The Buick Envision SUV could become the brand’s first China-made vehicle imported into the United States, a new report finds. Often management can use the opportunity to allocate a specific model as a bargaining chip to induce the UAW to agree to work practices or other arrangements that make a particular plant more competitive.
The UAW is in contract negotiations with GM, Ford Motor Co. and Fiat Chrysler Automobiles NV on four-year contracts for hourly workers, including almost 51,000 at GM. But preserving jobs and securing new vehicles for U.S. plants is also a top goal.
In Detroit, Cindy Estrada, head of the UAW’s GM department, said the automaker would be “tone deaf” to import vehicles from overseas “after the sacrifices by U.S. taxpayers”, as well as union concessions, to create a profitable GM after a government-funded bailout in 2009. The union is concerned about the future of U.S. auto manufacturing under the possible trade pact. Republican presidential candidate Donald Trump and Democratic presidential candidate Bernie Sanders have railed against American politicians for giving China the upper hand.
Although U.S. sales of the China-built Envision seem fairly likely at this point, there are a few hurdles to clear. Current contracts, hatched in 2011, expire September 15.
Buick spokesman Nick Richards declined to comment on the UAW’s statement.
The UAW response follows an Automotive News story Monday that indicated GM is expected to bring the Envision SUV to the U.S. next year, citing industry forecasters. That keeps transportation costs low and mitigates the impact of currency fluctuation.
Buick introduced the midsize Envision SUV in China in fall 2014 and it’s been a strong seller.
It turns out General Motors Company [NYSE:GM] first polled dealers back in 2013 about the prospects of a small crossover being added to Buick’s lineup, something to bridge the gap between the subcompact Encore and mid-size Enclave. Production is eventually expected to shift to China, the sources said. “But it’s something that I think would probably be short-lived”.
Estrada also said such a move would go against GM’s pledge to build cars in the markets where they’re sold.
“The Envision should be made in the U.S.by the workforce that saved GM in its darkest time and UAW members intend to address this issue in contract talks”, she said.
