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How tariffs in China could cause a meltdown in the American South

While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.

J.D. Power: Mini, Lexus again offer most satisfying sales experience

JD Power has released its annual Sales Satisfaction Index Study, and once again Mini and Lexus have taken top honors. Overall, buyers are more satisfied with the auto-buying sales experience than they were last year, with those surveyed reporting an average score of 664 points on a 1,000-point scale. That's up from 648 in 2011. Dealer satisfaction also increased by five points over last year as well.
All told, Lexus brought home an index score of 737, which was high enough to put it atop the luxury brands for the second year in a row. JD Power says Infiniti came in second in that category with a score of 728 and Cadillac rounded out the podium with it's rating of 725. Speaking of Infiniti, that brand saw the single largest jump in sales satisfaction of any brand on the survey, popping up 52 index points over 2011.
Among mass-market brands, Mini ranked highest with a score of 712, followed closely by Buick with 706 and GMC farther down the line with 683. You can check out the full press release below for more information.

We hear Buick is testing a Regal wagon with focus groups

Rumors about a possible Buick Regal wagon have come and gone for the past few years, and today we have another one. A friend of Autoblog recently let slip that Buick is talking with customers and running focus groups of a new car against the Acura TSX wagon and an unnamed Volvo wagon. Of course the Buick model being used in the focus groups wasn't mentioned, but the Regal is the only Buick in the lineup of comparable size and with a wagon version overseas. Plus, we've heard that Buick told dealers a wagon is in the works at a meeting a few months ago. We reached out to Buick for comment, however no details were given. A Buick spokesperson told us, "By the end of 2017, we'll be revealing three more new models for a total of seven new Buicks in just 24 months." Of the seven new models, four have been launched: the Cascada, Encore, Envision and LaCrosse. Looking at Buick's current line-up, that leaves three models that haven't been updated yet: the Enclave, Regal and Verano. This is where a Buick Regal wagon could come in. We know the Enclave is definitely getting a replacement. The large crossover market is huge and GM has a platform for it. We're also expecting a new Regal sedan to come out next year. The Verano, however, is unlikely to see another generation. If the Verano goes away, that leaves an opening for a new Buick model. Rather than another sedan, Buick probably wants more crossovers, as the company said it expects its current line-up to bring in 70 percent of its sales. It could very easily add another CUV to the line-up by giving the Regal wagon the Volvo Cross Country treatment. Raise the ride height, gird it with plastic fenders and bumpers, and give the wagon a trendy name like "Tourx" or "Regal Tourx," which the company has already trademarked, and Buick's newest crossover is ready to go. In fact, GM has effectively already done this to the Regal's German sibling, the Insignia, in the form of the Insignia Country Tourer, pictured above. In summary, a CUV-like wagon could give Buick a trendy car in a hot class for a minimal investment. It would even provide Buick with a model that has no equivalents elsewhere in the GM stable, giving the company a bit more distinction. If the company does bring us a wagon version of the Regal, we would expect to see something next year, possibly with the reveal of the normal Regal variants.