EU Slaps Stiff Tariff On SAIC-GM and SAIC-GM-Wuling Chinese-Built EVs
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As Europe and the U.S. continue to mull the potentially cataclysmic automotive industry fallout of low-cost, abundant EVs arriving on their shores from China, the European Union (EU) just put hefty new tariffs on multiple Chinese automakers, including General Motors joint ventures SAIC-GM and SAIC-GM-Wuling.
The tariffs are set at different levels for various specific companies, as Bloomberg and Reuters report, with some of the highest tariff increases being leveled at the two GM joint ventures’ Chinese-made vehicles.
SAIC-GM-Wuling Initials Written With Chevy Captiva Units
Prior to the latest import duties applied by the European Commission, SAIC itself and all of its joint ventures – including SAIC-GM and SAIC-GM-Wuling along with its Volkswagen subsidiary – were subject to a 10-percent tariff on vehicles shipped to the EU. The Commission stacked an additional 37.8 percent tariff on top of that, raising duties to 47.8 percent.
The 37.8-percent tariff hike was applied to companies that refused to cooperate with the EU’s investigation into Chinese government subsidies allegedly used to unfairly undercut international EV automakers. SAIC-GM and SAIC-GM-Wuling failed to aid the EU inquiry and therefore received the highest possible tariff increase. Chinese automakers that helped the investigation saw duties on their vehicles rise by an average 20.8 percent.
For the time being, the increased tariffs will have no direct effect on either of The General’s joint ventures in China. Neither company currently exports its electric vehicles to Europe. The European Commission has also signaled that it is open to reducing the tariffs if the government of China agrees to “a mutually beneficial solution,” per Commission vice president Valdis Dombrovskis.
Dombrovskis added that “it’s very clear that this solution needs to resolve this market distortion we’re currently having.” Such a negotiation appears unlikely in light of the Chinese government’s immediate response in the form of an investigation of pork imports for “dumping.” The Chinese state indicates it could expand its retaliatory measures to European cars, aircraft, and other major food imports besides pork.
In the United States, the Biden administration already imposed a 100 percent tariff on Chinese EVs, up from 25 percent. The list of potentially affected vehicles includes some Chinese-made General Motors models such as the Buick Electra E4 and Buick Electra E5, if the automaker decided to import them instead of building them in North America. However, only one GM model is currently imported from China, and that’s the gas-powered Buick Envision.
Canada is also weighing higher tariffs on Chinese EVs, though the process is longer and more involved. The amount by which tariffs would increase has not yet been decided, though some Canadian politicians are calling for 100-percent duties or higher.
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Good.
Outstanding!
GM shouldn’t even be involved with any Chinese company or development. All these American car companies who develop cars for Chinese markets should stop immediately. Besides the fact that China is communist, China Is the biggest enemy of the United States we need to wake up.
Offshoring. …. but it sounds so good on paper .
Build cars in developing countries with cheap labor and export them back to the West at Full Price.
“We’ll make a fortune !”
How’s that working for you, Dip-****s ?
I guess there is a limit to how much they want to save the planet.
Check around your house. In 10 minutes I could find 100 or more products made in China. Get off your horse.
And I bet none of them cost over three digits. Big difference between a $200 TV and a $50000 vehicle that could have been built in the US at a profit and employed AMERICAN workers.
True, however ALL of the profit comes back to the US, which goes on to fund other expansion initiatives, charities, employees’ 401(k), your 401(k), my 401(k), invstments, etc. If you have any invested mutual fund it likely has GM stock in it. Not disagreeing with the sentiments here, but it’s not as simple as “where” the vehicle is assembled.
It comes back to the US so Ford can invest in more plants and technology centers in low-wage countries. The same can be said for gm. Look at where Ford and gm’s latest vehicles are sourced: Equinox, Terrain, Blazer (and the EV variants) all come out of Mexico; Trax, Trail Blazer out of South Korea; Envision out of China. Same with Maverick and Bronco Sport. Many US and Canadian plants are left with low-volume vehicles to build such as the Hummer and the ever-delayed Explorer EV.
You forgot the Lyriq which is Cadillacs second best selling vehicle. It’s built in Tennessee. The Hummer and Silverado EVs are built in Detroit.
If taxpayers agreed with you then why the need to drop a staggering 100% penalty on each one? May involve the fact that a 50k investment into a US ev will not return even near what a 18k investment into a china made ev. In fact would any one here invest a nickel into our ev lineup? Even our makers conceed failure
So f*** it then right? May as well send the rest of the holdouts to China while we’re here. Why resist with our wallets and demand to keep jobs at home? While we’re at it drop all tariffs and let the Chinese manufacturers come in and decimate our industries with product dumping. Anyways it doesn’t matter. The younger generation of this once great country that provided better lives and hope for a future for many leaving oppression (including many Chinese to this day if you follow up on the border crisis) don’t even have an ounce of national pride or gratefulness for being able to poke fun at the likes of Trump or Biden (but go ahead and try it over in China and see if you will stick around for long).
I’m getting tired of hearing this tired old defeatist argument of “well too many things made in China let’s continue to hollow out our economy and prop up a country that would love nothing more than to watch us fail as a nation so they can lead the world with their government first ideals.” People with this mentality is the reason this country is having the issues we see today. But go ahead and take your economic wellbeing and personal freedoms for granted. Remember that just because you don’t work in the industry it doesn’t mean you won’t get economically affected by it.
The only thing preventing Chinese world dominance is America where half of the population wants to kill the other half in a politically obsessed culture…
Watch videos of what they are teaching the youth in China. Then tell me if you are so concerned about the other side of your American political beliefs when you have a youth being brainwashed into wanting to kill Americans. No American unless mentally ill wishes death upon a fellow American regardless of political beliefs. But what they are doing there is reminiscent of Germany in the 1920s and THAT is terrifying.
The Chinese clearly know who their enemy is. For many Americans China is their supplier of cheap goods.
I get what you are trying to say. That economic co-dependence is a way of maintaining peace. But it doesn’t change the fact they are teaching their kids to hate Americans. I don’t get why. If you have a problem with the US government take it up with them. Not innocent Americans that want to live their lives. This has also made it unsafe for Americans to travel to China because of a few ultranationalists that have been attacking foreigners.
Tell that to the Ukrainian population who are getting indiscriminately bombed on a daily basis
Bombed by who? The Russians with financial support from China?
As we know, these foreign investments were made under the guise of lifting 3rd world countries economies and nudge them toward Democracy. What happened, we gobbled up the cheap goods and lost the good paying jobs.
Lost more than good paying jobs…
And now aliens from the 3rd world are coming across our borders illegally and we’re paying for them. Many don’t have the job skills needed in this country because we’ve already exported those types of jobs. Thus, they will only be a burden until they’re shipped home.
But, they do a good job of mowing lawns and spreading mulch. LOL
“…we gobbled up the cheap goods and lost the good paying jobs.” This began with imported European and Japanese autos in the past century, and now with the South Korean autos. Will the next Administration in 2025 apply tariffs to these other imports?
German goods aren’t cheap. I have an $800 Miele vacuum cleaner. Made in Germany and built indestructible.
Too bad they are unserviceable
And they are still communist countries.
And built up a country who’s single goal is dominance, so they have leverage to do as they please starting with Taiwan. They will achieve that dominance by hollowing out industries in other countries so they can’t enforce justice on a player that is looking to dominate sovereign nations. They are already building up their youth to view themselves as the superior race and everyone else is below them. Kinda reminds me of a certain country in Europe during the mid-20s and how that landed up.
China is building a modern nuclear strike force on target to exceed the US by 2030. China wants to smoke your Murican azzes.
Keep subsidizing the Chinese military -PLA- with your cheap junk that fills your houses. 🇨🇳💥
So a significant tariff is supposed to be a big deal.
Why?
European, Japanese and other Aisan countries have been doing
that to American cars for years.
The US could have/should have been doing this to Imported cars/trucks
since about 1971.
Without serious competition, Americans built their worst cars of all times in the 70’s. They were literally rusting in the showrooms.
Competition improves the breed. GM was so arrogant that it didn’t learn until it went bankrupt.
Come on man!
“rusting in the showrooms” is a bit of a stretch.
That term was mostly used for Russian LADA’s, Renault Dauphines, FIATs and YUGO’s.
I had a 1972 Mercury and it was completely rusted by 1976 in Northern Climate. Ford’s were especially bad when it came to rust but they weren’t the only ones. They don’t call it the “malaise” era for nothing.
“Northern Climate’ AKA The Rust Belt. Rust not surprising.
With the kind of Salt used back then in the “Northern Climate”, please tell me what kind
of cars didn’t rust swiftly, especially the early Toyotas and Datsuns.