GM may increase production in China following duties imposed on U.S.-made cars image

General Motors may accelerate plans to increase production in China after the local government announced it will impose punitive duties on some vehicles imported from the U.S.

For some GM vehicles, duties can reach 12.9 percent, a fact which could determine the company to increase its local output faster than originally planned. According to an analyst from JP Morgan & Chase, the duties will have a modest impact on GM, as most of its vehicles imported to China are low-volume models such as the Buick Enclave and the Cadillac SRX SUVs.

Only 1.3 percent of the 2.43 million vehicles sold by GM in China last year were imported. Klaus-Peter Martin, a company spokesman, said that the company’s policy is to build cars in the markets it sells them, adding that only 0.5 percent of sales in the region come from GM’s North American plants.

For Chrysler vehicles, duties could reach a maximum of 8.8 percent, while Ford will not be affected by the decision, as the only imported vehicle it sells in China is the Canada-built Edge SUV. U.S.-made BMW and Daimler vehicles will face duties of 2 percent and 2.7 percent respectively. The punitive duties are applied to U.S.-made vehicles with engines above 2.5-liters in size.