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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 Cascada dies the death everyone expected

Four months ago, the Grim Reaper came for the Opel Cascada. Groupe PSA, which bought Opel from General Motors in 2017, announced the two-door convertible would be phased out. On sale here since 2016 as the Buick Cascada, GM told us it had nothing to say about PSA's announcement. On Friday, the U.S. automaker spoke up, telling Automotive News the droptop "has reached the end of its originally-planned lifecycle and 2019 will be the last model year offered. Dealers have been notified and many will have stock through the rest of this year." Buick paid big money to advertise its first convertible since the 1991 Reatta. Buick threw money at Super Bowls ads and a gaggle of celebrities two years in a row. And when sales began in 2016, Buick enlisted The Unbreakable Kimmy Schmidt star Ellie Kemper for a series of television and online spots. U.S. dealers have been instructed to file final orders this month, and production will continue at the factory in Poland until this summer. Yet the fact we're in February and dealers are predicted to have stock for the next ten months says everything necessary about the state of play. The brand sold roughly 17,000 units in three years, and both 2017 and 2018 saw sales declines of more than 25 percent. Buick didn't expect huge sales from the import, though, and the Cascada earned conquest buyers. A spokesman said, "The Cascada has played its role in the portfolio perfectly, outselling many other premium convertibles while bringing in [6 of every 10] buyers from outside GM." Last we heard, the LaCrosse ceases production next month. Unless the situation changes before the end of the year, Buick will have only the Regal on its passenger car books come 2020. GM will only have two convertibles in its portfolio worldwide, the Chevrolet Camaro and Corvette. Related Video:

General Motors shaking up its marketing... again

One of the things that dogs the full comeback of General Motors is the instability of its marketing. That part of the automaker got yet another big shakeup today when GM confirmed what I have been tweeting for a few days - strong rumors that the Chevrolet and Cadillac ad accounts are walking to new ad agencies.
Cadillac, GM's luxury brand, is going into review from Fallon Worldwide, Minneapolis and the indications are that Campbell-Ewald, Chevy's old ad shop, will end up with most or all of it. C-E just announced that it was moving from its long-time home in Warren, MI to a new downtown Detroit office next to Ford Field, just blocks from GM.
The other shoe to drop shortly will be the shift of GM's most important brand, Chevy, from Goodby, Silverstein & Partners of San Francisco to McCann-Erickson of Troy, MI. McCann used to be the agency for Buick and GMC, as well as GM's corporate advertising, and has retained some pieces of business over the last few years. Sources have even told us that it was McCann that did a lot of the creative work on Chevy's new ad platform, Find New Roads. (Not to be confused with a former McCann tagline for Saab, "Find Your Own Road.")