GM targets smaller more profitable Buick brand.
11-29-2006, 10:20 AM
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GM targets smaller more profitable Buick brand.
http://today.reuters.com/news/articl...c=66&type=qcna
LOS ANGELES, Nov 29 (Reuters) - General Motors Corp.(GM.N: Quote, Profile, Research) is prepared to nearly halve the number of Buick models it offers in the United States as it tries to reestablish the luxury brand in its home market, GM's chief executive said on Tuesday.
Rick Wagoner, speaking to reporters at the unveiling of the 2008 Buick Enclave, said the automaker would also reduce Buick sales to rental car companies as it shifts toward targeting more profitable retail sales with upcoming new designs.
Although Buick has offered as many as seven models in recent years, Wagoner said GM was prepared to accept lower unit sales with about four models in order to try to capture more showroom traffic and shun lower-margin sales to car rental companies.
"In the end we're going to let it flow. But what we're going to do is to make sure we make three and then four really good (Buick models)," Wagoner told reporters.
GM has been pushing dealerships to consolidate into stores that offer its GMC trucks along with Buick and Pontiac models.
Wagoner said that push combined with the success of Buick in China would help turn the brand around in the U.S. market, where it has struggled to attract a younger generation of buyers.
"We've had a terrific run in China with Buick," he said. "Buick sells to the upper crust in China. That's going to open up some opportunities over time for product sharing that we wouldn't have had or even thought of five years ago."
He added: "We don't have to play hard in daily rental with Buick because frankly we've got other brands to play that role. We want to run a lot of volume through Chevrolet. It is the brand that should play broadly and if we need to push for some volume that's the place to push for it. Buick, we can focus."
GM is showing off the production version of the Buick Enclave, at the Los Angeles Auto Show. Continued...
LOS ANGELES, Nov 29 (Reuters) - General Motors Corp.(GM.N: Quote, Profile, Research) is prepared to nearly halve the number of Buick models it offers in the United States as it tries to reestablish the luxury brand in its home market, GM's chief executive said on Tuesday.
Rick Wagoner, speaking to reporters at the unveiling of the 2008 Buick Enclave, said the automaker would also reduce Buick sales to rental car companies as it shifts toward targeting more profitable retail sales with upcoming new designs.
Although Buick has offered as many as seven models in recent years, Wagoner said GM was prepared to accept lower unit sales with about four models in order to try to capture more showroom traffic and shun lower-margin sales to car rental companies.
"In the end we're going to let it flow. But what we're going to do is to make sure we make three and then four really good (Buick models)," Wagoner told reporters.
GM has been pushing dealerships to consolidate into stores that offer its GMC trucks along with Buick and Pontiac models.
Wagoner said that push combined with the success of Buick in China would help turn the brand around in the U.S. market, where it has struggled to attract a younger generation of buyers.
"We've had a terrific run in China with Buick," he said. "Buick sells to the upper crust in China. That's going to open up some opportunities over time for product sharing that we wouldn't have had or even thought of five years ago."
He added: "We don't have to play hard in daily rental with Buick because frankly we've got other brands to play that role. We want to run a lot of volume through Chevrolet. It is the brand that should play broadly and if we need to push for some volume that's the place to push for it. Buick, we can focus."
GM is showing off the production version of the Buick Enclave, at the Los Angeles Auto Show. Continued...
11-29-2006, 01:16 PM
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If Buick could be turned into a Lexus-type brand, with great fit and finish, I think they'd bring a lot more customers in. Let Caddy be the bad-boy sports luxury brand, and give Buick some all-out luxury models. If they figure out a way to work quality into the equation, and price them competitively with Lexus, GM will have a winning brand on it's hands.
11-29-2006, 02:22 PM
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I don't think anyone who didn't miss him last year saying Buick & Pontiac were going to be combined is going to be surprised by news of a smaller Buick (and Pontiac) line.
Chevrolet is going to eventially be the only GM brand marketed to rental companies.
Wagoner isn't including the Buick Lacrosse in his assesment of future Buicks. He's talking about it's replacement.
You guys are barking up the right tree in assuming the 4th Buick isn't a sedan.
Chevrolet is going to eventially be the only GM brand marketed to rental companies.
Wagoner isn't including the Buick Lacrosse in his assesment of future Buicks. He's talking about it's replacement.
You guys are barking up the right tree in assuming the 4th Buick isn't a sedan.
11-29-2006, 02:33 PM
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If Buick could be turned into a Lexus-type brand, with great fit and finish, I think they'd bring a lot more customers in. Let Caddy be the bad-boy sports luxury brand, and give Buick some all-out luxury models. If they figure out a way to work quality into the equation, and price them competitively with Lexus, GM will have a winning brand on it's hands.
GM has done a good job of re-making Cadillac to appeal to those who want some raw performance along with their luxury but that does not mean GM should abandon Cadillac’s overall heritage and push what could be Cadillac sales onto Buick.
11-29-2006, 02:50 PM
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Cadillac already IS the Lexus/Infinity/Acura of GM – it has a very long history of being the “top of the line” of GM vehicles…for decades they’ve been, at least in the opinion of the public if not in actuality, the leader in luxury, technology (and for many years of performance as well) and the symbol of having “arrived”. Given that, why would GM want to now try to force Buick into that role?
GM has done a good job of re-making Cadillac to appeal to those who want some raw performance along with their luxury but that does not mean GM should abandon Cadillac’s overall heritage and push what could be Cadillac sales onto Buick.
GM has done a good job of re-making Cadillac to appeal to those who want some raw performance along with their luxury but that does not mean GM should abandon Cadillac’s overall heritage and push what could be Cadillac sales onto Buick.
What hes saying, which I largely agree with, is that Buick should stick with the sort of "old world" luxury, of big land yachts with cushy suspensions. Also more traditional styling would bode well too if Cadillac continues to push the modernity, of their cars, which they should.
11-29-2006, 02:53 PM
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Cadillac already IS the Lexus/Infinity/Acura of GM – it has a very long history of being the “top of the line” of GM vehicles…for decades they’ve been, at least in the opinion of the public if not in actuality, the leader in luxury, technology (and for many years of performance as well) and the symbol of having “arrived”. Given that, why would GM want to now try to force Buick into that role?
GM has done a good job of re-making Cadillac to appeal to those who want some raw performance along with their luxury but that does not mean GM should abandon Cadillac’s overall heritage and push what could be Cadillac sales onto Buick.
GM has done a good job of re-making Cadillac to appeal to those who want some raw performance along with their luxury but that does not mean GM should abandon Cadillac’s overall heritage and push what could be Cadillac sales onto Buick.
I see Buick filling in more for the old Cadillac and Pontiac being a mix between Chevrolet and BMW (of course closer to the Chevy side).
11-29-2006, 03:20 PM
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I would suggest that if you look at the market research, you woudl find that people who are buying BMW and MB and Audi are cross-shoping Lexus, Infiniti and Acura but only a few are also cross shopping Cadillac.
That is not intended to be a swipe at Cadillac but Cadillac still just doesn't have the reputation, in the mind of the overall public, as does the other brands I mentioned above.
The point is, Cadillac is, in my opinion, in a much better position to compete in all those segements than Buick could be (or at least, it would take much less work and MUCH less $$$ to do so).
I also disagree that Buick sticking to "old world luxury" of big land yahts and chshy suspension is a good direction...that may well be better territory for Buick than Cadillac and it may be Ok in the very short term but that is not where the world is heading.
Just my $0.02
Maybe the pink elephant in the room is whether Buick is "needed" by GM at all???
That is not intended to be a swipe at Cadillac but Cadillac still just doesn't have the reputation, in the mind of the overall public, as does the other brands I mentioned above.
The point is, Cadillac is, in my opinion, in a much better position to compete in all those segements than Buick could be (or at least, it would take much less work and MUCH less $$$ to do so).
I also disagree that Buick sticking to "old world luxury" of big land yahts and chshy suspension is a good direction...that may well be better territory for Buick than Cadillac and it may be Ok in the very short term but that is not where the world is heading.
Just my $0.02
Maybe the pink elephant in the room is whether Buick is "needed" by GM at all???
Last edited by Robert_Nashville; 11-29-2006 at 04:29 PM.
11-29-2006, 04:12 PM
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I did not mean Buick should be a "land yacht" with a cushy suspension. That sort of thinking is what got Cadillac's reputation tossed into the dumpster.
Lexuses (Lexi? for plural?) have a reputation for outstanding quality, quiet rides, but without sacrificing too much in terms of performance. Key word - "reputation". If Buick can match that, then everything will be OK.
and as for a return of the Grand National, i'd be very excited.
Lexuses (Lexi? for plural?) have a reputation for outstanding quality, quiet rides, but without sacrificing too much in terms of performance. Key word - "reputation". If Buick can match that, then everything will be OK.
and as for a return of the Grand National, i'd be very excited.
11-30-2006, 08:09 AM
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Hmm, I see Buick as a direct competitor to Lexus,Infiniti, and Acura in the coming years. The emphasis would be on luxury rather luxury/performance(though the performance numbers would be respectable). I wouldn't hold my breath for anything even resembling a Grand National from Buick ever again as the brand has moved on. About that 4th car in the lineup: what would you say to a convertible-only RWD Riviera on Zeta? Just a guess.