Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
GM could pull China-made Buick Envision from U.S. without tariff exemption
Michael Wayland | 2018/8/7

DETROIT -- General Motors could pull the China-made Buick Envision from the U.S. if the Trump administration does not grant the company a tariff exemption on the vehicle.

The automaker sees the potential exemption as ¡°the only way¡± to continue offering the vehicle to U.S. consumers, according to GM President Dan Ammann.

The Envision is made by Shanghai General Motors, a joint venture between GM and SAIC Motor Corp.

¡°That¡¯s a vehicle that is a relatively low-volume vehicle in the U.S. market,¡± Ammann told reporters Friday after a presentation at the Billington CyberSecurity Summit in Detroit. ¡°It¡¯s a high-volume vehicle in China, so in order to have that vehicle available in the U.S. market, this is the only way that can work for us.¡±

Ammann declined to comment on whether GM has sought other exemptions or plans to do so in the future.

Carmakers across the world, from Germany¡¯s BMW Group to Hyundai Motor Co. of South Korea, have urged President Donald Trump¡¯s administration not to impose tariffs on cars imported to the U.S. as part of a trade war with China. GM warned in June it might shrink U.S. operations and cut jobs.

Ammann¡¯s remarks echo those in a July 30 filing with the Office of the U.S. Trade Representative about excluding the compact crossover from import tariffs.

¡°While the volume of Envisions sold in the U.S. is small, it is strategically important and essential to the Buick brand,¡± GM said in its request. ¡°A 25 percent tariff on the Envision may eliminate the vehicles from Buick¡¯s U.S. offerings.¡±

GM sold 210,000 Envisions in China last year compared with 42,000 in the U.S., according to the filing. Those domestic sales aren¡¯t enough to support a U.S. manufacturing plant, but GM needs to offer the model to have a complete lineup against brands such as Audi, Lexus and Mercedes-Benz, it said.

Sales of the Envision in China and in the U.S. ¡°both lead to significant repatriation of funds¡± to invest in U.S. manufacturing and development of next-generation automotive technology, GM said in the filing.

¡°The profitability that we generate on that vehicle, selling it in the U.S. market, we obviously reinvest in the business here so we think it¡¯s in everybody¡¯s interest for that to continue,¡± Ammann said.

Such tariffs are expected to have a much broader effect on Buick than GM's other three brands. It could put Buick in an untenable position in the U.S., which accounted for only 15 percent of the brand's 1.4 million global sales last year -- while China made up 83 percent.

The Envision, which former UAW President Dennis Williams called the ¡°Invasion,¡± has been a sore point for union officials and some politicians.

While GM prefers to build vehicles where the company sells them, GM began importing the vehicle from China in May 2016. It was the first light-duty vehicle of any domestic automaker to be built in China and imported for U.S. consumers.

Bloomberg contributed to this report.  

Related Stories
  • Detroit 3 lose shine in China as trade tensions simmer
  •     --Published:2019/14/6
     
  • GM's 2 joint ventures post sales declines amid soft demand
  •     --Published:2019/14/6
     
  • U.S. rejects GM, Volvo requests for tariff relief on China-made vehicles
  •     --Published:2019/7/6
     
  • U.S. brands are losing ground in China, but don't blame Trump
  •     --Published:2019/24/5
     
  • Sales at GM's 2 joint ventures plunge
  •     --Published:2019/14/5
     
  • Behind GM's GEM of a plan to hit pay dirt in China, emerging markets
  •     --Published:2019/19/4
     
  • GM's Baojun brand plots major makeover
  •     --Published:2019/19/4
     
  • GM's 2 joint ventures see sales decline again
  •     --Published:2019/12/4
     
  • Chevrolet to unwrap 2 crossovers
  •     --Published:2019/2/4
     
  • Sales decline accelerates at GM's 2 joint ventures
  •     --Published:2019/15/3
     
  • GM to launch 9 locally produced electrified vehicles in next 5 years
  •     --Published:2019/15/3
     
  • GM's 2 ventures post lower sales to start 2019
  •     --Published:2019/19/2
     
  • Buick's U.S. lineup may draw on China
  •     --Published:2019/19/2
     
  • GM to launch 20-plus new and updated models this year
  •     --Published:2019/12/2
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    »¦ICP±¸06057291ºÅ