General Motors is concerned that the Buick model that makes up about one in five of all Buick sales will be unprofitable when the new tariff on imported Chinese goods is applied to it. To try to avoid paying the tariff on the low-volume crossover, GM has employed a two-pronged strategy.
First, GM pulled in six months inventory from its Chinese factory and sent those Envisions to the U.S. ahead of the import duty being imposed. GM sells about 20,000 Envisions every six months in the U.S., though sales have slowed a bit recently. In China, GM sells about 100,000 Envisions every six months.
The second way GM is trying to keep this non-union-built imported Chinese vehicle from being subject to the tariff is by lobbying. GM has reached out to the U.S. trade representative to plead its case for an exemption. This will be a long swim for GM, whose June quarterly sales recap headline was “GM Gains Half a Point of Market Share as Chevrolet and GMC Second Quarter Deliveries Soar.” included in its four main points outlined at the top of the report was, “Double-digit gains or better for 14 vehicle lines, including every single Chevrolet and GMC pickup and SUV nameplate.” Every single Chevrolet & GMC pickup and every full-sized SUV GM builds is presently built in North America and protected by a 25% import tariff. And has been for 55 years since President Johnson instituted it.
Some facts in this story were verified by this Reuters story.
Hey guys, not sure if this has been covered before (searched but didn't find much on my specific question), but has anyone north of the border had any luck selling the aluminum spare from a higher end model? I just got an 2018 LTZ Z71 and it, by default comes with an aluminum spare (though I can't really understand why.....maybe someone here knows that too??).
I was thinking that if I pulled it off, replaced with a standard steel rim and a used tire (that will pass safety and holds air properly), I could likely make some money on the deal.... the only thing I've noticed is that the aluminum is of a design that isn't anything you see on GM brochures for stock rims and I didn't know how "sellable" this rim might be (specifically in Canada, as I can't justify taking it across the border for the little I would make on it).
Contributing Writer, GM-Trucks.com
Earlier this week GM-Trucks.com reported that the bean counters at Goldman Sachs had estimated import tariffs on steel and aluminum could cost GM $1billion in profits. Maybe they were wrong? In an interview this week, GM's CEO Marry Barra was asked specifically about the top-selling General Motors vehicle, the Silverado. The host asked, "Have you done any studies? Would it jump the price of a GM Silverado by $100? Is there a way to gauge?" Ms. Barra's answer was interesting. She said, "It's a small impact. We would look to find offsets and efficiencies in other places to not have to pass that on to the customer." Although that was good news for Silverado buyers, what Barra said earlier in the interview was a bit of a surprise, given the media's coverage of the tariff issue. When asked if she thought there would be tariffs on imported steel and what it would mean for the price of a General Motors car, Barra said, "We source about 90% of our steel and the majority of our aluminum from the United States. So when I look at the specific impact from that perspective I think it something we can more than offset. "
Barra did go on to say that if there is a change that drives the cost up it will have a direct effect on demand. For part one of our coverage regarding why GM and other automakers are staying silent on tariffs, please check out our prior story.
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