General Motors Tries Two Ways To Dodge Tariff On Chinese-Built Buick Envision Import

[Gorehamj]

John Goreham

Staff Writer

8-3-18

 

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.  

[Osirus]

Don't try actually building them here or anything.

[swathdiver]

Inappropriate conduct by GM.  The goal of these new tariffs is free trade between countries.  Our new tariff's are a response to tariffs levied against American goods being imported into other countries for decades.  The media as usual has not been truthful.

[Campier]

So, GM will lose market share and profits in this important market segment. I have many friends who work for GM. GM is one of my employer's largest customers. This will burn Ohio.

The trade war will mean that GM will shift production of other models to Mexico  to avoid tariffs being imposed by many countries.  The result of Trump's stupid move is that we will lose auto making jobs and parts making jobs in the US. A Wall Street Journal article noted that idiot Mnuchin was surprised that the trade war escalated so quickly.

[Colossus]

I don't think Buick will be around much longer as it is- at least in the states. 

[sduff]

Straighten me out here....we are concerned about making this car in the US and putting American Autoworkers to work.  We would rather have the Chinese and Mexicans building our cars for us.  I guess this is why we bailed GM out and saved them from going under.  Make America Great Again.....

[newdude]

Build the Chinese market one there and build the NA market one here.  That's the real and should be the only fix.  I smell Lordstown making a push for this?  They want to keep the lights on, this could be there chance.  Maybe Oshawa?  How about Spring Hill? 

[Grumpy Bear]

Hold on guys, GM is giving an Ethics lesson.        Pay some attention.   

[Doug_Scott]

Don't think trump really looks very deep into the results of his actions.  Putting tariffs on stuff imported into the USA without having the ability to produce those items/materials at the pre-tariff prices for the American market.  The immediate effect will likely be higher retail prices.  Does he think that somehow cheap steel will suddenly be able to be produced in the USA?  What part of the US government gets those tariffs? Trump seems to think the government is a for profit company. 

[Andy King]

On 8/3/2018 at 4:27 PM, swathdiver said:

Inappropriate conduct by GM.  The goal of these new tariffs is free trade between countries.  Our new tariff's are a response to tariffs levied against American goods being imported into other countries for decades.  The media as usual has not been truthful.

The true goal of these tariffs is to tax us, to make-up for all the tax breaks Trump give to the rich.

[swathdiver]

3 hours ago, Andy King said:

The true goal of these tariffs is to tax us, to make-up for all the tax breaks Trump give to the rich.

LOL

[truckofwinandawesome]

On 8/6/2018 at 5:27 PM, newdude said:

Build the Chinese market one there and build the NA market one here.  That's the real and should be the only fix.  I smell Lordstown making a push for this?  They want to keep the lights on, this could be there chance.  Maybe Oshawa?  How about Spring Hill? 

from what I gather, Spring Hill is at capacity building XT5s and Acadias (both LHD GMCs and RHD Holdens) as fast as they can; as well as the upcoming Cadillac XT6.

[Campier]

https://www.washingtonpost.com/blogs/right-turn/wp/2018/08/08/a-microcosm-of-trade-war-inanity

 

The tariffs and retaliation would increase U.S. steel employment and non-ferrous metals (primarily aluminum) employment by 26,346 jobs, but cost a net of 495,136 jobs throughout the rest of the
economy, for a total net loss of nearly 470,000 jobs; Eighteen jobs would be lost for every steel/aluminum job gained. . . .

Every U.S. state will experience a net loss of jobs as a result of the steel and aluminum tariffs and retaliation. Heaviest hit are California, Texas and New York

BTW, the columnist Jennifer Rubin is a Republican.

[KARNUT]

A little pain now big gains later. Or let’s give our money and treasure to foreign countries. I’ll pay a little more for American made. People can’t be losing jobs too rapidly, just look at the numbers.


Sent from my iPhone using Tapatalk

[garagerog]

On 8/6/2018 at 6:27 PM, newdude said:

 

Build the Chinese market one there and build the NA market one here.

 

In the late fall of 2016 wife and I were looking over GM CUV's, at our local GMC/Buick dealer we looked over an Envision that was way better equipped and much less expensive than the Terrains on the lot. I almost bit until I saw the made in China on the window sticker, I apparently wasn't the first one to pass because apparently they couldn't sell it for anywhere near asking price. Has nothing to do with politics, just concern over quality of Chinese made products, we ended up with a 2017 Nox.