Buick Sales Are Up Despite Most Models Being Built Overseas

This week, General Motors reported some of the impact of the new US government tariffs on imported autos and parts, saying its second-quarter net income dropped by 35%, with the cost of tariffs now tallying $1.1 billion so far and projected to climb to as much as $5 billion by the end of the year. Surprisingly, Buick sales in the US are up 29% this quarter, despite three out of four Buick models being built in either South Korea or China.

Does this mean Buick can survive despite tariffs, or will it have to make some dramatic shifts in production in the near future? Nobody seems to know just yet.

Where Are Buicks Built?

The Buick Envista and Buick Encore GX models are currently assembled in South Korea and shipped to the North American market for sale with a new 25% tariff, and the Buick Envision faces a 45% tariff thanks to its Chinese assembly. The two most affordable models, the Envista and Encore GX, are also the brand’s most popular in the region. Buick also sells an electric Electra B5 SUV in China, but seemingly has no plans to bring that model stateside, especially now that it would face a steep 100% tariff as a Chinese-built EV. Any other plans for a new Buick EV have been deferred, apparently indefinitely, as market demand growth for all-electric models has slowed in recent years to below estimates and projections.

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What Do The Tariffs Cost Buick?

GM has reported that its South Korean-built models are still profitable after the 25% import tariff is factored in, so it’s likely they won’t rush to shift the Envista and Encore GX production lines.

GM and Buick reportedly have no immediate plans to directly raise new vehicle prices just yet, but are working on the back end for a 30% cost reduction, and are scaling back incentives and deals on new vehicle sales. GM’s average new vehicle transaction price is still around $51,000.

What Can Buick Do?

If Buick wants (or eventually needs) to make changes to where its vehicles are assembled, the timing isn’t great. It has a relatively fresh lineup, with most models not expected to get any significant overhauls for at least another three years. That means there aren’t any good opportunities or excuses to move the assembly line anytime soon. The Encore GX is expected to get updated around 2029, and the Envista around 2028. It’s possible an update for Envision is on the cards for 2026, which may be a good time for GM to decide if it should keep Buick in China or not.

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The Buick Enclave SUV is built in Michigan and could also be updated around 2028. Automotive News also reports that an affordable new electric model built alongside the new Chevy Bolt is a possibility by the end of the decade, as a more affordable EV offering.

Source: Automotive News