Tariff Tuesday - Buick's Tough Spot

[Drew Dowdell]

Last week, April 15th, Tax Day for those of us in the U.S., we started a new series called Tariff Tuesday. President Trump’s tariffs amount to one of the largest single increases in taxes on the American People in history. The tariffs which, if fully implemented, will raise $1.4 trillion in revenue, an increase per household of $1,900 to $7,600 per year. Trump's tariff policies change daily, sometimes hourly, so as always, this information is correct for at least 15 minutes after publication. Each week we document the effects the tariff have or could have on the U.S. automotive industry.  Last week we made the case that under Trump's tariff policies, affordable sports cars are dead.

Prediction: Buick - Killed in the US while Killing it in China

Buick is in a bit of a pickle. The number of models they field in the U.S. has dwindled down to just four.  In spite of the decrease in offerings, the brand has shown growth in recent years with a significant jump of 39% in the first quarter of 2025.  It seems as though Americans were catching on to Buick's new offerings.  Buick specializes in inexpensive but premium-feeling small and medium-sized crossovers with just the U.S.-built Enclave filling the large crossover spot. However, Buick's best sellers all come from overseas.  

The Encore GX is Buick's best seller with 58,239 units sold in 2024. The second runner up is the Buick Envista at 51,316 units.  These two models account for more than 50% of all Buick sales in the U.S.  Both models are built in South Korea. The Buick Envision is their third best seller (47,340) and accounts for about a third of all sales. It is built in China. The Enclave is their most expensive model. It is built in the US. 2024 sales numbers are distorted (26,400) as it was a model change-over year, but they have typically moved around 40,000 units a year.

The South Korean built Encore GX and Envista would face 25% tariffs, adding at least $6,000 - $7,000 to the base price of the vehicles.  This pushes the roughly $24,000 Envista and $26,000 Encore GX base prices to between $29,750 to $32,500 respectively.  The same currently goes for the Chinese-built Envision. While Trump has raised tariffs on most Chinese imports over 100%, vehicles and vehicle parts from China are under an exemption that keeps the tariff at "only" 25%.  The base price of the Envision is $36,500 and with the tariff would likely go over $45,000.

While these imported Buick models are excellent values at their current prices and Buick routinely tops the reliability charts, such significant price increases push these models into territory they where not intended to compete in. At nearly $30,000, a base Buick Envista would have to compete with the much larger, more capable, and just as nice U.S.-built Honda CR-V.

Across the Pacific, Buick is doing well in China. They have eleven models on sale today with six more coming on a new EV/PHEV/EREV platform showcased with the Buick Electra GS Concept. Buick and GM are making major inroads in the hot EV market their with 40% increases in EV/PHEV market share. They are also showcasing LFP batteries with faster charging technology than is currently available in the U.S.   Buick China is so confident in their new platform, they are launching an entire sub-brand called Electra that will feature these six new models.

We don't see how Buick can maintain its momentum in the US with massive price increases on its three most popular models that comprise most of their sales. Barclays estimates that GM will cease all imports from South Korea and China, totaling roughly 450,000 vehicles over multiple brands due to tariffs. Rather than on-shoring production, GM may just chose to shutter the brand in the U.S. entirely and let it live on solely in China. While Buick is no longer a major selling brand in the US, ending it removes choice and competition for American consumers. That increased cost and loss of choice are tied directly to the Trump tariffs.

 

 

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[Paolino]

Frankly, I'm upset over this. I've always had a soft spot for Buick.

[smk4565]

Buick is at risk of becoming Chrysler, a 1 model brand.  They can keep the Enclave since it is built here, and the XT6 is dying this year which might help sales.  They won't kill the brand since they don't want to buy out dealers, so you cut them down to 1 model and hope dealers opt-out.  

The Envista and Encore GX hit a sweet spot of small SUV at under $30k, but the tariffs would wreck that formula.  Although the Kia Seltos, Hyundai Kona,  VW Taos are all imported too and would suffer the same problem.  

[G. David Felt]

Buick like Chrysler are Dead Auto Brands stagnant. The Tariffs are just stupid and if you do the full 245% that has been in the news makes Buick dead, dead, dead.

Then we have Mazda announcement that they have stopped all production of the CX50 model for the Canada market as they are not going to deal with the Tariffs to go over the border. As such, people laid off, less product, but Canada will now get their CX50's from Japan according to the news.

Buick like Mazda are now casualties of idiot leadership by a person who never has had to work hard let alone build anything in a global market.

[ccap41]

Buick couldn't be a more useless brand in the US. They only make different branded Chevys, GMCs and Cadillacs. Do they offer anything different than Chevy, GMC or Cadillac? 

[Robert Hall]

23 hours ago, ccap41 said:

Buick couldn't be a more useless brand in the US. They only make different branded Chevys, GMCs and Cadillacs. Do they offer anything different than Chevy, GMC or Cadillac? 

No, Buick today is just a bunch of ugly generic CUVs.  Nothing unique or memorable, just bland appliances. Likely well built and reliable, but 0% style.  Buick has lost the plot.

I'll admit I'm a bit older, but to me these  are Buicks...the new stuff has zero appeal to me.

 

Edited 23 hours ago by Robert Hall

[ccap41]

31 minutes ago, Robert Hall said:

No, Buick today is just a bunch of ugly generic CUVs.  Nothing unique or memorable, just bland appliances. Likely well built and reliable, but 0% style.  Buick has lost the plot.

Yeah, their lineup does absolutely nothing for me. I'm sure they're adequate vehicles, but why buy them over a Chevy or GMC? Why have a whole separate brand for lazy badge-engineered vehicles? 

If they at least offered powertrain options that aren't available on their Chevy or GMC counterparts, I could get behind them more. Maybe offer conventional hybrids, plug-in hybrids or more powerful tunes of their respective turbo engines. SOMETHING to differentiate them. 

[G. David Felt]

1 hour ago, ccap41 said:

Yeah, their lineup does absolutely nothing for me. I'm sure they're adequate vehicles, but why buy them over a Chevy or GMC? Why have a whole separate brand for lazy badge-engineered vehicles? 

If they at least offered powertrain options that aren't available on their Chevy or GMC counterparts, I could get behind them more. Maybe offer conventional hybrids, plug-in hybrids or more powerful tunes of their respective turbo engines. SOMETHING to differentiate them. 

My sister has the Envision from China, previously GMC, has had less problems with the Buick than the GMC, so for whatever reason, the Chinese made SUV is more reliable than the US built version. Weird, but I get it, she is going to wait till more Buicks can come back in without the stupid tariffs before upgrading again.

Other than that noticeable issue, I totally agree with you and Robert.

[Drew Dowdell]

On 4/23/2025 at 3:35 PM, ccap41 said:

Buick couldn't be a more useless brand in the US. They only make different branded Chevys, GMCs and Cadillacs. Do they offer anything different than Chevy, GMC or Cadillac? 

 

7 hours ago, Robert Hall said:

No, Buick today is just a bunch of ugly generic CUVs.  Nothing unique or memorable, just bland appliances. Likely well built and reliable, but 0% style.  Buick has lost the plot.

Oddly enough it's the Envision, the Chinese one, that is the most unique of the Buick lineup. While it is plaform-shared with the Terrain and 'Nox, it has different dimensions in and out and does feel like a significantly more premium vehicle.   Unless someone is really hung up about brand and RWD, I would recommend an Envision Avenir over a X3 or GLC any day. I can't say the same about a Terrain Denali though.

[G. David Felt]

This is interesting, @A Horse With No Name saw this today on Instagram as it was Mexico plated BYD driving in California.

https://www.instagram.com/reel/DHjpyzky6k3/?igsh=MTl0a3lxOGR0YjZtMA==

[Drew Dowdell]

9 hours ago, G. David Felt said:

This is interesting, @A Horse With No Name saw this today on Instagram as it was Mexico plated BYD driving in California.

https://www.instagram.com/reel/DHjpyzky6k3/?igsh=MTl0a3lxOGR0YjZtMA==

Yeah, BYD is already in central and south America.

[ccap41]

12 hours ago, Drew Dowdell said:

 

Oddly enough it's the Envision, the Chinese one, that is the most unique of the Buick lineup. While it is plaform-shared with the Terrain and 'Nox, it has different dimensions in and out and does feel like a significantly more premium vehicle.   Unless someone is really hung up about brand and RWD, I would recommend an Envision Avenir over a X3 or GLC any day. I can't say the same about a Terrain Denali though.

So they have one vehicle that's sliiightly different but still isn't more desirable than a Terrain Denali. Sooooo it's still just a useless brand. Okay, it isn't useless for GM. Everything is paid for and they just charge more than a Chevy for it, so I see their business case. I just don't understand their case as a consumer. 

[Drew Dowdell]

4 minutes ago, ccap41 said:

So they have one vehicle that's sliiightly different but still isn't more desirable than a Terrain Denali. Sooooo it's still just a useless brand.

Eh, no. The Envision is more desirable to a different customer. It has a substantially nicer interior, better sound isolation, better standard engine, and frankly, looks a lot better too.  I'd buy an Envision, I wouldn't buy a Terrain Denali over it.

The Enclave has less powertrain differentiation, but the interior, again, is substantially nicer. GMC did up the niceness of the Denali, but the Buick is above it still.

The Encore GX is the one that is too close for comfort to the Trax. The Envista is a different style of vehicle than anything Chevy has.

[ccap41]

6 minutes ago, Drew Dowdell said:

I'd buy an Envision, I wouldn't buy a Terrain Denali over it.

I guess I misunderstood your last comment. To me, your last line made it sound like you'd still take a Terrain Denali over it. 

Edited 4 hours ago by ccap41

[Drew Dowdell]

1 minute ago, ccap41 said:

I guess I misunderstood your last comment. To me, your last line made it sound like you'd still take a Terrain Denali over it. 

Yeah, I meant that if Brand or RWD wasn't a concern, an Envision Avenir would be a great alternative to an X3 or GLC of the same price.  The Terrain Denali wouldn't be.... if for no other reason than you're stuck with that weaksauce 1.5T. 

 

And before @smk4565 comes in here talking about 0-60 or horsepower of the Envision v. X3, the buyer I'm talking about doesn't care about those things. Buick geared the Envision right so that the torquey 2.0T always feels effortless to drive. Will it lose to an X3 in a drag race? Yes, but the people buying these just want quiet and effortless power to get out of the Target parking lot.

[G. David Felt]

1 hour ago, Drew Dowdell said:

Yeah, I meant that if Brand or RWD wasn't a concern, an Envision Avenir would be a great alternative to an X3 or GLC of the same price.  The Terrain Denali wouldn't be.... if for no other reason than you're stuck with that weaksauce 1.5T. 

 

And before @smk4565 comes in here talking about 0-60 or horsepower of the Envision v. X3, the buyer I'm talking about doesn't care about those things. Buick geared the Envision right so that the torquey 2.0T always feels effortless to drive. Will it lose to an X3 in a drag race? Yes, but the people buying these just want quiet and effortless power to get out of the Target parking lot.

That last line is exactly why my sister who is an in home care open wound nurse bought, quiet and effortless for her comfort of driving from home to home to take care of people. Could care less about speed.

[A Horse With No Name]

3 hours ago, Drew Dowdell said:

Yeah, BYD is already in central and south America.

They are huge down there.

23 hours ago, Robert Hall said:

No, Buick today is just a bunch of ugly generic CUVs.  Nothing unique or memorable, just bland appliances. Likely well built and reliable, but 0% style.  Buick has lost the plot.

I'll admit I'm a bit older, but to me these  are Buicks...the new stuff has zero appeal to me.

 

I find great appeal in these but they are from a bygone era. No one will spend 60K to restore a 4 door land yacht like that blue Buick when it would bring ten grand tops resale. Which is why demo derbies are still full of cars like that.

Only modern vehicles with much appeal to me are midsized pickups and things that can get me to a hiking trail reliably, like a Subaru Outback/Crosstrek or something.

On 4/23/2025 at 1:11 PM, G. David Felt said:

Buick like Chrysler are Dead Auto Brands stagnant. The Tariffs are just stupid and if you do the full 245% that has been in the news makes Buick dead, dead, dead.

Then we have Mazda announcement that they have stopped all production of the CX50 model for the Canada market as they are not going to deal with the Tariffs to go over the border. As such, people laid off, less product, but Canada will now get their CX50's from Japan according to the news.

Buick like Mazda are now casualties of idiot leadership by a person who never has had to work hard let alone build anything in a global market.

It is only going to get worse.

On 4/22/2025 at 8:04 PM, Drew Dowdell said:

Last week, April 15th, Tax Day for those of us in the U.S., we started a new series called Tariff Tuesday. President Trump’s tariffs amount to one of the largest single increases in taxes on the American People in history. The tariffs which, if fully implemented, will raise $1.4 trillion in revenue, an increase per household of $1,900 to $7,600 per year. Trump's tariff policies change daily, sometimes hourly, so as always, this information is correct for at least 15 minutes after publication. Each week we document the effects the tariff have or could have on the U.S. automotive industry.  Last week we made the case that under Trump's tariff policies, affordable sports cars are dead.

Prediction: Buick - Killed in the US while Killing it in China

Buick is in a bit of a pickle. The number of models they field in the U.S. has dwindled down to just four.  In spite of the decrease in offerings, the brand has shown growth in recent years with a significant jump of 39% in the first quarter of 2025.  It seems as though Americans were catching on to Buick's new offerings.  Buick specializes in inexpensive but premium-feeling small and medium-sized crossovers with just the U.S.-built Enclave filling the large crossover spot. However, Buick's best sellers all come from overseas.  

The Encore GX is Buick's best seller with 58,239 units sold in 2024. The second runner up is the Buick Envista at 51,316 units.  These two models account for more than 50% of all Buick sales in the U.S.  Both models are built in South Korea. The Buick Envision is their third best seller (47,340) and accounts for about a third of all sales. It is built in China. The Enclave is their most expensive model. It is built in the US. 2024 sales numbers are distorted (26,400) as it was a model change-over year, but they have typically moved around 40,000 units a year.

The South Korean built Encore GX and Envista would face 25% tariffs, adding at least $6,000 - $7,000 to the base price of the vehicles.  This pushes the roughly $24,000 Envista and $26,000 Encore GX base prices to between $29,750 to $32,500 respectively.  The same currently goes for the Chinese-built Envision. While Trump has raised tariffs on most Chinese imports over 100%, vehicles and vehicle parts from China are under an exemption that keeps the tariff at "only" 25%.  The base price of the Envision is $36,500 and with the tariff would likely go over $45,000.

While these imported Buick models are excellent values at their current prices and Buick routinely tops the reliability charts, such significant price increases push these models into territory they where not intended to compete in. At nearly $30,000, a base Buick Envista would have to compete with the much larger, more capable, and just as nice U.S.-built Honda CR-V.

Across the Pacific, Buick is doing well in China. They have eleven models on sale today with six more coming on a new EV/PHEV/EREV platform showcased with the Buick Electra GS Concept. Buick and GM are making major inroads in the hot EV market their with 40% increases in EV/PHEV market share. They are also showcasing LFP batteries with faster charging technology than is currently available in the U.S.   Buick China is so confident in their new platform, they are launching an entire sub-brand called Electra that will feature these six new models.

We don't see how Buick can maintain its momentum in the US with massive price increases on its three most popular models that comprise most of their sales. Barclays estimates that GM will cease all imports from South Korea and China, totaling roughly 450,000 vehicles over multiple brands due to tariffs. Rather than on-shoring production, GM may just chose to shutter the brand in the U.S. entirely and let it live on solely in China. While Buick is no longer a major selling brand in the US, ending it removes choice and competition for American consumers. That increased cost and loss of choice are tied directly to the Trump tariffs.

 

 

 

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Yep, to be replaced by BYD and other folks.