U.S. Denies GM Exemption On Tariffs For China-Made Buick Envision
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Amid a growing U.S.-China trade war, numerous companies have petitioned the federal government to exempt their products from tariffs as high as 25 percent. The U.S. showed GM no mercy in its own request.
Reuters reported Tuesday that the U.S. rejected GM’s request to exempt the Buick Envision from such tariffs. The Envision is the sole vehicle GM imports from China to the U.S. and is subject to the tariffs the Trump administration has imposed on the country.
GM received its denial on May 29th, per the report, after the U.S. Trade Representative’s office declared the Buick Envision is “a product strategically important” to Chinese industrial programs.
As for the crossover’s future in the U.S., it’s bleak. The automaker made it very clear that the only way it would continue to sell the Envision domestically was with a tariff exemption and there are no plans to tool a plant for production in the U.S., or North America for that matter. In 2018, former GM President Dan Ammann said the Envision was a low-volume model for the U.S. and the vast majority of Envisions are sold in China. Thus, building the crossover locally in China was the best option.
With a 25 percent tariff in effect on the Envision, GM would need to pass along roughly $8,750 to the consumer. However, GM confirmed with Reuters that it’s aware of the denial and it has been paying the tariff itself, rather than raising the price of the crossover. It’s highly likely, barring any major breakthrough between U.S. and Chinese negotiators, that we’ll soon see the Envision exit the market.
Sales of the crossover have hardly taken off since its introduction. Envision sales fell 27 percent last year to 30,000 units, and through the first three months of 2019, they dipped another 21 percent.
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Source: Reuters
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Trump is not a fan of GM.
The good news is that this is the only vehicle GM imports from China.
The auto industry continues to face higher costs as a result of Trump using Tariffs as a weapon of trade negotiations.
Mary Barra is a Hitlary supporter but that’s not why GM was denied the waiver. No one buys the Envision because it’s not a great vehicle and many simply won’t buy because it’s not made here, by American Employees.
Should America continue to “allow” China to have all the restrictions in place to sell in their market but we have free trade here? Their cheaper labor allows for an $800B flow of $$ from here to China annually. They’re draining our wealth… President Trump deserves applause for actually doing something about it. Anyone who criticizes him for this stance or tariffs on Mexico simply do not understand geopolitics.
Oh and Trump is succeeding and Typhoid Mary is an incompetent failure…
How sad for poor Mary. Is anybody actually going to miss an outdated boring generic CUV in a world overloaded with them? I won’t
Every time I look at an Envision, just them to want to sink to the bottom of the ocean.
Womp-womp GM for trying to import this POS on the cheap..
If the Mexican tarrfs are enacted, wonder if GM will get an exemption for the Blazer, etc?
Marry should have worn MAGA hat when she met Trump. This way she would be able to get a deal. Kanye West did it.
I, for one, like the styling of the Buick Envision, especially after it was refreshed. (Of course, nearly all of GM’s vehicles could be given more exciting designs, but it’s okay the way that it is.) I also like how it has more rear legroom than the Encore but is not as large as the Enclave. And effective with the 2019 model, it’s the only Buick that comes with a on/off switch for the engine start-stop.
Off topic, but since you brought it up, there is absolutely no reason for GM not to let drivers opt to use the start/stop mechanism. I drove a Volvo last week and the option is right there on the touch screen. And not to shut it off each time you start the car, but to turn it on or off – period – and it stays that way until the driver elects to use it or not. If Volvo can do it, why not GM?
Good! The fact that GM can still sell this vehicle at a profit despite the 25% tariff shows how much they are gouging the customer.
Can they sell it though? Does anyone buy them?
https://en.wikipedia.org/wiki/Buick_Envision#Reception
Tariff the hell out of them, besides G M cars are just getting more ugly and boring as they where in late 70,s 80.s 90;s
These are the expected consequences when companies like GM treat cheap labor countries like China as an endless cash cow. World politics change, and we deserve every pain we feel by handing over all our manufacturing to a communist country that has no respect for patent law.
I am also glad to see the tariff to be put on G m. They should build in the unite states.that is why I bought a Cadillac
Gee, all the kissing up Mary has done in D.C. got her “diddly squat.” What a shame.
No matter how much this Envision appeals to me over the cramped Encore & the cavernous Enclave, I’ll be damned if one of the biggest purchases I make has a “Made in China” label on it. You’d think Mary & the overpaid execs making the big bucks decisions in the ivory GM Towers could figure that out.
GM dying on the vine,,,,,,what happened to this company…..no more cars ….chinese mexican made POS…..Thanks BARRA,,,,,