Legacy automaker General Motors has just reiterated the essence of having a “level playing field” for local brands against lower-cost Chinese rivals in the US market.
GM to advance Chevrolet’s position in the EV race with new Equinox EV
General Motors seeks to make the Chevrolet brand more competitive in the electric vehicle industry with the launch of the first affordable model model, the Equinox EV.
The new Chevrolet Equinox EV delivers a driving range of up to 319 miles. It is expected to start at approximately $35,000 after federal tax credits.
Excitingly, Chevrolet is set to introduce an even cheaper LT variant later this year. After tax credits, the price will further be driven down to the $20,000 range.
100% tariffs on Chinese-made EVs to protect local brands
GM is highly optimistic that the Chevrolet Equinox EV will be popular in the US market, considering American customers’ increasing preference for affordable electric vehicle models.
Even more, the electric SUV would not have to worry about the surge of lower-cost Chinese-made EVs owing to the 100% tariff President Biden announced on Tuesday.
“To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.”
White House
During the recent Equinox EV launch event near Detroit, GM President Mark Reuss called for “a level playing field.” He warned that Chinese companies could penetrate the US market not to boost profits but to cripple the local industry.
“There are strategies where folks will get into a price war and not make money, but try to price things out of markets. It’s not even [China’s] supply chain, it’s their pricing strategy. We just want a level playing field to be able to price and make a profit and deliver value to our customers.”
GM President Mark Reuss
Potential risks to EV shift
Despite the positive implications of Biden’s 100% tariffs on China-made EVs, critics warned that local automakers could decelerate or even ditch the electric vehicle shift without the threat of Chinese competition.
In fact, even GM has reportedly scaled back some of its electrification plans. For instance, Cadillac officials recently announced plans to continue building ICE-powered cars past the original 2030 deadline.
GM executives also emphasized the importance of letting “customers make the choice” while it has “feet in both camps” during the Equinox EV launch.
Such remarks prompted people to question GM’s overall commitment to electric vehicles. Nonetheless, it still plans to launch some battery-electric vehicle offerings this year. Apart from the Equinox EV, the mix includes the Silverado EV and the Cadillac Optiq.
