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GM seeks to exempt Buick Envision from U.S. auto tariffs

General Motors is seeking an exemption to a 25 percent U.S. tariff on its Chinese-made Buick Envision sport utility, the automaker said on Thursday, in a move to prevent the key model in the brand's U.S. lineup from becoming a victim of the U.S.-China trade war. 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. The Envision, assembled only in China, last year accounted for about 19 percent of Buick brand sales in the United States. GM said in a statement that it filed the request on July 30 with the U.S. Trade Representative. An official notice was posted on Thursday on the regulations.gov website, which is tracking requests for exclusions from the so-called Section 301 tariff on certain imported goods from China. 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 the "vast majority" of Envisions, about 200,000 a year, are sold in China. About 41,000 were sold last year in the United States. Because of the lower U.S. sales volume, "assembly in our home market is not an option" for the Envision, which competes with such midsize crossover vehicles as the Jeep Grand Cherokee and the Cadillac XT5. GM has taken other steps to soften the blow of tariffs, which hit just as the automaker had lowered the price of the Envision to make it more competitive. Ahead of the July 6 start for higher import tariffs, GM shipped in a six-month supply of Envisions at the much lower 2.5 percent tariff rate. Envision sales from April through June plunged to just 7,000 vehicles, while inventories climbed to more than 13,000 vehicles at the end of June. At the current sales rate, the Envision supply should be enough to keep many dealers stocked through the end of the year. GM had lowered prices by as much as $2,500 on the 2019 models, which it started shipping in late April. That means Buick's 2,000 U.S. dealers should have lower-priced Envisions to sell well into the fall. "The previous price point was too high" on the 2018 Envision, said Casey Clark, sales manager at Serra Buick GMC Cadillac in Washington, Michigan, in an interview.

Buick Envision Plus is a seven-seater tweener developed for China

Buick has filled the gap separating the Envision and the Enclave with a new crossover named Envision Plus. Launched at the Shanghai auto show, the three-row people-mover is scheduled to go on sale in China later in 2021. The plus-sized Envision stretches 190.7 inches long, 74.1 inches wide, and 66.7 inches tall, figures that make it around eight inches longer and two inches taller than the regular Envision. It's also a full 14 inches shorter, four inches narrower, and three inches lower than the Enclave, which is the biggest crossover in the Buick range. Designers didn't settle for stretching the Envision's wheelbase. They gave the Plus a more upright front end characterized by a taller grille, a flatter and longer roofline, and a redesigned rear end accented by a strip of bright trim that connects the lights. Only photos of the upscale Avenir trim (shown above) have been published so far. Images of the cabin are not available yet. We expect the Plus offers an interior close to the standard Envision's — from the driver's point of view, at least. The biggest difference is that the longer Envision lives up to its name by letting motorists take more gear or kids along for the ride thanks to a more spacious trunk and third-row seats. Power for the Envision Plus comes from a turbocharged, 2.0-liter EcoTec four-cylinder engine fitted with 48-volt mild-hybrid technology. Bolted to a nine-speed automatic transmission, the turbo-four is the same basic engine found in the American-spec Envision, where it develops 228 horsepower and 258 pound-feet of torque, but figures for the Plus weren't released. Front- and all-wheel-drive models will presumably be available. Buick will release pricing information closer to the model's on-sale date. As of writing, the Envision Plus has only been announced for China, where it will be built, but unverified reports claim it will arrive in American showrooms before the end of 2021. We've reached out to the company, and we'll update this story if we learn more. 2021 Buick Verano Pro GS View 5 Photos What else did Buick show in Shanghai? Buick no longer sells sedans in America, but it remains present in that segment on the Chinese market. In addition to the Envision Plus, it unveiled a model named Verano Pro developed specifically for China, built locally, and aimed at relatively young buyers. At launch, motorists will be asked to choose between the regular sedan and a sportier-looking variant that wears the storied GS emblem.

GM earnings rise 1% as buyers pay more for popular pickups

DETROIT — General Motors said Thursday that higher prices for popular pickup trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter. The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44. Quarterly revenue fell 2% to $36.06 billion, but still beat estimates. Analysts polled by FactSet expected $35.97 billion. Global sales fell 6% to 1.94 million vehicles led by declines in North America and Asia Pacific, Middle East and Africa. The company says sales in China were weak, and it expects that to continue through the year. In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM's most profitable market. Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year. "We think the fundamentals do remain strong, especially in the truck market," she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going. Light trucks accounted for 83.1% of GM's sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press. As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income. Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate. GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.