GAC said to postpone stepping into U.S. amid escalating trade dispute

Shanghai (Gasgoo)- Chinese automaker Guangzhou Automobile Group Motor Co.,Ltd (GAC Motor) might postpone the plan to deliver cars in the U.S. market due to the escalating Sino-U.S. trade dispute. 

"There may be a delay," said Yu Jun, general manager of GAC Motor, at the Paris Motor Show 2018 where the automaker unveiled its all-new Trumpchi GS5. He added that the company might wait until the first half of 2020 to step into the U.S. market. 

As part of GAC Motor's globalization strategy, the company had spent over 3 years studying the relevant laws and regulations about the North American market. GAC Motor was the only China's self-owned automaker that showcased cars at the 2015 Detroit Auto Show. The automaker announced last November that it planned to sell vehicles in the U.S. at the end of 2019.

At the National Automobile Dealers Association (NADA) kicking off on March 25 in Las Vegas, GAC Motor exhibited a product matrix consisting of the Trumpchi GS8, GM8, GA4 and GS4 and talked businesses with over 150 North American dealers on spot. However, the plan has to be cooled with the trade spat between two countries escalating.

Yu Jun noted that GAC Group has a design center in Los Angeles and also deploys R&D centers in Silicon Valley and Detroit. The company is thinking of building a dealership network in the U.S. despite the current uncertainty of distribution tactics. 

GAC Motor is one of many automakers affected by the Sino-U.S tariff dispute. General Motor has warned that it may remove the China-made Buick Envision from its U.S. product lineup if it fails to gain a tariff exemption from the U.S. government. Last month, a report said Volvo Cars has asked the Trump administration to exempt the company's China-made mid-size XC60 SUV from additional tariffs.