9.15Tire spat may affect US automakers in China

Tire spat may affect US automakers in China

 

http://autonews.gasgoo.com/auto-news/1012170/Tire-spat-may-affect-US-automak
ers-in-China.html

 

Shanghai, September 15 (Gasgoo.com) The ongoing China-U.S. trade dispute
will drive tire prices higher for American consumers and also threatens to
complicate business for U.S. automakers in the booming Chinese market if
unresolved, Reuters reported.

 

The Obama administration said on Sept. 11 that it would adopt steep tariffs
on tire imports from China later this month, a move tire distributors said
would have the effect of raising the price of low-cost tires to U.S.
consumers almost immediately.

 

China denounced the U.S. decision as trade protectionism and launched an
anti-dumping investigation into imports of U.S. auto parts and other items,
including chicken products. 

 

The disputes threaten to draw in U.S. auto companies, most of which have
joint ventures in China that produce car parts and full vehicles for the
fast-growing Chinese market, which is critical for U.S. automakers looking
to target growing regions.

 

General Motors' China sales in August jumped 112.7% year on year to 152,365
vehicles, expecting a 40% rise in full-year sales. Sales of Ford brand cars
at Changan Ford grew 111% in August from a year earlier to 21,127 units.
Chrysler Group is seeking a new Chinese partner to boost its growth in the
China market.

 

China's share of the U.S. tire market grew to 17% in 2008 from 4.7% in 2004
as tire makers increasingly looked to lower-cost regions to produce
low-priced tires. The disputes may leave manufacturers wondering where to
distribute their China-made tires.

 

The new duties of 35% on Chinese tire imports will take effect Sept. 26 and
add to an existing 4% duty. The duties would fall to 30% in the second year
and to 25% in the third year.

 

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