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GM Wants A ‘Level Playing Field’ With Chinese EV Makers

As General Motors moves forward with its transition to all-electric powertrains, the company is making significant strides in bolstering its EV offerings. A key part of The General’s EV strategy is the affordable the Chevy Equinox EV, set to launch this year. Luckily for GM, it looks as though U.S. automakers won’t have to compete with ultra-cheap Chinese-made EVs as a result of recent tariff hikes, at least for now.

GM won't have to compete with ultra-cheap Chinese EVs in the U.S. market thanks to recent tariffs.

2024 Wuling Bingo Plus EV

As GM Authority covered previously, the Biden administration has announced a 100 percent tariff on Chinese-manufactured electric vehicles (EVs), a substantial increase from the 25 percent in place previously. This move is designed to curb an influx of ultra-cheap Chinese-made EVs into the U.S. market, thereby creating a more equitable environment for domestic manufacturers like General Motors.

Speaking at a media event for the Equinox EV attended by GM Authority, General Motors President Mark Reuss, expressed his support for the tariff, emphasizing the need for fair competition. “We just want a level playing field,” Reuss said. “There are strategies where folks will get into a price war and not make money, but try to price things out of markets. It’s not even [China’s] supply chain, it’s their pricing strategy. We just want a level playing field to be able to price and make a profit and deliver value to our customers.”

Chevy Equinox EV

The new Chevy Equinox EV will be priced around $35,000 after tax credits. An even more affordable LT variant is set to debut later this year, with prices expected to be in the high-$20,000 range after tax credits.

The recent tariff hike is part of a broader strategy by the Biden administration to bolster domestic manufacturing capabilities in critical sectors, including semiconductors, batteries, and EVs. In addition to the 100 percent tariff on Chinese-made EVs, the administration has also increased tariffs on Chinese-made EV components and Chinese-sourced minerals essential for EV production.

Buick Electra E4

Currently, General Motors manufactures several all-electric models in China through its SAIC-GM joint venture, including the Buick Electra E4 and E5, plus Chinese-market versions of the Cadillac Lyriq and Cadillac Optiq. While General Motors has no plans to import these models to the U.S., the increased tariffs create a significant barrier for any future all-electric imports from the country.

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. Every brand can’t be a “luxury brand”…. Why are you complaining when gm is literally making Chevy just as upscale as gmc with pricing and options. A Chevrolet ev should be no more than 40k…. But hey let’s cry to our competitors that we can’t price our cars at a decent price

    Reply
  2. Make their cars more expensive because we can’t figure out how to have an efficient car making strategy after over 120 years in business. We actually lose money because we are so out of touch and bloated. We would rather spend a billion on lobbyists than spend 1.01 billion on making better vehicles.

    Reply
    1. A significant investment in the car business by the Chinese government makes their cars and EVs very cheap , so the tariffs are warranted for sale of Chinese EVs in North America, unless of course if you want the American government to subsidize the car industry to the extent the Chinese do.

      Reply
    2. While GM and Ford are complaining about imports, and complaining they are losing money on electric vehicles, did they forget already that they just gave their workers the largest wage and benefits package increase in history?
      Come on man, the problem is not China it’s the cost of Union Labor in this country.

      Reply
      1. Should we all work for a $1 an hour as they do in China?

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  3. I remember a Wumao arguing with me how these tariffs go against WTO rules. As if the WTO even matters at this point when the country in question breaks more of those rules than any other and nobody in the WTO seems to bat an eye. So at this point, the rules don’t matter anymore and for those that don’t want to play fair with others, don’t complain when the others will do what it takes to safeguard their own interests.

    In fact, it should be taken a step further and require JVs if any Chinese manufacturer had interest in selling in the US.

    Reply
    1. The WTO is a toothless lion farce.

      Reply
      1. The WTO is in Chinas pockets. Much like the WEF.

        Reply
  4. The BYD brand sells for around $11,000. How can the US compete with this company when they are subsidized by the Chinese government.

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    1. Say nothing of near slave labor.

      Reply
  5. Imagine that it’s an election year. Crooked politicians and president.

    Reply
  6. What the Chinese are doing vis a vis subsidies to the EV industry has a significant parallel to the Europeans did in subsidizing Airbus Industrie when it got off the ground. So be forewarned, the proverbial handwriting is on the wall.

    Reply
  7. Mary Barra was paid almost $17M last year in total compensation including stock options. These salaries are why Chevy has become a luxury brand and there are no entry-level standard pickup trucks that would surely be a hit in this country.

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    1. They price like a luxury brand but are pretty far behind the competition. Cadillac has become “near luxury” and their products are barely competitive in that segment.

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      1. Have you sat in a late model Escalade lately? They are quite nice and very well appointed. They aren’t the slightly nicer Denalis they were when they were first introduced. There is a reason they are still one of the most popular luxury SUVs out there.

        When GM tries, they are more than capable of making a competitive product. Even a competitive luxury product. The problem is they need to try along the whole lineup in all brands not just select models.

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    2. GM sold 2.6 million vehicles in 2023. That would represent $6.50 per vehicle.

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  8. Funny thing is Cadillac is an average luxury brand… right in between bmw luxury and Acura luxury

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  9. Mighty gm had every opportunity to invest in BEVs before Tesla ever produced a vehicle, but they had more important things to do such as making a fleet of expensive trucks and crossovers, even for the budget-oriented Chevrolet brand. Decontenting of vehicles was top of list too, as was selling personal data and ceding the sedan market to the transplants. But yes, let’s cry about the level playing field. gm and its crosstown rivals helped to teach the auto biz to the CCP. Now they are reaping what that have sown, which is somehow unfair.

    Reply
  10. They really are putting their eggs in all one basket aren’t they ? As far competing with China , us needs to produce more here .

    Reply

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