” Barra said.