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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.

GM expanding Lansing Lambda CUV plant

Considering that crossovers are a rapidly growing portion of the US auto market, it's not surprising to hear that General Motors is preparing to build even more of them. The company is investing $63 million to expand its Lansing Delta Township Assembly plant that builds Lambda platform CUVs like the Chevrolet Traverse, GMC Acadia and Buick Enclave.
According to GM, the expansion will add roughly 263,000 extra square feet of space to the plant. Of that, 181,000 square feet will be for an updated body shop with cutting-edge robots. There will also be 54,000 square feet of additional room in the paint shop and 28,000 square feet of more area for general assembly.
GM isn't saying as much, but there is the possibility that this extra space could allow for additional models produced at the factory. Cadillac reportedly dropped plans to build a three-row SUV on the Lambda platform earlier this year, however, dealers for the luxury brand were recently pitched the possibility of adding large and small CUVs, an ATS convertible or a sedan below the ATS.

Buick boss shuts down idea of importing Opel Adam

Anyone hoping for Buick to sell small city cars in America, you're not going to like this story. Buick boss Duncan Aldred has effectively ruled out importing the stylish Opel Adam city car for US drivers. Yep, this is us being bummed. Admittedly, the business case for Adam is not as strong as it used to be. Gas is cheap and consumers have fallen back in love with the idea of high-riding crossovers instead of efficient cars. That's why Buick sold twice as many teeny, tiny Encore CUVs in 2015 as it did its smallest car, the Verano. With that in mind, slotting in another car, let alone one below the Verano, isn't a great idea. Of course, Aldred didn't come out and say as much, even though he campaigned for a US-market Adam in the past. "I very much did feel when I came over that that could really help accelerate the Buick brand story," the executive told Automotive News at last week's New York Auto Show. "I don't see that as much. Whether the market shifted or the fashion nature of those cars has changed, I don't know. But I wouldn't be looking for a small, B-segment car today." That, friends, is a real bummer. Adding a car like the Adam, even in a small, captive-import capacity would add a real dose of fun to Buick showrooms and (we're guessing) would bring in younger foot traffic. Related Video: