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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.

Buick Encore blitzes first-year sales predictions

With its first full year of sales in the bag, it's safe to say that Buick has a hit on its hands with the Encore. US buyers have snatched up 31,046 of the small, premium crossovers since the Encore went on sale in January of 2013, while 97,311 were sold globally (not counting its counterparts from Opel and Vauxhall).
While we liked the Encore when we first drove it, we'll admit, we weren't sure how the tiny CUV would do. In fact, the first thing Executive Editor Chris Paukert wrote about the Encore was, "We admit it. We have no earthly idea how this whole thing is going to shake out." But it's done well, and has been subject to heavy demand over the past year, blowing away the estimates of analysts, who, according to an August story from Automotive News, projected no more than 18,500 units would be sold in 2013.
"Right out of the gate, demand for the Encore was high," Tony DiSalle, vice president of Buick marketing said in a statement. "It accounted for most of the segment's growth last year and that's because it offers the right safety, technology and features in the right-sized vehicle for many customers."

GM's MPG overstatement could affect 2 million vehicles

Late last week, GM admitted that three of its large SUVs fuel economy window stickers did not match their actual efficiency ratings, and so the vehicles couldn't be sold. The stickers on the 2016 Chevy Traverse, GMC Acadia, and Buick Enclave said their ratings were one to two miles per gallon better than they should have been. Officially, the number of affected vehicles sits at about 60,000. But Consumer Reports makes a good point: what's up with all of the previous model year SUVs that are basically the same vehicle? To wit: the 2016 model year vehicles are not substantially different than the 2015 or the 2014, or even going all the way back to 2007. On the EPA's fuel economy website, all of these older models will "have better stated fuel economy numbers than the new vehicles in GM's dealerships," Consumer Reports noted. CR's best point, and the one that makes the 60,000 number potentially grow to 2 million if all of the vehicles built on this platform are affected, is that "[i]t seems unlikely that the company would change the powertrain on these carryover models so late in their model cycles in a way that would cause a dramatic, negative impact on fuel economy." GM says that earlier model year SUVs are not affected and the EPA did not respond to CR's question about the potential for more discrepancies. We've seen automakers reverse course before, so if GM has to come out with a mea culpa soon, don't be surprised. GM is rushing corrected stickers to dealers so that the SUVs can be sold again, but a fix for the already-sold vehicles could be trickier to solve. Related Video: Related Gallery 2013 GMC Acadia View 16 Photos News Source: Consumer Reports Government/Legal Green Buick Chevrolet GMC Fuel Efficiency mpg gmc acadia chevy traverse