GM to decide fate of Envoy XUV, Bonneville by end of the year

RICK KRANZ | Automotive News
Posted Date: 1/21/05

General Motors will decide in the next three months whether to drop the Pontiac Bonneville at the end of the 2005 model year.

Also, the automaker likely will decide within six months the future of the GMC Envoy XUV, a slow-selling SUV that features a large, power-operated sliding roof over the cargo area.

The Bonneville decision is driven by the expansion of the Pontiac model line and the introduction of the 2006 Buick Lucerne, the replacement for the Buick LeSabre. Under GM's retail channel strategy, the automaker is pushing combined Buick-Pontiac-GMC dealerships to reduce product overlap.

Jim Bunnell, Pontiac-GMC marketing general manager, said the Bonneville had a good year in 2004 with 29,852 sales, up from 25,250 in 2003.

"But as you know, that large segment has continued to slide," Bunnell said. "We have a very strong LeSabre and a new Lucerne coming, so the question is, is this the best use of our resources?

"Frankly, from a dealer standpoint, does it make sense for the dealers to stock and floorplan both a Bonneville and a Lucerne, given products like the Pontiac Torrent, G6 coupe and Solstice" will be going into production in the next six months? Of GM's combined Pontiac-GMC-Buick dealers, 48 percent have all three franchises, according to a GM spokesman.

Additionally, the Bonneville and Grand Prix sedans overlap in terms of content and size.

Bunnell said the Bonneville will be assembled through June, but "beyond that we are not sure yet."

The Envoy XUV, meanwhile, has failed to meet sales projections.

The SUV, introduced in 2003, was expected to generate annual sales in excess of 125,000, according to a supplier. Last year, the automaker assembled 12,390 units. GM does not break out XUV sales in its monthly report.

The Envoy XUV is an odd duck in the SUV segment. Ads show an XUV with an open roof, carrying a grandfather clock upright in the cargo area.

Bunnell blamed the slow sales on the vehicle's five-passenger configuration.

"Pet owners absolutely love it, as do antique dealers and contractors, because it is so functional," Bunnell said.

But, he added, sales numbers show that most consumers prefer a seven-seater.

Bunnell expects that the Envoy XUV will be produced "at least through the '05 model year. My guess is into the '06 model year."

Of GM's combined Pontiac-GMC-Buick dealers, 48 percent have all three franchises, according to a GM spokesman.