Can't Get No Tariff Relief: Tesla, GM, Nissan, FCA, Uber Appeals Denied

by Steph Willems

June 14th, 2019 11:35 AM

cant get no tariff relief tesla gm nissan fca uber appeals denied

Large U.S. companies hoping to side-step the 25 percent tariff on Chinese goods by appealing to the government aren’t having much luck. Since July, the U.S. has imposed the tariff on billions of dollars worth of goods from the People’s Republic, leading to financial fallout for automakers heavily invested in the region.

And it seems no one complained more than General Motors. Tesla, Nissan, Fiat Chrysler, and Uber also sent in official gripes in the hopes of receiving an exemption, only to have the door hit them on the way out.

According to Reuters, GM sent more than 50 requests to the U.S. Trade Representative. The automaker’s appeals fell on deaf ears, however, with the USTR rejecting efforts to remove import levies on such things as electronic controllers for high-voltage battery controls, ignition switches, and electric motor components.

Recently, the USTR turned down requests from Tesla for an exemption on its Model 3 computer, touchscreen, and Autopilot “brain.” The trade rep’s office said the components were “a product strategically important or related to ‘Made in China 2025,’ or other Chinese industrial programs.”

If you’re no fan of Uber or its rentable electric bikes, you’ll be pleased to learn those two-wheeled mobility devices couldn’t wrestle themselves away from the tariff, either. Nor could Nissan, which reportedly sent in dozens of requests.

For FCA, the tariffs imposed on things like wire harnesses and the Ram 1500 and Jeep Wrangler’s electrical power steering pump could end up costing customers more at buying time. The company said, in one request, that it will be forced to “reduce its margins, pass the additional cost onto consumers, or some combination of the two.”

Tesla, which finds itself in a far more perilous financial situation that its rivals, offered up a similar refrain. Choosing a non-Chinese supplier would have pushed the Model 3 timeline ahead by a year and a half, the automaker said.

[Image: Fiat Chrysler Automobiles]

#AutoImports #China #Fca #GeneralMotors #GM #Nissan #Tariffs #Tesla #Trade #Uber

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Schmitt trigger on Jun 14, 2019

I don't believe that they are stupid. They are actually carefully planning the financial well-being for them and the elites they serve. Corrupt? In spades, my friend, in spades. And wholly unpatriotic.

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- Lorenzo on Jun 15, 2019
  
  Self-interest by itself isn't corrupt. Self-interest at the expense of others is unethical, if it isn't specifically illegal. Short-term thinking is stupid, but lucrative. When executives let the quarterly results rule over the long-term health of a company, they're rewarded by stockholders who don't realize their investment is suffering long term harm. That doesn't bother stock speculators who trade frequently on the ups and downs, but it does a disservice to those who buy and hold, and that includes institutions like retirement funds. What the exemption seekers want is protection from their own short term decisions.
  
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- Highdesertcat on Jun 15, 2019
  
  @Lorenzo " Self-interest at the expense of others is unethical.." Does this mean you'd take a bullet for someone? Or would you willingly lose money in the stock market and other investment because of your concern for your fellow human being? IMO, self-interest is what has ensured the survival of mankind.
  
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Spartan on Jun 16, 2019

All to please a bunch of idiots who won't even buy American made products and have foreign iron sitting in their driveway. But eh, MAGA! Fools.

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- Art Vandelay on Jun 17, 2019
  
  I like it, and 3/4 of my fleet is US built with the only non US one being a Mexican built Ford.
  
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