Jump to content
News
Reviews
Discussons
Activity
Create New...
Close
  • William Maley
    William Maley

    By William Maley •

    GM Seeks An Exemption To Exclude Buick Envision from Tariffs

      That 25 percent tariff could really hurt the Envision

    The Buick Envision finds itself in a tough spot. General Motors has been exporting the model to the U.S. since 2016. But with the on-going trade-war between the U.S. and China, it means the Envision could smacked with a 25% percent tariff. That is why GM is asking for exemption on the model.

    In a statement provided to Reuters, GM said that it filed the exemption request on July 30th to the U.S. Trade Representative. In the request, GM makes some sound arguments as to why the Envision should be excluded.

    Price is major factor. If the vehicle is hit with a 25 percent tariff, GM would be forced to pull it from the U.S. unless it wants to a take serious loss on each model.

    Why not build it here? The Envision has been a target of critics of Chinese-made goods, including leaders of UAW. GM explains that the sales volume of the Envision doesn't justify moving it to the U.S. Last year, Buick only sold 41,040 Envisions in the U.S. In China, Buick moved about 210,000 models. In addition, the current Envision is reaching the end of its current lifecycle before the company could make the preparations to build the model here.

    GM also makes the argument that the loss of the Envision would put them in a distinct disadvantage against foreign competitors such as Acura and Volvo.

    You can check out GM's request on regulations.gov website, which is tracking requests for exclusions from the Section 301 tariff.

    If the Envision does get hit with a 25 percent tariff, GM has already taken some steps to relieve some of the pain. Before the higher import tariffs went into affect, GM shipped in a six-month supply of Envisions that would be hit with the much smaller 2.5 percent tariff. This should keep dealers happy in terms of stock and not having to deal with a higher price. 

    Source: Reuters, Regulations.gov

    Go to articles

    User Feedback

    Recommended Comments



    Drew Dowdell
    8 hours ago, riviera74 said:

    I suspect that Honda has high dealer inventory turnover because Honda tends to make too few vehicles (given demand) in order to support those MSRPs.  Same with Acura, I suspect.

    This is true... Honda intentionally under-produces to avoid a situation with excess inventory.  They brag about having the lowest rental fleet sales in the industry partially for that reason.  I don't think they care about winning the volume war, they aim for per-unit profitability, thus aim to keep margins high, not just the lights on.

    • Like 1
    Link to comment
    Share on other sites
    G. David Felt

    Latest story on auto's that the American Public do not want. Dated April 17th 2018

    https://247wallst.com/special-report/2018/04/17/cars-americans-dont-want-to-buy-3/

    #15 Buick Envision Avg days on lot 161.8

    #14 Cadillac ATS Avg days on lot 164.9

    #13 Cadillac XTS Avg days on lot 165

    #12 Buick Cascada Avg days on lot 167.3

    #11 Hyundai Genesis Avg days on lot 169.2

    #10 Cadillac CTS Avg days on lot 172.3

    #9 Buick LaCrosse Avg days on lot 175.9

    #8 Jeep Patroit Avg days on lot 176.0

    #7 Buick Regal Avg days on lot 177.7

    #6 Toyota Yaris Avg days on lot 178.4

    #5 Nissan Quest Avg days on lot 185.1

    #4 Chrysler 200 Avg days on lot 187.4

    #3 Volkswagen CC Avg days on lot 189.4

    #2 Dodge Dart Avg days on lot 207.8

    #1 Buick Verano Avg days on lot 223.6

    Buick was the top slow selling auto line in 2017. This they state is due to Americans having lost their love of sedans and coupes.  Buick Envision is the only CUV on the top 15 list and they believe this is due to inventory issues based on a lack of diverse versions as the bulk of them are fully loaded high priced models that get large discounts at the end of the year.

    Interesting point made is that the Cadillac ATS is the only car to be on the list since 2015 and is a head scratcher as they say it is a superior driving machine compared to BMW. 

    This was compiled based on 2017 data from Kelley Blue Book. They took the average number of days a model sat on the dealer's lot before being sold.

    • Haha 1
    Link to comment
    Share on other sites
    ccap41
    12 minutes ago, dfelt said:

    This they state is due to Americans having lost their love of sedans and coupes. 

    Oh yeah because Buick was the world's leader in coupe sales just a year or two ago. 

    • Haha 1
    Link to comment
    Share on other sites
    G. David Felt

    Story is a year old, but I have to say has some valid points made.

    https://www.cnbc.com/2017/04/25/cars-are-sitting-on-the-lot-longer-even-as-dealers-sweeten-the-offers.html

    They talk about how the average MSRP from all auto companies is now based on a 10.5% incentive level in the suggested retail price. This tells me that instead of selling a solid auto at a reasonable price, they are jacking up the price to then tear it down with huge incentive to artificially make one think they are getting a great deal.

    I would rather have them sell a few less auto's at higher ATP than be the volume leader.

    • Agree 1
    Link to comment
    Share on other sites
    riviera74

    Move the metal is what brought GM to BK nine years ago.  Never forget that lesson.  GM generally (and Buick in particular) really needs to cut back on production just so dealers can clear inventory.

    • Like 1
    Link to comment
    Share on other sites
    Drew Dowdell
    15 hours ago, Guest Potluck said:

    why should Buick get an exemption but VOLVO or Ford not?

    Because 'Merica.

    But you have a decent point... would this change Ford's idea of building Focus in China. 

    Link to comment
    Share on other sites
    smk4565
    On 8/4/2018 at 10:26 AM, ocnblu said:

    Well then, Obama's team should have "leveraged" GM to kill Buick and let Pontiac live.

    Uh, no.  The Chinese auto industry is bigger than the American auto industry.  Buick is here because of China and I think GM sold more cars in China than it did in the USA last year.  GM would have gone bankrupt again if Obama took away their Chinese business.

    • Haha 1
    Link to comment
    Share on other sites
    smk4565
    2 hours ago, dfelt said:

    Latest story on auto's that the American Public do not want. Dated April 17th 2018

    https://247wallst.com/special-report/2018/04/17/cars-americans-dont-want-to-buy-3/

    #6 Toyota Yaris Avg days on lot 178.4

    #5 Nissan Quest Avg days on lot 185.1

    #4 Chrysler 200 Avg days on lot 187.4

    #3 Volkswagen CC Avg days on lot 189.4

    #2 Dodge Dart Avg days on lot 207.8

    #1 Buick Verano Avg days on lot 223.6

     

    Interesting point made is that the Cadillac ATS is the only car to be on the list since 2015 and is a head scratcher as they say it is a superior driving machine compared to BMW. 

    Wait, Toyota still has the Yaris on sale?  

    That list is littered with Cadillac and Buick’s because they over built and the sales were dismal.  You don’t see any BMW, Audi or Mercedes or Acura or Lexus sedans on that list so it goes beyond “people just don’t buy sedans anymore.”

    The ATS all around isn’t a good enough product to drive demand, plus it doesn’t say BMW on it, so people don’t want it.   Cadillac’s biggest problem is image.  Take away the product and say “I drive a Cadillac” “I drive a BMW” or “I drive a Tesla” and which seems like the most envious statement?  

    For the most part, people don’t want Cadillacs, they buy them because they “got a deal” and can feel some sense of victory in getting $10,000 off sticker.

    Edited by smk4565
    Link to comment
    Share on other sites
    Drew Dowdell
    7 minutes ago, ccap41 said:

    Yeah, when my Escape got wrecked my rental was a Yaris. It was a big ole POS. 

    I think that would have been the old Yaris... you're not wrong about it being a POS, but it's not the better Mazda built one available today. 

    • Agree 1
    Link to comment
    Share on other sites
    Suaviloquent

    they sent 6 mos of Envision stock and Envisions stay about 5 1/3 mos on the lot before selling.

    Talk about over production. The car is over produced in China, and I believe now the real reason why the Envision came to U.S. market is because it didn’t sell as well as GM had hoped. 

    The Envisions competitors in China are the same as here.

    Link to comment
    Share on other sites
    ocnblu

    ocnblu 3,552

    Posted (edited)

    6 hours ago, smk4565 said:

    Uh, no.  The Chinese auto industry is bigger than the American auto industry.  Buick is here because of China and I think GM sold more cars in China than it did in the USA last year.  GM would have gone bankrupt again if Obama took away their Chinese business.

    Duh smk... the plan is to build cool Pontiacs for North America and for export/manufacture to China simply affix them with waterfall grilles, simulated wire wheel covers, ventiport hoods, crushed velour interiors, landau roofs and non-straked taillights for the Chinese.  I do not care one bit if China gets a rebadged "Buick" that could be sold as something more desirable here.

    Edited by ocnblu
    Link to comment
    Share on other sites
    riviera74
    36 minutes ago, ocnblu said:

    Duh smk... the plan is to build cool Pontiacs for North America and for export/manufacture to China simply affix them with waterfall grilles, simulated wire wheel covers, ventiport hoods, crushed velour interiors, landau roofs and non-straked taillights for the Chinese.  I do not care one bit if China gets a rebadged "Buick" that could be sold as something more desirable here.

    WOW. 1985 called: they want their old GM back.

    • Haha 3
    Link to comment
    Share on other sites
    regfootball
    23 hours ago, Suaviloquent said:

    they sent 6 mos of Envision stock and Envisions stay about 5 1/3 mos on the lot before selling.

    Talk about over production. The car is over produced in China, and I believe now the real reason why the Envision came to U.S. market is because it didn’t sell as well as GM had hoped. 

    The Envisions competitors in China are the same as here.

    EXCITEMENT!!!!!

     

    image.png

    • Haha 1
    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.

    ×

  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • G. David Felt
      Random Thoughts Thread

      By G. David Felt · Posted

      Those that cannot accept a multi-cultural world and immigration deserve to lose everything. I will stay professional, but believe that our North American Economy is about to get far worse over the long term than it is now. It is amazing how people do not seem to realize that the first two years of a new president is dealing with the ramifications of the last president. The high inflation was due to the failed policies of those before. We now have low unemployment and a strong economy. Will be interesting to see how it ends.
    • oldshurst442
      Random Thoughts Thread

      By oldshurst442 · Posted

      I say, let it get worse.  The people have spoken and this is what the MAJORITY voted for.  He even got the popular vote.  Therefore the people of America have spoken.   This is what they want.  This is what they feel comfortable with.   But I dont want to hear ANY whining from ANYBODY about what possibly may happen with him Him in power.  Fool me once,  shame on you!  Fool me twice, shame on me?   Technically this is how that saying goes.  But you never know. Maybe it really IS the lefty libtards that are the problem.   Hopefully it IS the lefty libtards that are the problem and the Messiah Trump will BE the solution to ALL of our problems.   I will be the first one to apologize if He actually does fix America's and Canada's problems.  And unite ALL of the world and the world gets to sing Kumbaya ALL in unison. Hopefully He is the next coming of Christ.   Keeping my fingers crossed but I aint holding my breath if you know what I mean.   
    • G. David Felt
      Random Thoughts Thread

      By G. David Felt · Posted

      @oldshurst442 This pretty much sums up just how bad it is going to get. Trump's economic plans would worsen inflation, experts say | AP News
    • oldshurst442
      Random Thoughts Thread

      By oldshurst442 · Posted

      Not just iPhones... He tariffed Canadian wood the first time around as Pres and the prices of wood skyrocketed so American home builders bought American wood which was and is more expensive than Canadian wood.  I guess that is good for American wood producers. But for the fact that house prices also skyrocketed.  And considering that Canada and US have a more or less good trading thing going on...so not that good.  Not for the US and not good for Canada.  But Donald thinks otherwise. And all the folk that voted for him this time around think that the economy will get better?  I hope so for their sake. But Elon and Jeff B's billions rose quite a bit upon the announcement of his re-election.  I wonder if those  people that voted for him, I wonder if their wealth also rose instantly?    You poor bastards... You have no idea what is coming to you... (those that voted for him.  With the excemption of the rich of course)     Donnie Rides Again
    • oldshurst442
      Airplanes

      By oldshurst442 · Posted

  • Who's Online (See full list)

  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

I've whitelisted
Continue without support

Write what you are looking for and press enter or click the search icon to begin your search