Are Americans Ready to Buy a vehicle Made in China?
IHS Automotive says its analysis leads it to believe GM is planning to start shipping a small SUV, the Buick Envision, back to the U.S.by next year. GM should stand by its declaration that it will build where it sells.
“The Envision should be made in the US by the workforce that saved GM in its darkest time, and UAW members intend to address this issue in contract talks”.
“We have not announced the Envision for any markets other than China, where it has been extremely successful to date”, Buick spokesman Nick Richards said in an email. “As a matter of practice, we don’t discuss future product plans”. Since GM’s 2009 bankruptcy and restructuring, the Detroit automaker has been investing heavily in reviving interest in Buick among U.S. buyers, and the Envision would be a good fit for that.
Buick introduced the midsize Envision SUV in China in fall 2014 and it’s been a strong seller.
Although U.S. sales of the China-built Envision seem fairly likely at this point, there are a few hurdles to clear.
So some critics of U.S.-China trade policy are concerned that China could soon take aim at capturing a significant share of the U.S. auto market, hurting output from U.S. plants.
News of the U.S. arrival of the Envision, which went into production last year in China, was reported on Monday by Automotive News. Offering more room than boring sedans and less ostentatious than giant fuel-chugging SUVs, crossovers have become the most popular new vehicle in the U.S. The cars are popular with families who don’t want to give in to the minivan but prefer more room for baby seats and groceries.
And GM, along with Ford Motor and Fiat Chrysler, is in contract negotiations with the United Auto Workers union.
It’s not clear how U.S. consumers would react to Chinese-made U.S.-brand cars.
GM has already said it will launch an as-yet unnamed vehicle at its Orion Township assembly plant in Michigan.
“As the Chinese market continues to slow down, they’re going to be looking for ways to keep the capacity going in China by exporting”, AutoPacific’s Sullivan said. That may not even matter much for the auto industry. “If there was any blowback, I would imagine it to be very short-lived”.