Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

GM bets Americans will buy cars made in China

by

CHICAGO Jan 11, 2016 - 12:00 am GMT+3
No Image
by Jan 11, 2016 12:00 am
General Motors (GM) will be placing a big bet the American public is willing to drive a car built in China when it unveils the Buick Envision on Sunday night. The largest U.S. automaker is certainly not trying to bring it to market quietly, as Buick's latest sport utility vehicle will be introduced at a lavish party on the eve of the Detroit Auto Show in the hopes of maximizing media coverage.

"We expect it to be a great success," Molly Peck, U.S. marketing director for Buick, told Agence France-Presse (AFP).

"It offers all the features and amenities of a luxury SUV. It's high quality, quiet, filled with advanced safety technology. The design is gorgeous. The interior execution is outstanding. And it's all at a price point that offers a great value." GM's decision to import the Envision from China - a first for a major automaker - has sparked outrage and is expected to become an issue in the 2016 presidential campaign.

The United Auto Workers union, which had lobbied to build the Envision in the United States, called the decision to import it from China a "slap in the face" to taxpayers who bailed GM out of bankruptcy in the wake of the 2008 financial crisis.

Republican presidential frontrunner Donald Trump has not yet seized on the issue, but given that he regularly rails against China for stealing American jobs analysts say it is only a matter of time.

"I suspect GM is counting on the product to trump the actual Trump," said Harley Shaiken, a professor at the University of California Berkeley who specializes in labor issues and the automotive industry.

General Motors has come a long way since it first tried importing vehicles from a developing country - Mexico - decades ago and it has systems in place to ensure that the Chinese-built Envision matches both U.S. and global standards, Shaiken said.

"GM is well aware of how a poor reputation in these early vehicles could have much larger impacts down the road," he told AFP. "This is a major event that opens a new era."

It makes good business sense for GM to import the Envision from China - it sold over 1.2 million Buicks in China last year and only 223,000 in the United States.

While the Envision will help boost those numbers by rounding out Buick's offerings in the fast-growing crossover segment, it is still only expected to reach sales of about 40,000 vehicles in the near term.

"GM's North America plants are just running full-out - there isn't a logical place to put that car," said Stephanie Brinley, an analyst with IHS Automotive.

"That doesn't mean that all Buicks will now and forever be built from China, or that General Motors will, as a general strategy, be bringing vehicles in from China. What it means is that GM has a global footprint and they will use it."

Most consumers probably will not even realize that the Envision was built in China, said Jessica Caldwell, an analyst with automotive website Edmunds.com.

"There may be some balking at first if people want to make an issue of it, but I imagine in the long run it won't be a deal breaker for a lot of people," she told AFP. "If the quality is good, I don't know if people are necessarily going to care."

One reason why it has taken so long for a major automaker to import vehicles from China is because they have been so busy trying to satisfy demand in that fast-growing market, said Jack Nerad, an analyst with Kelly Blue Book. "I don't think we're going to suddenly see a flood of Chinese-built vehicles, but I think we will see a few more," Nerad said in a telephone interview.

"A Chinese brand is a bigger reach than something with a very familiar label like a Buick label. I don't know that this market is crying out for new brands."
  • shortlink copied
  • RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    business
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    In photos: Best of Euro 2020
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021