Automotive News
Automotive News
February 2, 2015
Article Quotes:
General Motors is sharply boosting Buick Encore production for the U.S., a bet that the petite crossover will continue to sell big despite a slew of coming rivals. GM has expanded production capacity to lift U.S. Encore supply by roughly 50 percent, diverting more of them from assembly plants across three continents.
The Encore's success is validation of a gamble by GM two years ago to be among the first automakers to introduce a subcompact crossover to the U.S. But juicing production represents another big bet as several competitors prepare to join the segment, including the Honda HR-V, Mazda CX-3 and Jeep Renegade, along with the Chevrolet Trax from Buick's sibling brand.
Aldred wants to capitalize on the Encore's sizable head start. He expects the Encore to emerge as Buick's top-selling nameplate this year, even after sales surged 53 percent last year to 48,892, putting it at No. 3 in the lineup behind the Enclave large crossover (62,300) and the LaCrosse sedan (51,468).
"I've stuck my neck out to get more Encores, because if you haven't got them, you're not going to sell them," Aldred said.
Encore sales have blown past industry expectations and surprised GM, which launched it in early 2013. Back then, IHS Automotive predicted sales of nearly 25,000 for 2015 -- about half of last year's tally.
GM makes the Encore and its sibling, the Opel Mokka, at assembly plants in Mexico, Korea and Spain. U.S. dealers say that makes it tricky to secure a steady supply of them. There's typically a four-month lag from the time dealerships order Encores to when they're delivered, roughly double that of a U.S.-built car, dealers say.
Keith Hudson, dealer principal at Jim Hudson Buick-GMC-Cadillac in Columbia, S.C., says the Encore tends to draw traditional import buyers. He says the sweet spot is people ages 45 to 65, often downsizing empty nesters.
"We could sell more if we received more," Hudson says. "People love the vehicle."
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Buick is considering a more powerful engine option for the Encore as it looks to extend the small crossover's sales success, the brand's top executive says.
The Encore, launched two years ago, comes only with a turbocharged 1.4-liter, four-cylinder engine that delivers 138 hp. "I'd be lying if I said we're not evaluating that," Duncan Aldred, U.S. vice president of Buick-GMC, said in an interview.
Aldred didn't mention engine possibilities. On the Opel Mokka in Europe, a rebadged Encore, GM offers a 1.6-liter gasoline engine and a new, aluminum 1.6-liter turbodiesel, in addition to the base 1.4-liter.
Adding a more powerful engine could drive incremental sales and help Buick keep pace with an influx of competitors. Buick sold 48,892 Encores in 2014, making the vehicle the brand's No. 3 seller behind the Enclave large crossover and the LaCrosse large sedan.
"I'm looking to grow volumes, and we're always looking at customer feedback for what changes we need to make," Aldred said. "But there's always a trade-off between cost and benefit."
