Beleaguered Buick aims for Elegant, Sophisticated

[Ming]

Beleaguered Buick aims for elegant, sophisticated
Knight Ridder News
11/19/05

PITTSBURGH - Buick, the linchpin around which General Motors built its empire, lately has been part of the problem rather than part of the solution for the struggling automaker.

Like other GM makes, analysts say, Buick has been slow to respond to changes in market tastes, has kept cars on the market for too long without significant changes and has a lingering consumer perception of quality control problems.

It also is beset with problems unique to Buick. Two of its most familiar models, the Century and the Regal, have been replaced by the new LaCrosse, and the same thing is occurring with the Park Avenue and the LeSabre, which are being replaced with the new Lucerne. "The brand is really in a state of flux right now," said Tom Libby, an analyst with J.D. Power & Associates.

It's a change Buick felt it had to make - and a challenge on which it's pinning its future. Executives are counting on the Lucerne to account for 40 percent to 50 percent of the company's sales in coming years and, coupled with the new LaCrosse, to represent 80 percent of all Buick sales, said Margaret Brooks, Buick's marketing director.

The goal is to make the Buick name synonymous with "elegant, graceful and incredibly sophisticated," she said - characteristics that marked Buicks during the brand's heyday, when the division's share of the domestic market stood at nearly 7 percent in 1982 and 1983. It actually sold the most cars in 1985 - 941,611. But in a year that saw overall auto sales jump, that was only good enough for a 6.5 percent share.

Buick has been slipping ever since. So far this year, its share of the domestic market stands at 1.7 percent, with sales down 8.5 percent from a year ago, when it sold 266,881 vehicles through October.

To counter the sales slump, GM has been forced to offer steep incentives, including a popular employee pricing program most of the summer and, more recently, new discounts on most Chevrolet, GMC, Pontiac and Buick vehicles through Jan. 3.

Whether the new discounts and Buick's new models can turn around the brand's fortunes remains to be seen, but Libby, of J.D. Power, isn't hopeful.

He doesn't think revitalizing the storied nameplate will be easy for a Buick name that struggles to appeal to younger buyers. "They have one of the oldest average ages in the industry," he said.

In its golden years, Buick was clearly a medium-priced powerhouse for GM, making big sedans, hardtops and convertibles with those toothy chrome grilles, sweep spears and portholes.

Most consumers knew exactly what a Buick was - the car you bought if you were successful but didn't want to be flashy. Cadillac filled that latter void. And there weren't the complications of foreign makes to worry about because there weren't many around.

But once Honda's Acura, Toyota's Lexus and Nissan's Infiniti showed up later in the '80s, the market changed. And the BMW 3 Series, which was priced smack up against some of the better-known, upscale U.S. brands, became the darling of young professionals.

But don't count Buick out, analysts say.

Despite its troubles, Buick owners still connect with the brand.

"They have one of the highest loyalty ratings of all the brands in the industry," Libby said.

Article Source in Full: http://www.billingsgazette.com/index...s/25-buick.inc

[wildcatman]

Talk about putting all your eggs in one basket....It scares me that the General is relying on two cars at Buick to generate 80% of their sales. So far the LaCrosse is so-so and if the Lucerne is so-so, we are in trouble. I can't believe with all the product GM has around the world that they can't rebadge a few vehicles just to generate interest at the showroom.
If GM does not do something fast, I believe Buick is done, but maybe that is what GM secretly wants.

[Ming]

Originally Posted by wildcatman

Talk about putting all your eggs in one basket....It scares me that the General is relying on two cars at Buick to generate 80% of their sales. So far the LaCrosse is so-so and if the Lucerne is so-so, we are in trouble. I can't believe with all the product GM has around the world that they can't rebadge a few vehicles just to generate interest at the showroom.
If GM does not do something fast, I believe Buick is done, but maybe that is what GM secretly wants.

If Buick is focused as a "partner brand" of Pontiac and GMC, then I think it is a good strategy. There was a time when Buick relied on only a couple of models. Its only within the last 20 years or so that Buick tried to be everything to everyone, with J-body models like the Skyhawk, or with rebadged SUV's and Minivans.

The days of stand-alone Buick dealerships should come to a close , IMHO, and the BPG alliance strengthened and encouraged. That way the General can afford to give each of the 3 brands less models, but quality, competitive product, not a whole load of also-ran rebadges that no one wants without a massive rebate special sale.

OTOH, I agree, the LaCrosse and Lucerne are dated "rebadges" based on the tired W and G body platforms, and still use the hoary 3800 and 4-speed transmissions. They could really use 6-speeds and more modern base engines (despite the performance, you aren't going to attract young people with that technology, or an out-of-reach expensive "Ultra" trim engine). I also don't think it would be a loss to have Buick use the G6's stretched sedan platform instead of the perennial W-body. The difference in size between the W and G body isn't enough to justify the existence of the two. A 2.8L V6 powered stretched (G6) Epsilon with a 6-speed trans, and luxurious interior with quiet tuning might make a good rebadge partner (lets face it, GM isn't going to stop rebadging any time soon) to the Saturn Aura, and would be much more up to date than the 1996 Riveira-looking Lacrosse with its outdated greenhouse.

[plane]

Originally Posted by Ming

If Buick is focused as a "partner brand" of Pontiac and GMC, then I think it is a good strategy. There was a time when Buick relied on only a couple of models. Its only within the last 20 years or so that Buick tried to be everything to everyone, with J-body models like the Skyhawk, or with rebadged SUV's and Minivans.

The days of stand-alone Buick dealerships should come to a close , IMHO, and the BPG alliance strengthened and encouraged. That way the General can afford to give each of the 3 brands less models, but quality, competitive product, not a whole load of also-ran rebadges that no one wants without a massive rebate special sale.

I've seen many suggestions for GM success. Many aren't worth the time to read. But Ming has got something here. It's the right thing at the right time. Quality and profits, not quantity. Rebuild the brand as part of a focused partnership. Excellent!

[FLA-USA]

Saw my first Lucerne on the way to church this a.m.. Looked quite nice in fact... a more Japanese "all one piece look" rather than the typical Buick amalgam of pieces stuck together. Thought by the looks alone, it could be competitive.

But for the life of me, I cannot see how GM is gonna get import loyalists/intenders into a Buick showroom. It just does not cater to younger folks at all. Unfortunately I think Buick is doomed. Buick repeat customers are really all they can hope for... and without growing the business by grabbing import buyers (younger folks), there is nowhere to go but down.

BTW... car had 2 old couples in it... the old men in front, and the blue hairs in the back!

[tgagneguam]

Originally Posted by wildcatman

...It scares me that the General is relying on two cars at Buick to generate 80% of their sales. So far the LaCrosse is so-so and if the Lucerne is so-so, we are in trouble...

I was going to post something similar. I wouldn't mind if two cars carried the majority of the sales responsibility at Buick, but these two cars are weak entries to be shouldering that burden. They're good cars, but they're certainly not class-leading. And if these two cars represent the lion's share of GM's oft quoted but thinly realized $3 billion investment in Buick, then the division is in some serious trouble. Neither one is an image vehicle in terms of design. They don't offend, but they certainly don't excite, either.

It also is beset with problems unique to Buick. Two of its most familiar models, the Century and the Regal, have been replaced by the new LaCrosse, and the same thing is occurring with the Park Avenue and the LeSabre, which are being replaced with the new Lucerne. "The brand is really in a state of flux right now," said Tom Libby, an analyst with J.D. Power & Associates.

On the one hand, I can understand the name switch. But on the other, GM is dumping the equity of familiar names for the anonymity of new names. If the brand name was strong, I could understand launching a new vehicle name. However, Buick carries almost no cachet, so introducing a new name under a perceived to be worthless name is not a smart move, in my mind.

Like other GM makes, analysts say, Buick has been slow to respond to changes in market tastes, has kept cars on the market for too long without significant changes...

Yes, and with recent news that Wagoner wants to starve product development further, things probably won't be improving too rapidly.

...and has a lingering consumer perception of quality control problems.

Is this true? My concerns with Buick are its failure to deliver on "understated elegant" designs in near luxury vehicles that would appeal to younger, more affluent buyers who don't necessarily need to flaunt their wealth in a BMW kinda way. There are several quality measures - both sales satisfaction and build quality - that suggest Buick knows exactly what it's doing when it comes to quality. And I cannot remember the last vehicle recall that Buick has had (though I'm sure some clever GMIer can refresh my memory!).

[vxl]

Let's have a novel approach - we have "Irish Americans", "African Americans" .... Buick was Scottish - let's aim for the Scottish American !!!!!!!

[chevrolet usa]

Originally Posted by FLA-USA

Saw my first Lucerne on the way to church this a.m.. Looked quite nice in fact... a more Japanese "all one piece look" rather than the typical Buick amalgam of pieces stuck together. Thought by the looks alone, it could be competitive.

But for the life of me, I cannot see how GM is gonna get import loyalists/intenders into a Buick showroom. It just does not cater to younger folks at all. Unfortunately I think Buick is doomed. Buick repeat customers are really all they can hope for... and without growing the business by grabbing import buyers (younger folks), there is nowhere to go but down.

BTW... car had 2 old couples in it... the old men in front, and the blue hairs in the back!

You must be speaking from experience as an import loyalist.

[wpbharry]

Hasn't happened yet, but any day now, I also expect to see my first Lucerne. And I'll bet there's a blue hair in the front seat also.

Buick has such great quality because they keep rebadging old platforms!!!

I also like Ming's Epsilon idea, but I'm already a tad concerned that the Aura will step on the G6s toes and another Epsilon would only make things worse. And since the G6 can clear $30K, the Aura will be higher than that, top-line. Yikes.

Rumor DID have it (before the recent cutbacks were announced) that the LaCrosse WAS moving to Epsilon II around '09.

[Jay]

Buick has one positive on its side--it has the ability to shock the public.
Because people are so used to associating "Buick" with "Geriatric" it would be easy for them to grab the public's attention and offering one really wild, athletic car.
Just think what a GTO-based coupe or a Cadillac-based power sedan would do for the brand and how many people would be drawn into showrooms.

Right now GM is doing nothing to help it.

[sigma]

What platform is supposed to replace the WBody? I have heard either Chi or EpII.

[footney]

Buick RIP!

[cadillacs amaze]

i know what would help...........the Velite

[stormwatcher]

I think it is too late for Buick and I don't think that $3 billion was ever reinvested in it.
The LaCrosse is OK, but heck, even GM's ads only compare it to a Camry, much less any Lexus.

The base 3800 engine and 4 speed tranny just won't do for what these Buicks are trying to do....which is appeal to a wider audience and save a storied nameplate.

More and more, Buick is looking just like Oldsmobile....giving one last push to remain relevant before giving up the ghost completely. I predict Buick will last no more then another 3 years.

[hudson32]

Originally Posted by chevrolet usa

You must be speaking from experience as an import loyalist.

Unfortunately, the truth is Buick is less successful than Cadillac in conquesting younger buyers. I hate to say it, but many LaCrosse buyers are older buyers who have owned Regals and Centurys for many years. Buick only has one other car, the Lucerne, and the G platform is not bad. But the W platform is dated, and the 3800 engine is just not as refined as the competition, even though the engine is satisfactory. I mean the LaCrosse is almost 198 inches long, but has less interior space than the Malibu, which is I think 10 inches shorter. Buick is not doing itself a favor by using the dated 3800 and the W platform. It is true that the Impala uses the W platform, but it is optimized to produce gobs on room on the inside. If Chevrolet has the Impala, why can't the LaCrosse have at least that much room on the inside, considering its length.

Whatever one's opinions are on the Lucerne, and I think that it is a great car besides the standard V6 engine, Buick is not convincing buyers to give up its Avalons, Camrys, Accords, and now the Hyundai Sonata.