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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.

2020 Buick Encore GX revealed as a bigger smaller crossover

The crossover craze has taken root throughout the car industry, but especially at Buick. The company says that 90% of its sales are of the upright utilities. So it's no surprise the brand is adding yet another model to the line-up, the 2020 Buick Encore GX. Despite the name, the Encore GX doesn't appear to share anything with the current Encore, as GM says it uses a new platform. It's also larger than the regular Encore, though it's also smaller than the midsize Envision. One area in which its slightly bigger size benefits the GX is that it has nearly five more cubic feet of cargo space than the current Encore. Other details about the crossover are scant. Buick hasn't even said what engine or transmission will be used. Buick did say the Encore GX will feature automatic emergency braking with pedestrian detection and lane-keep assist as standard features, with the rear-camera mirror as an option. The current Encore will continue to be sold alongside the Encore GX, and it won't be replaced with the version shown at the Shanghai Auto Show. Pricing and availability will be announced later, along with other vehicle details.

Looking back at how and why GM saved Buick

Still uncomfortably fresh in our collective minds is 2008, the year when the US economy tanked, auto sales collapsed, and both General Motors and Chrysler endured federally managed bankruptcies. Then 2009, when, among other draconian measures, the government task forces dictating what they were compelled to do to earn taxpayer financial support ordered thousands of dealers cut and GM to discontinue four of its eight US brands. Three of those chosen for GM's axe were fairly obvious: off-road icon Hummer had become politically incorrect, Swedish-born Saab was a perennial money loser, and product-starved Saturn had sadly sagged after its strong early start. On the other hand, high-volume value brand Chevrolet, luxury Cadillac, and high-profit GMC seemed clear keepers. That left Pontiac and Buick, both boasting strong brand heritage and histories but both languishing at the time with lackluster image and sales. Most believed that "old man's car" Buick would be killed and once-youthful Pontiac and its performance image would be revived. So few understood why when exactly the opposite happened: Buick lived, Pontiac died. One key factor was Buick's long, distinguished history in China. In the early 20th century, many of that country's most influential citizens owned, drove, or were driven in Buicks. By 1930, one out of every six cars on the roads in Shanghai was a Buick. So when GM launched vehicle production at a Shanghai joint-venture plant in 1999, the chosen brand was Buick. Today it remains GM's best-selling brand in that fast-growing market. Another was an appealing new design direction that began with a shapely 2006 three-row crossover concept called Enclave. Inspired by the Buick Velite concept convertible of 2004, its curvaceous "form vocabulary," GM Design vice president Ed Welburn said at the time, previewed coming Buick production car and CUV design. "The body shape flows, like there's wind blowing over it," he enthused, adding that the Enclave concept's richly trimmed cabin foretold "a renaissance in interior design for GM." And when the production Enclave arrived for 2008, followed by platform siblings from Saturn and GMC (and later Chevrolet), it indeed caught the public's eye and started selling well. And once past GM's painful and embarrassing bankruptcy, Buick has been on a major roll. Continuing to sell strongly in China while growing substantially in the US, it has enjoyed four straight years of global sales records.