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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 Envision crossover to premiere in China

Buick currently offers two crossovers: the compact Encore and the extra-large Enclave, leaving plenty of room to slot a mid-size crossover in between. And that's just what Buick is planning on doing. In China, anyway.
Previewed in the teaser above, Buick's upcoming new crossover is cloaked and nestled in between its aforementioned stablemates-to-be. Set to be unveiled in China sometime later this year, the model has been confirmed to wear the name Envision - at least in that market. That's the name which the concept version wore three years ago, but we're still waiting on word over whether that name will carry over to the US version or whether we should expect something different like Anthem. But we have to admit that Envision fits better in the brand's crossover naming scheme.
Shanghai GM isn't saying much about the Envision in the press release below, aside from it having "dynamic and assertive styling" backed by all-wheel drive and stop/start ignition. The last time Buick offered a mid-size crossover in North America was with the Pontiac Aztek-based Rendezvous that was discontinued seven years ago.

Is Buick America's most daring mainstream car brand?

Considering Buick as an adventurous automaker seems a little odd at first thought. But with little fanfare over the last several years, the marque is transforming itself from a brand often associated with elderly drivers to a nameplate willing to take chances in niche segments. The gamble is already paying off with 2014 sales up 11.4 percent in the US to 228,963 cars. Given recent product launches, this experimentation is only likely to continue. The key to the transformation at Buick is its willingness to explore the so-called white space, according to Automotive News; the term refers to niches in the market without rivals as a challenge. In addition, the brand's position in the near-luxury space means that its products are cross-shopped by a large swath of customers. Without having a specific competitor, Buick has more room to experiment within its segment. "Designers love designing Buicks because it's not a paint-by-numbers brand," said Andrew Smith, director of design at Buick and Cadillac, to Automotive News. The company's strategy of going where others haven't is best exemplified by the Encore. The subcompact, luxury crossover came to market early, and Buick found serious success with it. The tiny CUV was the automaker's fastest growing model last year with a 53 percent gain and 48,892 units sold. With the test a triumph, the Encore recently got a sibling in the US in the form of the Chevrolet Trax. The upcoming Cascada is taking a similar approach. The non-sporty convertible segment is practically empty in the US, and this slightly redesigned product from Opel has the opportunity to become a leader in its niche. Of course, Buick's biggest recent surprise was the Avenir concept at the 2015 Detroit Auto Show. The car's swooping shape and use of materials earned it two EyesOn Design Awards against some tough competition. While the company's intentions for this flagship sedan aren't entirely clear yet, the vehicle does "test some of the future design language that will come on the next generation of Buicks," according to brand boss Duncan Aldred to Automotive News, which is definitely something to look forward to. Featured Gallery Buick Avenir Concept: Detroit 2015 View 12 Photos Related Gallery Buick Avenir Concept View 23 Photos News Source: Automotive News - sub. req.Image Credit: Live photos copyright 2015 Drew Phillips / AOL Design/Style Buick Convertible Crossover Luxury buick encore buick cascada buick avenir