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SOURCE: AutoSavant.com

Will General Motors Sell Buick?
October 30, 2008And why wouldn’t it?

By Brendan Moore

10.30.2008

Sources within GM state that there are some executives advocating the sale of Buick to SAIC (Shanghai Automotive Industry Corp) of China, their current joint venture partner for Buick in-country. Such a sale would solve two problems for GM; it would get them some desperately needed capital and it would also address the issue of having too many brands to support by jettisoning one of the brands.

It seems far-fetched to think that Buick would be sold by General Motors, but it also seemed far-fetched that GM would merge with Ford or acquire Chrysler, and it tried to do a deal with Ford several months ago, and is currently trying to buy Chrysler as I type this.

The sale of Buick actually makes more sense than either of those two moves. Buick sells more vehicles in China than the US, its down to three models here in North America, and SAIC would most likely be a willing buyer, thereby ensuring a decent sale price. Buick is a prestige brand in China. Not so much anymore here in the States, and its going to take a lot of marketing money and product to turn the perception around. It’s not looking as if GM is going to have much of either of those to spare for Buick in the near future. If GM is successful in buying Chrysler LLC, then there is even less money for Buick going forward.

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If GM was REALLY REALLY desperate for cash, I could see this happening, but don't think it will.

GM would have to be on its last legs to see such a move. Besides, it would basically equate GM selling off it's future (future growth in China with a valuable brand) to save its current situation. I can't see it panning out.

Still, you can't help but speuclate what jewels could go if things got desperate enough...
 

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i doubt it any such sale would only include buick of china. I dont think gm wants china here in america. unless they provide the hardware to SIAC. Buick is a bought brand like saab is, but buick was bought about what 80-90 years ago? I think they should sell it but that the new owners can not use that name in america.
 

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GM would have to be on its last legs to see such a move.
What would you call it when they are not confident they will have enough money to last through next year?

Now, I don't like this idea any better than the next person, but it makes sense for a couple of reasons.

1-Buick has value to a potential suitor. Some will say sell Pontiac (no value to anyone outside of GM, though I love Pontiac), if you want an example, see the recent attempt to sell Hummer.

2-Buick has an even more starved lineup in the US currently than Pontiac. I actually believe that with another layer of sound deadening, Saturn fills Buicks role nicely.

3-GM needs to trim a line, especially if this merger goes through. (which it still might)
I would much rather it be Hummer, Saab, Saturn, and GMC "FIRST"
 

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I think its crazy. China is the one part of the company worth having. They would be better off giving the whole NA business to the US government for free rather than selling China.

If theyre really that desperate they should file for ch11, because selling such a core asset is a quasi-liquidation.
 

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The sale of Buick actually makes more sense than either of those two moves. Buick sells more vehicles in China than the US, its down to three models here in North America, and SAIC would most likely be a willing buyer, thereby ensuring a decent sale price. Buick is a prestige brand in China. Not so much anymore here in the States, and its going to take a lot of marketing money and product to turn the perception around. It’s not looking as if GM is going to have much of either of those to spare for Buick in the near future. If GM is successful in buying Chrysler LLC, then there is even less money for Buick going forward.
Wonder if Holden would still be providing the LWB Statesman/Caprice variants if this was to go through.
 

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I could see GM dropping Buick from the NA lineup, but they'd be stupid to let Buick go now. Buick is doing really well in China and is bringing GM lots of cash. Why get rid of it when it makes money??
I was thinking the same thing.

And on top of that, Buick is on the verge of product renaissance here in the US and in China - why would you consider this even before those products debut? The LaCrosse, the "Regal" possibly coming to the US, the chance we'd get a new "Skylark" for the lower end of the specturm -- all good points to build on in the near future.

This would be an incredibly foolish move.
 

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Nothing suprises me any more.


.
 

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I don't buy it either. Besides the fact that it does generate sales for gm it would make more sense to me to sell GMC and Hummer IMO.
Then again I have never run a business the size and complexity of GM.
So what do I know!?
 

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Seems like GM would be handing the keys to Rome to Attila. China would have an instant foot in the door and will repeat the success of Japan and now Korea.

I bet a wealthy, government-backed, Chinese owned Buick would be able to succeed better in our market than a GM-owned Buick could. Shanghai Automotive would have the drive to make it happen. They wouldn't have to worry about stepping on other brands and they wouldn't make excuses for not bringing their best stuff stateside. Bham! Buick becomes a major competitor to GM. Plus Buick dealers start carrying Chinese sub-brands.

Years ago I would have thought selling Buick to a Communist country would doom any chance of sales in the US. Now, I doubt most Americans give a [email protected]!t where a car is built as long as it has perceived quality, a great warranty and a lower price than the other guy.

Core brands must live on or die. They can not be allowed to become competitors. Saab and Hummer can be sold because they started life somewhere else not that long ago. Hummer's image hurts GM right now and Saab's saabness has long since disappeared. They could only benefit from a divorce.
 

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1. GM is as close as possible to being bankrupt. Consider the time it would take them to work out a deal and for money to change hands.

2. Would the sale include sending Buickman to China? Maybe that's why they're considering it.

3. GM won't do it because Buick it their gateway into the Chinese market. And everyone knows you need a presence in China. Unless they were really really desperate...which they are. Interesting.

4. If the sale prevented SAIC from using the Buick name in the US, then GM wouldn't be able to charge nearly as much for it.
 

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More fun:

1. Saturn/Pontiac/GMC

2. Pontiac/GMC/Saab

3. Sell/close GMC too. Then: Saturn/Pontiac/Saab

4. 1 big package for sale: Hummer/Saab/Buick

Discuss
 

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1. GM is as close as possible to being bankrupt. Consider the time it would take them to work out a deal and for money to change hands.

2. Would the sale include sending Buickman to China? Maybe that's why they're considering it.

3. GM won't do it because Buick it their gateway into the Chinese market. And everyone knows you need a presence in China. Unless they were really really desperate...which they are. Interesting.

4. If the sale prevented SAIC from using the Buick name in the US, then GM wouldn't be able to charge nearly as much for it.
Gm is not as desperate as the media wanted you to belive. Buick is not going anywhere.
 
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