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Sources: No Decision Regarding Buick Adam

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#1 · (Edited)
GM still tossing Buick Adam ideas around internally.
www.GMInsideNews.com
October 4, 2013
By: Nick Saporito


Just as Buick and Opel publicly comment on their allegiance, speculation has heated up regarding the possibility of Buick bringing over the Opel Adam city car. Despite the talk, sources tell GMI that no decision has been made regarding the issue and that GM is looking at two different options for the car.

Based on an older Fiat-Opel subcompact architecture, the car is not engineered to be federalized in North America. Federalizing a vehicle refers to the process of making the vehicle legal for a specific country of sale, such as crash test standards and fuel economy requirements.

According to sources close to GM product planning, it would cost several hundred million for GM to federalize the Adam to sell in North America under the Buick brand. While that sounds like a lot of money, that’s a relatively minor capital investment to bring a new vehicle to market.

The question GM is tossing around internally is whether or not the Adam would sell in volumes high enough to justify the investment to federalize the car.

Allegedly some are pointing to the success of the Buick Encore and Verano – two small Buick’s that have supposedly beat internal sales projections, as proof that the Adam would sell in high enough volumes to justify bringing it over soon. At the same time, some still doubt that such a small car would do well in the United States, where buyers notoriously love midsize sedans and crossovers.

The second option GM has with the Adam is to wait for the next-generation version of the car. It is possible the next Adam will be based on a PSA Peugeot architecture as part of GM’s new alliance with the French automaker, however sources state that the car could be engineered for sale in North America from day one.

It is unclear what the timetable would be for either option, however apparently GM has not decided on either just yet.

In June GM CEO Dan Akerson publicly stated that he felt the Adam would make a good Buick product, suggesting the car has support from the top ranks. Last month Opel Chairman Karl-Thomas Neumann also mentioned at the Frankfurt Motor Show that the company was looking into offering the Adam under the Buick brand.

A third option would be for GM to just forget the idea of the Adam in North America entirely, however public comments seem to suggest that as the least likely option at this point.
 
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#5 · (Edited)
Can you imagine what BMW execs must have been thinking back in 2000 or so when making the decision to market the MINI in the US?

At the MINI's US launch in late 2001, the only B-segment cars available in America were the Hyundai Accent, Kia Rio, and Toyota ECHO. The only other B-segment 3-door was the Accent. The B-segment market was shrinking rapidly, as Ford, Chevy, Suzuki, Subaru, etc. had all dropped their B-segment offerings in the 7 years prior.

Gas was dirt cheap. Everybody was buying ever-growing SUVs, as Ford had just released an Excursion so big and so heavy, the EPA saw it as a different class of vehicle and didn't require Ford to post fuel economy figures on it. GM was about to release the HUMMER H2, which was also big enough to slip through the EPA's loophole.

The old MINI hadn't been marketed in America since 1967, so it had been nearly 35 years since America really knew what a MINI was. It was a pretty obscure car, except to car buffs, in this country. Not unlike the SIMCA 1100.

So what did BMW do? They relaunched the brand, largely with its own dealer network, and priced the small car 50% higher to start than any other B-segment car was going for at the time. You could get an '02 MINI out the door for as much as $35k.

It was a HUGE risk at the time, and BMW struggled hard to keep up with demand, as waiting lists became a mile long and used models started listing for the same as you could get an example new. They re-created the premium small car concept in just about the riskiest way and time possible.

Then what did FIAT do? They relaunched their brand in 2011 after pulling out of the market in disgrace 28 years prior. With the 500, a car in the A-segment, smaller than the MINI. With only 100hp to start, and only manual-trans models available at the beginning. And their risk paid off to great success.

GM designed the Adam to be a competitor to the MINI, which had already been leading the way a full 12 years before the Adam was produced.

The MINI has been profoundly profitable and successful in America. So has the Fiat 500. And they've got their own dealer networks to support. The Adam is a much lower-risk product for GM, and yet they're STILL HAND-WRINGING, worried about how successful this car might be in the face of a CUV-hungry, but more fuel-eco conscious market ever.

Bad news, folks. It shows a totally risk-averse GM that is so confused about what Buick is and can be that one minute they say we're going to see the Opel connection far more, and the next minute, they say they can't decide whether or not to bring the Adam and Cascada - Opel's two newest products - over!

We've been hearing about the Buick-Opel connection for since 2009. GM Labs showed us Buick city car concepts back then, to!

This is RIDICULOUS! Where's the GTC they were considering? Where's the coupe we were almost certain to get? Does GM know why the Buick renaissance is working? Do they know how to keep it going? Why are they still so insecure about the Buick brand that they can't make anything but a safe decision to offer sedans and CUVs in three popular sizes?

This is silliness!
 
#24 ·
POST OF THE YEAR!!!

The problem is the same it's always been: GM is NOT interested in making long-term commitment to its brands. What is a Buick? Hell, who knows.... How do you sell Cadillacs? Hell, who knows... Can GMC be more than a Chevy clone? Hell, who knows... BUT WE CAN SELL THE SAME 5 PRODUCTS THROUGH EVERY BRAND AND MAKE DECENT $$$, now that we don't have any legacy costs.
 
#6 ·
Wow. Makes you think the Fiat 500 was a waste of time, the way GM is dragging its feet.

That being said, if it is based on Gamma, then why wasn't Adam made to be brought into the US, like the Spark was?
That seems like a product cost-cutting decision on the front-end before development started.
It makes sense, if you're driving product development with a spreadsheet alone, and not understanding current market trends -- all of which are GM hallmarks.

The success of Mini and 500 around the world, including the US, show that there is a market for a stylish city car like the Adam.
So why develop the car that would cost extra money to sell in the US at some later date, when there is absolutely no hope to recoup investment cost? So the Adam would have to sell at some extraordinary numbers in order to break even? I bet the break even would have to be beyond 5,000/mo. The 500 sells ~3000/mo.

This is beyond stupid.
 
#8 · (Edited)
Fiat and Mini already own the market for such cartoonish little cars in the US.

We can say GM was stupid years ago for not doing such a thing, but it's academic now.

How many people who crave a Mini or a Fiat would go look at a Buick? A Buick that is sharing the showroom with Enclaves, La Crosses, and Denali's? Mini and Fiat showrooms are populated only with other Fiats and Minis.
 
#13 ·
Sorry, but this 'thing' looks like a badly-done americanized version of an XB to me:

 
#15 ·
I can't believe GM is procrastinating about bringing Opels over as Buicks.
They've always been such bold decision-makers.

How the heck did the Encore happen? Was everyone in charge on vacation?
 
#16 ·
The Spark is beating expectations at around 3500 a month but those were set low to begin with. Buick doesn't have the franchise depth of Chevrolet - so even if the Adam is popular here, I doubt it'd get much beyond 2000 units. Is that enough to recover "several hundred million" in regulatory compliance?

It is possible that one thing giving GM cold feet is the Regal experience. It is a real risk to try it again.
 
#17 ·
The Adam isn't on Gamma. It is built off the existing c 2006 Corsa D platform, which while worthy shows how long the car was in gestation (pre-GFC). So it isn't a modern architecture and not layer build I believe. As a limited import it should still do OK. Again, if marketted at families who own an Enclave, Lacrosse as the main vehicle it should make a nice handbag.
 
#19 ·
The Adam isn't on Gamma. It is built off the existing c 2006 Corsa D platform, which while worthy shows how long the car was in gestation (pre-GFC). So it isn't a modern architecture and not layer build I believe. As a limited import it should still do OK. Again, if marketted at families who own an Enclave, Lacrosse as the main vehicle it should make a nice handbag.
Well, that's worse.
If it is on the SCCS platform that the Corsa D is on, then it's the same platform (or variant thereof) of the 500L. And the 500L is sold in the US.
 
#46 ·
I think the way for GM to successfully sell a small Adam-sized car (at a premium price) is to drive its desirability through the roof using styling. GM can style amazing vehicles (Avant, Granite) and I think that's the only way to break through the automotive marketplace clutter and have people storm the showrooms check-in-hand. Just selling another OBUC, obsolete, butt ugly "coffin-on-wheels" like the Adam could result in an expensive disaster, something successful auto execs assiduously avoid. Nobody gets promoted to the corner office when his name gets attached to a catastrophe like that. Suzuki (and others) couldn't sell OBUCs either.

On the other hand, if you are a GM exec and you have a half billion dollars in hand, maybe you would just go look for a cricket team or a rugby team to sponsor for five years.....
 
#22 ·
Q1 how long does the CURRENT Adam have? if we are down to 3-4 Years NOW + 1+ years between NOW and Buick showrooms can GM make ANY cash on a +/-2 year run B4 the NEXT GEN comes out as I assume GM would NOT build the OLD one AND the new Adam together in the same plant for a couple of years
 
#27 ·
I think the city car concept will find its way to each of the GM brands eventually. To me, the Adam platform and styling are already outdated. Too Euro econo-box looking. I would prefer to see Buick wait for a more refined version, that has sheet metal that is more modern and in tune with Buick styling.
 
#30 · (Edited)
The fact that it would take half a BILLION dollars to get this to US-spec just shows what a laughably incompetent carmaker GM sometimes is. Funny how the Nissan Cube — OBVIOUSLY designed for sale nowhere in the known universe but Japan — could be slipstreamed into the US market with no problems, but America's homegrown makers can't draw from around the globe to flush out its domestic brand lineups.

You wanna talk "cartoonish", megeebee? Look no further than GM's management.
 
#31 · (Edited)
See the outstanding Theophilus Chin design of a 5 door Adam , was in GM Authority of July 2012 . The rear door handles are hidden in the rear quarter panels , the length of the vehicle is slightly longer , but the appearance and balance is improved considerably . The GM 1.4 liter turbo would be a great fit here . The only design change on the front end , see the two door shown in the above thread , is the protruding lip above the grill . The hood and grill design from the 2014 Regal will add an an aggressive and Buick identity to this car . Offering this 5 door in AWD would be wise as would a modified ADAM crossover wagon , perhaps Chin could create something here . Crossovers and smaller SUVs are the hot items now...Is it possible for GM Inside News to run the picture of the Chin designed 5 door Adam ?? Wheel Automotive parking light Tire Car Vehicle
 
#32 ·
GM still tossing Buick Adam ideas around internally.
www.GMInsideNews.com
October 4, 2013
By: Nick Saporito


Just as Buick and Opel publicly comment on their allegiance, speculation has heated up regarding the possibility of Buick bringing over the Opel Adam city car. Despite the talk, sources tell GMI that no decision has been made regarding the issue and that GM is looking at two different options for the car.

Based on an older Fiat-Opel subcompact architecture, the car is not engineered to be federalized in North America. Federalizing a vehicle refers to the process of making the vehicle legal for a specific country of sale, such as crash test standards and fuel economy requirements.

According to sources close to GM product planning, it would cost several hundred million for GM to federalize the Adam to sell in North America under the Buick brand. While that sounds like a lot of money, that’s a relatively minor capital investment to bring a new vehicle to market.

The question GM is tossing around internally is whether or not the Adam would sell in volumes high enough to justify the investment to federalize the car.

Allegedly some are pointing to the success of the Buick Encore and Verano – two small Buick’s that have supposedly beat internal sales projections, as proof that the Adam would sell in high enough volumes to justify bringing it over soon. At the same time, some still doubt that such a small car would do well in the United States, where buyers notoriously love midsize sedans and crossovers.

The second option GM has with the Adam is to wait for the next-generation version of the car. It is possible the next Adam will be based on a PSA Peugeot architecture as part of GM’s new alliance with the French automaker, however sources state that the car could be engineered for sale in North America from day one.

It is unclear what the timetable would be for either option, however apparently GM has not decided on either just yet.

In June GM CEO Dan Akerson publicly stated that he felt the Adam would make a good Buick product, suggesting the car has support from the top ranks. Last month Opel Chairman Karl-Thomas Neumann also mentioned at the Frankfurt Motor Show that the company was looking into offering the Adam under the Buick brand.

A third option would be for GM to just forget the idea of the Adam in North America entirely, however public comments seem to suggest that as the least likely option at this point.
What is the problem?

The Encore is selling at or above their projections as is the Chevy Spark (to the "entry" level of the "A"/"B" segment) that proves there is a market for a GM version of the MINI/500. Offering the Adam in N.A. spreads production costs and generates revenue for both Buick and Opel while bringing more young buyers into Buick-GMC dealers and makes an attractive, economical "second car" for Enclave and LaCrosse owners.

Buick needs to change it's market focus to one where Exterior styling is the attraction as it opens up product possibilities to "non luxury" vehicles, but more "lifestyle" oriented and the market for "style conscious" buyers is larger than just "luxury" buyers although most "luxury" buyers favor styling. Buick needs to attract young "style conscious" buyers that do not currently have the means to buy more expensive offerings but will in the next 5 years. The Adam is a perfect vehicle for them since they do not need large passenger capacity, many live in urban areas where the Adam's size, agility and MPG are advantages.

Buick must be willing to offer a "base" Adam that "Sells" the exterior style and ability for customers to "personalize" their Adam in a way it meets their budget realities so Buick makes a sell.

The real benefit to GM with the "Style" approach to the Adam is that it delays the "real need" of creating a "modern replacement" since most buyers are going to worry more about the "personalized package" than performance allowing Buick/Opel more time to make money on the current Adam and better focus it's replacement.
 
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