Buick finally made cars that Americans want … and came the duties
|
The General Motors Buick picks up. Sales of the once -cumbersome brand increased by 39% in the first quarter with an updated range of compact SUVs, including Envision, Encore GX and Envista – its best -selling model for less than $ 30 thousand.
And then they hit President Donald Trump’s duties.
Car customs will hit the most working Americans
The three most popular Buick models are manufactured outside the United States. Envista and Encore GX – in South Korea, and Envision SUV – in China. This means that all three are now the subject of strict duties that could add thousands of dollars to the prices of auto -lodics in the United States.
- South Korea -manufactured models of Buick face 27.5% duties
- ENVISION from China faces a steep increase in the duty of 47.5% with a 25% duty of cars, 20% « duty for fentanyl coming from China » and previously existing 2.5% car tax, according to Barclays analysis.
This is a bad news for Buick traders who have been excited about the latest brand models, which has been struggling to get rid of a stereotype for years, which may not be applicable anymore.
Analysts believe that higher prices can stop the inertia that has finally accumulated Buick, and even threaten the company’s survival.
| « The last wave of Buick cars is affordable, with good quality, decent vehicles and the ruin of all this with a loss of price advantage can shake Buick as an active subject in the US, » said Sam Fiorani, Vice President of Autoforecast Solutions. |
Trump’s duties make car executives analyze the structure of their portfolios and judge whether the costs are worth the long -term to continue to import some models manufactured abroad. The duties introduced earlier this month have already led to some changes.
GM has decided to increase the manufacture of trucks in a factory in Indiana, and Stellantis, a truck and RAM jeep manufacturer, temporarily stopped production in two factories in Mexico and Canada.
On Tuesday, April 15, Barclays said it suggests that car manufacturers « would no longer offer vehicles that could not be sold profitable », including those imported into China and Korea as a result of car duties.
Especially for GM, Barclays expects the automaker to stop importing from Korea and China at about 450,000 vehicles due to duties costs.
- Barclays reduced by 40% GM’s profit forecast (before interest and tax costs) for 2025 based on the lower volume and the gross impact of customs duties of about $ 9.5 billion.
- For her international competitor Ford Motor at Barclays, they are expecting 60% reduction With a gross effect of duties of about $ 7 billion (Ford delivers its Lincoln Nautilus from China.)
Affordable vehicles such as Envista and Chevrolet Trax, both coming from South Korea, will bear the biggest stroke from duties. The effects on affordable vehicles are concerned with the entire industry with its average price for a new vehicle in the United States, transferred to be paid by the end customer, « over $ 48 thousand », according to the COX Automotive research company. There, they expect the duties to cause 10% to 15% increase in prices of the affected models and a total jump of 5% in vehicles prices that are not subject to new mates.
Tesla sales are the weakest of 3 years-not just because of Musk’s policy
The Buick range has been replaced with new models – or with a refreshment of previous ones – in the last 20 months, which has caused an increase in sales. The brand’s annual sales in 2023 increased by 61%, and in 2024 – by another 10%, according to the company.
The appearance in 2023 on Envista, a small SUV for $ 23,800, returned interest to the brand. A new style for the market last year, ENVISION, a compact SUV, starting at $ 36,500, further enhanced this effect. « Envision is the bestseller right now, » said Jeff Leite, a GMC and Buick dealer in Detroit. « After they showed it in it, he flew away. »
| The Buick’s market share in the US jumped from 0.8% in 2022 to 1.1% in 2024 and 1.6% in the first quarter of 2025, according to Edmunds.com. |
Buick has « probably the strongest momentum they have been dialing for decades, » said Iven Drury, director of forecasts at the Edmunds research firm. « If this inertia is slowed or stopped, then it is not a nail in the ark, but a truly spoiling something good … It really kills the dream of returning a historical and important name in the US automotive industry. »
While the World Trade War continues, GM must also take into account the difficulties it faces in China, a leading market for the Buick brand. GM and other foreign car manufacturers in China are struggling to market, outpaced by the country -made electric cars
Buick sales have declined in China by 65% from 2020 to 2024, according to Telemetry, a car consulting firm in the Detroit region. With duties and market uncertainty in China, there is a « risk of brand survival, » Sam Abelsamide, Vice President of Insights at Telemetry, said.
