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U.S. denies GM tariff relief request for China-made Buick SUV

WASHINGTON — The Trump administration has denied a General Motors Co request for an exemption to a 25 percent U.S. tariff on its Chinese-made Buick Envision sport utility vehicle. The denial of the nearly year-old petition came in a May 29 letter from the U.S. Trade Representative's office saying the request concerns "a product strategically important or related to 'Made in China 2025' or other Chinese industrial programs." The midsize SUV, priced starting at about $35,000, has become a target for critics of Chinese-made goods, including leaders of the United Auto Workers union and members in key political swing states such as Michigan and Ohio. GM said on Tuesday it was aware of the denial and has been paying the tariff since July. GM has not raised the sticker price to account for the tariff. Buick Envision sales fell in the United States by nearly 27% to 30,000 last year and fell another 21% in the first three months of 2019. Only a small number of vehicles are built in China and sold in the United States. Last month, the U.S. Trade Representative's Office also denied a request by Chinese-owned Volvo Cars for tariff exemptions for mid-size SUVs assembled in China after the automaker sought an exemption for the XC60, its top selling U.S. vehicle. GM, the largest U.S. automaker, argued in its request that Envision sales in China and the United States would generate funds "to invest in our U.S. manufacturing facilities and to develop the next generation of automotive technology in the United States." GM said last year the "vast majority" of Envisions, about 200,000 a year, are sold in China. Because of the lower U.S. sales volume, "assembly in our home market is not an option" for the Envision, which competes with such mid-size crossover vehicles as the Jeep Grand Cherokee and the Cadillac XT5. Ahead of the July 2018 start for higher import tariffs, GM shipped in a six-month supply of Envisions at the much lower 2.5 percent tariff rate, Reuters reported in August 2018.

Trump prods General Motors over its auto plants in China

WASHINGTON — U.S. President Donald Trump, who is engaged in a trade war with Beijing, said on Friday that the largest U.S. automaker, General Motors, should begin moving its operations back to the United States. "General Motors, which was once the Giant of Detroit, is now one of the smallest auto manufacturers there. They moved major plants to China, BEFORE I CAME INTO OFFICE. This was done despite the saving help given them by the USA. Now they should start moving back to America again?" Trump said in a post on Twitter. Trump appeared to be referring to a Bloomberg News story that reported GM's hourly workforce of 46,000 U.S. workers has fallen behind that of Fiat Chrysler as the smallest of the Detroit Three automakers. Over the past four decades, GM has dramatically cut the size of its overall U.S. workforce, which numbered nearly 620,000 in 1979. GM did not directly comment on Trump's tweet. "GMÂ’s China operations are not a threat to U.S. jobs," the company said in a fact sheet, noting that its joint ventures have sent $16 billion in equity income to GM since 2010 and that it has invested $23 billion in U.S. operations since 2009. GM's U.S. hourly workforce has fallen by about 4,000 jobs since the end of 2018 to about where it was a decade ago. Trump's ire with GM comes as contract talks with the United Auto Workers union with the Detroit Three automakers intensify ahead of a Sept. 14 deadline. Trump has previously attacked GM for building vehicles in Mexico and for ending production at plants in Michigan, Ohio and Maryland and threatened to cut GM subsidies in retaliation. GM's decision to close four plants in the United States is a central issue in the contract talks. Trump has made boosting auto jobs a key priority and has often attacked automakers on Twitter for not doing enough to boost U.S. employment. His 2020 re-election bid will hinge on holding key industrial battleground states like Wisconsin, Pennsylvania and Michigan that narrowly voted for him in 2016. China is the worldÂ’s largest auto market, and government policy favors automakers assembling vehicles there, and not importing them from overseas. In response to TrumpÂ’s latest tariffs, China said last week it will reinstitute 25% tariffs on U.S.-made vehicles. The U.S. is imposing 15% tariffs on more than $125 billion in Chinese goods starting Sunday. GM sold 3.6 million vehicles in China last year accounting for 43% of its worldwide sales.

Buick officially launches the redesigned 2021 Envision

The 2021 Buick Envision is officially official. Yes, that Envision — the one we showed you back in May 2020 — is now for sale, and we now have all of the finer details about the redesigned crossover, which is lower, wider and more technologically robust than its predecessor.  One could argue that we already knew the most important thing about Buick's updated CUV: It looks good. The same couldn't necessarily be said of its previous incarnation, which, like several of GM's outgoing small crossovers, could be charitably described as inoffensive, but often merely looked frumpy and incoherent.  2021 Buick Envision Avenir View 25 Photos Rather than the flow-for-flow's-sake design of the outgoing model, the 2021 boasts a more chiseled, angular look, especially in Avenir guise. It also boasts a redesigned cabin and a new suite of standard tech features, including standard forward collision warning, front pedestrian braking and rear park assist. Optional goodies include a HUD, wireless Android Auto and Apple CarPlay, and a hands-free power liftgate. Avenir models bake in several of the standard Envision's optional upgrades, including heated and ventilated front seats, a massaging driver's seat and heated outboard rear seats. It also offers an optional adaptive suspension.  “The all-new 2021 Envision is a tremendous opportunity for the brand,” said Duncan Aldred, global vice president for Buick and GMC. “With strong, differentiated designs, and a combination of advanced technologies and premium appointments, it will stand apart in one of the industryÂ’s most competitive segments.” Buick has also nailed down the specs on the Envision's updated powertrain. The 2.0-liter turbo engine will make 228 horsepower and 258 pound-feet of torque. Front-wheel drive is standard, with GM's twin-clutch all-wheel-drive system available as an upgrade. Both models get a nine-speed automatic gearbox.  As confirmed previously with the release of Buick's 2021 order guide, the Envision starts at $32,995 (including destination) and is available at dealers now. We expect to get our hands on one for a more thorough evaluation some time in the coming months. Stay tuned.