In early July, the US authorities imposed duties of 25% on imports of an extensive list of goods from China. The American concern General Motors has also become an unplanned victim of the restrictive measure - it is now unprofitable for it to import into the United States the mid-size crossover Buick Envision, which the company manufactures in China and supplies to the States in finished form.
GM has filed a request with the Office of the US Trade Representative to exempt the Buick Envision from the anti-China duty. In its appeal, the concern notes that the profits received from the sale of the model "are directed to the development of production capacities and the development of next-generation technologies in the United States."
In China, GM sells 200,000 Buick Envisions a year, while 41,000 of them were bought in the US last year. The concern says that it is unprofitable to localize the production of a crossover in America at current volumes. However, it is a very important model for GM, accounting for 19% of total Buick sales in the US last year.
“The profits that we make from this car in the US market, we will, of course, reinvest in the US,” said GM President Dan Emmann.
However, the UAW (Automotive Workers) union opposes the release of the Buick Envision from the collection.
“Our position is simple: products sold in the US must be made in the US. They can build 41,000 Buicks here and support American workers!” said Terry Ditts, UAW Vice President.
Interestingly, in anticipation of the introduction of anti-China tariffs, still at the old rate of 2.5%, GM imported into the US a huge batch of Buick Envision, which should be enough for six months of sales.
As a last resort, GM plans to move production of the crossover from China to another country that the US does not pursue a restrictive policy.
The Buick Envision has been in production since 2014. The model is produced at the Shanghai-GM joint venture plant. This is the first and so far the only model of the concern, which is supplied to the USA from China. Outside the Middle Kingdom, the crossover is not available. In the US, the car is sold in versions with 2.0 and 2.5 liter petrol engines. The first is equipped with a turbocharger and develops 260 hp, the second is atmospheric, produces 192 hp. Transmission - automatic, 6-speed. Drive - front or full. The price is from $35,000.
The first batch of Buick Envision was delivered to the US on a bulk carrier at the end of December 2015. At that time, The Wall Street Journal noted that the cost of a Chinese-made Envision, even including shipping, is significantly lower than if the same car was produced in the United States.
US anti-China tariffs hit General Motors. The company asks for an exception
