GM’s Small SUVs Now Find Themselves At a Crossroad
The new 25-percent tariffs imposed by the U.S. on foreign-made vehicles and parts are already forcing automakers to put some of their models and factories on idle, as we reported last week.
What will happen to small and affordable vehicles that can't really afford to suddenly jack their prices by several thousand dollars? That’s a good question.
Take General Motors' entry-level SUVs for instance. The Chevrolet Trax and Trailblazer as well as the Buick Envista and Encore GX are all built in South Korea. Another thing you should know is that 84 percent of the production at the two assembly plants making these vehicles is for the U.S. market, according to local media.
The Korea Times, in particular, is suggesting that if the tariff situation lingers and no exemption is granted by the Donald Trump administration, GM’s Korean subsidiary won’t be able to take the hit and will have to shutter its plants.
Unless the government over there does something about it, that is. Incidentally, various reports indicate that South Korea is about to announce emergency measures and incentives to help companies that continue to sell products in the U.S.
In North America, the four SUVs mentioned above are enjoying a lot of success thanks in no small part to their cheap prices. In Canada, the Chevrolet duo (the Trax starts at an all-inclusive price of $27,825) nearly matched the sales total of the Equinox and Equinox EV in 2024, while the Encore GX and Envista, in that order, led the way for Buick.
In case we need to remind you, the Equinox and Equinox EV (Mexico) and the Buick Envision (China) are all built outside of the U.S., too. GM previously made these choices in an effort to cut production costs, but some major recalculations are in order now.
