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China’s GAC May Pause U.S. Intro Because of Trade War
China’s Guangzhou Automotive Group appears likely to delay plans to debut its first vehicle in the U.S. next year because of the Trump administration’s new 25% import tariff on Chinese cars.
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China’s Guangzhou Automotive Group appears likely to delay plans to debut its first vehicle in the U.S. next year because of the Trump administration’s new 25% import tariff on Chinese cars.
GAC President Yu Jun tells reporters at the Paris auto show that the American launch of its GS8 large SUV may slide into 2020. The company used the show to unveil its new GS5 crossover, which it hopes to introduce in Europe soon.
The company began lining up U.S. dealers in March. At the time, China was applying a 25% import tax on American-made vehicles, but Chinese-built vehicles faced a U.S. tariff of only 2.5%.
GAC already operates in 16 countries. Yu says the company aims to eventually boost foreign sales of its cars from 10% currently to at least 50%.
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