(Yicai) Aug. 15 -- There has been no change to General Motors’ partnership with Chinese automaker SAIC Motor and its commitment to their joint venture SAIC-GM is unwavering, the US car manufacturer’s China arm said in response to a report that it is planning reducing its headcount and business restructuring in the country.

GM and SAIC are working closer than ever to achieve profitability and sustainable development as well as to ensure that they meet their long term goals, the China division of the Detroit-based company said, after China sales of the JV’s Chevrolet, Buick and Cadillac cars more than halved in the first seven months year on year.

GM will lay off workers in China to reposition itself in the world's largest automotive market, Bloomberg News reported on Aug. 13, citing informed sources. GM plans to implement a larger-scale structural reform of its business in China, as the company has recognized that its sales are unlikely to return to the peak levels of 2017.

GM will continue to provide the best products and technologies for Chinese consumers and is focused on planning for the future, the China division said.

GM’s China business is a value asset for the company both now and in the future, Chief Financial Officer Paul Jacobson said last week.

GM China is facing severe overcapacity and it will suggest reducing capacity with SAIC as part of a reworked strategy for selling American brands in China, Bloomberg said.

SAIC-GM's sales plunged 82.4 percent in July from a year earlier to 15,000 vehicles, according to a recent report by Shanghai-based SAIC. From January to July, sales tumbled 55.1 percent year on year to 240,600 vehicles.

SAIC-GM appointed a new general manager on Aug. 9. Lu Xiao, the former executive vice president of the Pan-Asia Technical Automotive Center, has replaced Zhuang Jingxiong.

Editor: Kim Taylor