BUSINESS

GM China to Restructure Durant Guild Premium Unit as High Tariffs Persist

Published: May. 17, 2025 6:16 a.m. GMT+8

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Vehicles at the SAIC General Motors Corp. factory in Shanghai on Dec. 6, 2024.

General Motors China Inc. is to restructure its Durant Guild imported car unit, the automaker announced Thursday. The decision comes as China continues to impose high tariffs on U.S.-made traditional vehicles despite a surprise de-escalation in the trade war between the world’s two largest economies.

The company did not give a reason for the move, which comes nearly two years after it launched the Durant Guild platform. The initiative was to boost sales of its premium model lineup under brands such as Cadillac and Chevrolet across China.

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General Motors China will restructure its Durant Guild imported car unit due to persistent high tariffs on U.S.-made vehicles in China.
Despite recent temporary tariff reductions, Chinese tariffs on U.S. large-engine cars remain high (up to 60%), impacting Durant Guild’s profitability.
GM China remains committed to local partnerships after reporting profits in late 2024 and early 2025.

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Who’s Who

General Motors China Inc.: General Motors China Inc. is restructuring its Durant Guild imported car unit due to continued high Chinese tariffs on U.S.-made vehicles. Launched in 2023, Durant Guild aimed to boost premium model sales in China but faces profitability challenges. Despite reduced tariffs, rates on U.S. cars remain steep. GM China will continue collaborating with local partners to strengthen its joint ventures, especially after reporting profits in late 2024 and early 2025.

Durant Guild: Durant Guild is General Motors China’s imported car unit, focused on selling premium models like Cadillac and Chevrolet in China. Launched in 2023, it aimed to offset losses from sluggish joint venture sales. Despite opening brand experience centers and initial deliveries, the platform faces profitability pressure due to China’s high tariffs on U.S.-made vehicles, especially those with large engines. General Motors has announced plans to restructure Durant Guild.

Cadillac: According to the article, Cadillac is one of the premium brands whose models were promoted in China through General Motors’ Durant Guild platform. The initiative aimed to boost sales of Cadillac and other premium models, but restructuring is now underway due to high tariffs on U.S.-made vehicles, which affects profitability.

Chevrolet: According to the article, Chevrolet is one of the premium model lineups included in General Motors China’s Durant Guild platform, which aims to boost sales in China. The platform, launched nearly two years ago, includes Chevrolet alongside other brands like Cadillac and has established several brand experience centers in major Chinese cities such as Shanghai and Beijing.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is a Chinese automotive company that has a joint venture with General Motors China. The article mentions that the joint venture has faced sluggish sales in China due to increased competition from local new-energy vehicle brands, prompting GM to launch the Durant Guild business in 2023 to partially offset these losses.

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