Future of Buick in China is Bright

[importedtuna]

Chinese buyers give Buick a second wind
Last year, brand sold more there than in U.S.
May 8, 2007
BY KATIE MERX
FREE PRESS BUSINESS WRITER



Buick may be shrinking in the United States, but it's thriving in China.

By most accounts, the future of the Buick brand in China is bright and likely to become brighter.

Buick is aiming its marketing and lineup not just at the current upper middle class, which research journal the McKinsey Quarterly estimates at about 10% -- or 130 million -- of China's 1.3 billion people, but to the 520 million up-and-comers that McKinsey expects to comprise the upper middle class by 2025.

Buick's China lineup includes hatchback, sedan and wagon versions of the Excelle; the Regal and LaCrosse midsize sedans; two minivans, and the new $65,000 Park Avenue sedan, launched earlier this year, which it defines as mid-luxury.

"The Park Avenue interior is really incredible," said IRN Inc. auto analyst Erich Merkle. "And the GL8 minivan over there is a status symbol in the business community."

Many businesspeople in China use minivans or roomy sedans for escorting business associates and clients during the week and then use them to drive family members on the weekend, Merkle said.

Buicks in China range from as much as $65,000 for a Park Avenue to $13,900 for an Excelle.

Chinese Buick customers see themselves as hip, successful and increasing in power and accomplishment, Liu said.

So Buick is focused on service and offers a program called Buick Care that invites owners to join a club that gives them access to cultural events and invitations to movie premieres and provides 24-hour towing service; appointments for vehicle service; service hours from 8 a.m. to 10 p.m., 365 days a year, and four annual free inspections.

The new luxurious and futuristic Buick Riviera Coupe concept shown at the Shanghai auto show last month embodies what the modern Chinese Buick customer is looking for, GM China designer James Shyr said: luxury and elegance.

GM China also is working on a hybrid Buick sedan for the China market.

And though GM has no current plans to expand its Buick line in the United States, the efforts spent appealing to the Chinese middle class with fine interiors and appealing designs, like those of the new Riviera and Park Avenue, could make their way into U.S. Buicks, Wagoner said.

"Because we're developing and growing in China, we need a broader product portfolio to support it," Wagoner said last month in Shanghai. "Some of those products can be used in the U.S. I don't necessarily mean imported, but once they're designed and developed, if all you have to do is tool it up to build it in the U.S. or Canada, that's a much lower cost proposition.

http://www.freep.com/apps/pbcs.dll/a...705080314/1002

[nadepalma]

Originally Posted by importedtuna

"Because we're developing and growing in China, we need a broader product portfolio to support it," Wagoner said last month in Shanghai. "Some of those products can be used in the U.S. I don't necessarily mean imported, but once they're designed and developed, if all you have to do is tool it up to build it in the U.S. or Canada, that's a much lower cost proposition.

Best quote of the article --- now lets see if they deliver on it. It would be interesting to see how they two will interplay as far as product strategy goes.

We know there will NOT be a 1-to-1 correlation, but certainly some sharing is important, and not only in the segments in which the Buick line currently exists in the US market.

Let's see how this pans out....

[usa1]

If they build better Buicks in China, why not import them here? It will happen eventually.

Mark

[tgagneguam]

Interesting that the fates of the same company can be so completely disparate in different countries. It really shows what a little effort can yield, though it's equally frustrating that Buick NA seems completely incapable of learning Buick China's lessons.

And I had to chuckle when I read the part about the GL8 minivan being a status symbol. I hope GM's walking away from the minivan market in NA doesn't threaten Buick China's success in that part of the market.

[Brglotus]

I think if more Buick dealerships looked like the one in the picture more people would think they are upper class. Some of the buick dealerships around here look like they are stuck in the 60's and 70's. I'm all for designing in China or Oz or Europe and building here or even else where. We just want the product at the best price.

[dindak]

Anyone have a link to the Chinese Buick site?

[Geotpf]

Originally Posted by usa1

If they build better Buicks in China, why not import them here? It will happen eventually.

Mark

It's actually more expensive to build a car in an inefficient Chinese factory and ship it to the United States than to build one in a UAW factory in America.

[GM lover]

I cannot wait to see the new generation of Buick here. Hopefully GM makes sure that they control the pricing because no one will pay $65,000 for a Buick.

[TiburonJT]

Originally Posted by dindak

Anyone have a link to the Chinese Buick site?

http://www.buick.com.cn

[importedtuna]

Originally Posted by GM lover

I cannot wait to see the new generation of Buick here. Hopefully GM makes sure that they control the pricing because no one will pay $65,000 for a Buick.

The "Exciting Future of Buick" post says the Park Avenue will start at $40K, which would be more like a standard Holden Statesman or Caprice or maybe that new Daewoo L4X. No massaging seats, no awesome center armrest in the back, no real wood refreshment trays, no self-cleaning headlights, no automatic rear window sunshade, all the extreme luxury extra Chinese stuff stripped out for a base model. Like a long wheelbase commodore, and less Sporty / more floaty than a G8. But I'm not australian so those guys know better what a Statesman would be like compared to the G8.




Daewoo L4X:

[mcool]

I'd really like to see the Enclave be exported to China... as nice as they think the GL8 minivan is, the Enclave has to be far better, and it would be nice to squeeze some more out of US production.

[samkung]

Originally Posted by mcool

I'd really like to see the Enclave be exported to China... as nice as they think the GL8 minivan is, the Enclave has to be far better, and it would be nice to squeeze some more out of US production.

That will be a great idea, haha Buick export SUVs to China, and import the nice cars from china, but i dont see there is a huge market for SUV in china yet, n beside people can buy the Cadillac

[Ttple]

My Uncle bought as new Lucerne. It looks nice but it's a piece of crap. The door thunked when I closed it and I swear the plastic dash moved.

The Lucerne will fail mainly because it has poor headroom. I felt like I was sitting in a bathtub. Buicks are known for having spacious interiors. Bring back the leSabre and Park Avenue.

[asim]

I just can't wait for the Chinese and North American Buick products are aligned. Thats when we are going to get truly legit Buick products, because GM would be unwise to give junk to China, and then try to sell it here too.

[redimpss5]

Buick has a great line to buy, so why wont the American's buy them?