General Motors asks Trump to protect Buick Envision from customs duties

General Motors asks Trump to protect Buick Envision from customs duties

August 3, 2018 0 By autotimesnews

The American concern General Motors, apparently, was not ready for the policy of protectionism of the US president Donald Trump, who imposed duties on goods and cars produced in China in particular.

According to the publication Automotive News, the management of the concern asks the American leader to exclude the compact luxury crossover Buick Envision from the list of excisable goods that are imported to the US. Recall that General Motors produces this model in China, and from there it is imported to the US market, where it is now subject to duty at a rate of 25%, which, without any doubt, seriously hits its positions in comparison with its competitors – Acura RDX, Audi Q5, Lexus RX 350, Lincoln MKC and other models.

The largest producers of Germany and South Korea in previous months asked Trump not to impose duties on cars that are imported into the US from China. GM back in July with fear expressed in this regard that such a decision will lead to a massive reduction in dealer networks. Last year, Buick dealers sold in China 210,000 copies of Envision, US dealers sold another 42,000 cars.

Our colleagues asked General Motors to comment on the situation. And that’s what his representatives said on this score:

While the volume of sales in the US is small, it is strategically important and necessary for the Buick brand. A 25 percent tariff for Envision may lead to the fact that it will disappear from Buick’s proposals in the US. Envision’s sales in China and the US “lead to a significant return of funds” for investment in manufacturing in the US and the development of next-generation automotive technologies.

In June of this year, American dealers Buick sold 2,373 copies of Envision, which is more than twice less than in June last year, but only statistics for July and August will show how much duties will hit automakers.