According to foreign media reports, GAC has stated that after President Donald Trump threatens to levy a tariff on imported cars, he will shelve the plan to export vehicles to the United States. GAC passenger vehicles have been committed to becoming the first domestic Chinese automaker to export light vehicles to the United States.
Li Shao, deputy general manager of Guangzhou Automobile Group Co., Ltd., said that whether to export cars to the United States depends on whether the tariffs will make the cars too expensive to be competitive in the United States. Li Shao pointed out that although the decision to collect tariffs is still under study, “We believe that the leaders of China and the United States have the ability to resolve these conflicts.â€
However, he admitted that the establishment of tariffs may undermine the sale of seven GS8 crossover vehicles in the United States by the end of 2019. Prior to this, GAC had begun recruiting US distributors. Li Shao said at the Global Automobile Forum held in western China last week: “If the United States really raises tariffs, it will have an impact on our plans. But this decision is still under discussion, so we can only wait and see. We must investigate whether we have sufficient competitiveness in the U.S. market. If the tariff increases, our price competitiveness will not be sufficient. Perhaps we will postpone the plan."
The United States has launched a national security survey on imports of cars and trucks that may lead to new tariffs. As we all know, these tariffs are for those car manufacturers that have begun exporting to China. However, the idea of ​​raising tariffs was already put forward when China and the United States began to argue about a series of trade disputes. The imposition of tariffs on cars may be a way for the United States to stop the wave of Chinese imports.
GAC has been one of the most Chinese companies that are eager to open up the US market. Previously, GAC opened a research center in the US Silicon Valley and announced plans to open offices in Detroit and Los Angeles this year. In January of this year, the GS8 model has appeared at the Detroit auto show.
Li Shao stated that since its establishment, GAC has always wanted to become a global player. He said, “Chinese companies going global will be a common trend in the future. Chinese automakers will shift from product technology and brand recipients to product technology and brand exporters. We are ready to enter the North American market.â€
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