GM Executives Aren't Worried About Buick's Future After Opel Sale

Steph Willems
by Steph Willems

General Motors’ sale of Opel to France’s PSA Group sparked much debate on what the European division’s loss would mean for Buick, which holds strong product ties with the German manufacturer.

The new Buick Regal, which bowed today in liftback and wagon bodystyles, shares its architecture with Opel’s new-for-2017 Insignia. At the 2018 model’s Detroit-area launch, GM’s executives downplayed the impact on its Buick division, claiming there’s no disruption in sight for the brand.

According to Car and Driver, GM’s vice president of global Buick and GMC, Duncan Aldred, isn’t concerned. “The sale of Opel will have no impact on the fresh new lineup Buick is building out,” he claimed.

GM stands to gain $2.3 billion from the completed sale of Opel, its UK subsidiary Vauxhall, a smattering of assembly plants across several countries, and its main engineering center. GM Financial’s European operations are also part of the deal.

Besides the Regal, which is built in Rüsselsheim, Germany, Buick draws its Cascada convertible directly from the Opel lineup. The Encore, badged as an Opel Mokka in Europe, comes to the U.S. by way of GM Korea, while the Envision sails from a factory in China (where the model first debuted). The LaCrosse sedan and full-size Enclave crossover, of course, are U.S.-built.

The sale comes at a significant time in the life of the Regal, but Mark Reuss, GM’s executive vice president of global product development, purchasing, and supply, said the model isn’t threatened by the sale. (Market direction is another matter.)

“This is very much part of our portfolio plan,” said Mark Reuss. “As we said, Opel and the engineering/production piece of this is very much intact for all of our global platforms. So, you know, no impact.”

While the deal isn’t complete, Reuss claimed that all product-related issues would be solved by the time GM officially hands off its operations to Opel. That would keep Opel-based Buicks flowing to U.S. dealers for the models’ current generation, at least. He wouldn’t say whether GM would pay PSA for development work in the future.

Buick has said in the past that utility vehicles — much like with other automakers — are a big part of its focus. It’s easy to see the Cascada being dropped at the end of this generation, leaving the Regal as the only major question mark. Still, the two automakers aren’t parting completely.

In a continent rapidly adopting new laws limiting the use of gasoline and diesel-powered vehicles, PSA needs electric vehicle technology. It had its eye on Chevrolet’s Bolt, sold in Europe as the Opel Ampera-e. Part of the deal between the two companies includes a collaboration on electrification projects designed to give both companies an edge in the expanding segment.

[Image: Opel]

Steph Willems
Steph Willems

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  • Asdf Asdf on Apr 06, 2017

    Buick is synonymous with China already now, so no doubt it'll become GM's "Crap Made In China" brand for the next generation of vehicles, even in the US - that is, if anyone outside of China still cares about Buick at that point at all...

  • Armadamaster Armadamaster on Apr 07, 2017

    How Buick survived bankruptcy is still mindboggling to me. And it still looks like a Saturn, except now they look like ten year old Saturns.

  • GregLocock Car companies can only really sell cars that people who are new car buyers will pay a profitable price for. As it turns out fewer and fewer new car buyers want sedans. Large sedans can be nice to drive, certainly, but the number of new car buyers (the only ones that matter in this discussion) are prepared to sacrifice steering and handling for more obvious things like passenger and cargo space, or even some attempt at off roading. We know US new car buyers don't really care about handling because they fell for FWD in large cars.
  • Slavuta Why is everybody sweating? Like sedans? - go buy one. Better - 2. Let CRV/RAV rust on the dealer lot. I have 3 sedans on the driveway. My neighbor - 2. Neighbors on each of our other side - 8 SUVs.
  • Theflyersfan With sedans, especially, I wonder how many of those sales are to rental fleets. With the exception of the Civic and Accord, there are still rows of sedans mixed in with the RAV4s at every airport rental lot. I doubt the breakdown in sales is publicly published, so who knows... GM isn't out of the sedan business - Cadillac exists and I can't believe I'm typing this but they are actually decent - and I think they are making a huge mistake, especially if there's an extended oil price hike (cough...Iran...cough) and people want smaller and hybrids. But if one is only tied to the quarterly shareholder reports and not trends and the big picture, bad decisions like this get made.
  • Wjtinfwb Not proud of what Stellantis is rolling out?
  • Wjtinfwb Absolutely. But not incredibly high-tech, AWD, mega performance sedans with amazing styling and outrageous price tags. GM needs a new Impala and LeSabre. 6 passenger, comfortable, conservative, dead nuts reliable and inexpensive enough for a family guy making 70k a year or less to be able to afford. Ford should bring back the Fusion, modernized, maybe a bit bigger and give us that Hybrid option again. An updated Taurus, harkening back to the Gen 1 and updated version that easily hold 6, offer a huge trunk, elevated handling and ride and modest power that offers great fuel economy. Like the GM have a version that a working mom can afford. The last decade car makers have focused on building cars that American's want, but eliminated what they need. When a Ford Escape of Chevy Blazer can be optioned up to 50k, you've lost the plot.
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