Buick Tells TTAC To Pump The Brakes, It's All Good - We Never Said It Wasn't

Timothy Cain
by Timothy Cain

Buick is all about China, where the brand claims more than 5 percent market share.

Buick’s achievements in the United States, once storied, are now not nearly so impressive. Buick’s market share in America today is half what it was in 2002, after volume declined in eight of 14 years, tumbling from more than 430,000 sales 14 years ago to 223,055 last year.

This is part of the Buick story we told you yesterday. In touting record global sales as one of the planet’s fastest-growing volume brands, Buick’s General Motors parent company also made clear that the brand is achieving rapidly increased rates of sales because of the Chinese market, even though U.S. sales are declining, albeit marginally.

Following our managing editor’s press of the publish button, we almost immediately heard from Buick.

“We’re launching three all-new products in this market this year (Cascada, Envision, LaCrosse) as well as updating a fourth (Encore) after a long stretch where we were more reliant on successful marketing than new products to maintain momentum in North America,” Stuart Fowle, Buick’s communications manager, told TTAC via email.

“Cascada is not a volume player and the other three, which are, have either not arrived or are only available in limited supply. The Enclave, now in the market for eight years, is pacing for its best July ever.”

That’s fair.

Buick, says Fowle, will post impressive July growth even as the brand prepares to wind down the discontinued Verano, in large part because of the launch of new models. Moreover, the brand’s two established crossovers are selling in healthy numbers. The Encore is a top-flight subcompact crossover competitor. The ancient Enclave and its Lambda platform siblings from Chevrolet and GMC combined for more than 117,000 first-half sales, not an inconsiderable sum for vehicles launched the year before Barack Obama was elected president.

Wrote GM’s Fowle: “Buick reaches much further into the mainstream in China than in the U.S. The top seller is the Excelle, an affordable sedan that wouldn’t make sense for the U.S.”

We would point out here that Buick rather recently reached deep into the American mainstream, as well; that consumers quickly began reacting negatively to Buick more than a decade ago; that Buick’s attempt to reposition itself as a premium brand — if successful — will take time.

Moreover, Buick has been and is selling an affordable sedan in the U.S.: the Verano. It’s Buick’s best-selling passenger car in America. But GM is ending the Verano’s U.S. run. As for the Encore’s superior volume in the U.S. market, we have no desire to argue with facts.

Thus, we’re left to wonder whether Buick’s U.S. outpost suffers from something of an identity crisis. Less a desire to convey Buick’s strength relative to GM’s perceived Buick rivals in the U.S. — Fowle’s email did mention that, “Buick outsells Acura and Infiniti and sells double the volume of Lincoln,” — Buick’s response to TTAC seems more taken up by distracting us from our conclusion that Buick is a Chinese-intensive automotive brand.

As we mentioned yesterday, more than 80 percent of Buick sales now occur in China. If Buick’s U.S. sales in the first-half of 2016 declined 100 percent, global Buick volume would still have increased because of Buick’s position as the fifth-best-selling brand in China, the world’s largest auto market.

GM is entitled to own these facts, to shout from the mountaintops that Buick’s current successes are based almost entirely on its Chinese strength (and despite its diminished status in the United States), to proclaim that GM’s historic efforts to capitalize on the Chinese auto industry’s growth are paying off. But this isn’t the first time Buick has spoken up when seemingly concerned by North American media attention regarding its China-centric nature. It likely won’t be the last.

Timothy Cain is the founder of GoodCarBadCar.net, which obsesses over the free and frequent publication of U.S. and Canadian auto sales figures. Follow on Twitter @goodcarbadcar and on Facebook.

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  • Doug-g Doug-g on Jul 29, 2016

    GM is selling Buicks to people who want Buicks regardless of where those Buick yearning people live. Move along, nothing to see here.

  • Geozinger Geozinger on Jul 29, 2016

    I have to laugh, as part of TTAC's authentication system, I now have to prove my humanity... by doing addition? I thought my humanity will be proven after my expiry and folks can judge what I've done to help my fellow man... All along, I could have proven it with arithmetic... Who knew? If there really is someone at Buick listening: I'd really like to put in a vote for the Adam. We're looking at downsizing for the next vehicle. My wife wants a MINI, I do not. Outside of a Fiat 500 there's nothing really close and she doesn't want a Fiat. Also, I'm amazed at how good that U van looks with updated Buick sheetmetal hung all over it. I think that could be saleable here.

  • Bouzouki Cadillac (aka GM!!) made so many mistakes over the past 40 years, right up to today, one could make a MBA course of it. Others have alluded to them, there is not enough room for me to recite them in a flowing, cohesive manner.Cadillac today is literally a tarted-up Chevrolet. They are nice cars, and the "aura" of the Cadillac name still works on several (mostly female) consumers who are not car enthusiasts.The CT4 and CT5 offer superlative ride and handling, and even performance--but, it is wrapped in sheet metal that (at least I think) looks awful, with (still) sub-par interiors. They are niche cars. They are the last gasp of the Alpha platform--which I have been told by people close to it, was meant to be a Pontiac "BMW 3-series". The bankruptcy killed Pontiac, but the Alpha had been mostly engineered, so it was "Cadillac-ized" with the new "edgy" CTS styling.Most Cadillacs sold are crossovers. The most profitable "Cadillac" is the Escalade (note that GM never jack up the name on THAT!).The question posed here is rather irrelevant. NO ONE has "a blank check", because GM (any company or corporation) does not have bottomless resources.Better styling, and superlative "performance" (by that, I mean being among the best in noise, harshness, handling, performance, reliablity, quality) would cost a lot of money.Post-bankruptcy GM actually tried. No one here mentioned GM's effort to do just that: the "Omega" platform, aka CT6.The (horribly misnamed) CT6 was actually a credible Mercedes/Lexus competitor. I'm sure it cost GM a fortune to develop (the platform was unique, not shared with any other car. The top-of-the-line ORIGINAL Blackwing V8 was also unique, expensive, and ultimately...very few were sold. All of this is a LOT of money).I used to know the sales numbers, and my sense was the CT6 sold about HALF the units GM projected. More importantly, it sold about half to two thirds the volume of the S-Class (which cost a lot more in 201x)Many of your fixed cost are predicated on volume. One way to improve your business case (if the right people want to get the Green Light) is to inflate your projected volumes. This lowers the unit cost for seats, mufflers, control arms, etc, and makes the vehicle more profitable--on paper.Suppliers tool up to make the number of parts the carmaker projects. However, if the volume is less than expected, the automaker has to make up the difference.So, unfortunately, not only was the CT6 an expensive car to build, but Cadillac's weak "brand equity" limited how much GM could charge (and these were still pricey cars in 2016-18, a "base" car was ).Other than the name, the "Omega" could have marked the starting point for Cadillac to once again be the standard of the world. Other than the awful name (Fleetwood, Elegante, Paramount, even ParAMOUR would be better), and offering the basest car with a FOUR cylinder turbo on the base car (incredibly moronic!), it was very good car and a CREDIBLE Mercedes S-Class/Lexus LS400 alternative. While I cannot know if the novel aluminum body was worth the cost (very expensive and complex to build), the bragging rights were legit--a LARGE car that was lighter, but had good body rigidity. No surprise, the interior was not the best, but the gap with the big boys was as close as GM has done in the luxury sphere.Mary Barra decided that profits today and tomorrow were more important than gambling on profits in 2025 and later. Having sunk a TON of money, and even done a mid-cycle enhancement, complete with the new Blackwing engine (which copied BMW with the twin turbos nestled in the "V"!), in fall 2018 GM announced it was discontinuing the car, and closing the assembly plant it was built in. (And so you know, building different platforms on the same line is very challenging and considerably less efficient in terms of capital and labor costs than the same platform, or better yet, the same model).So now, GM is anticipating that, as the car market "goes electric" (if you can call it that--more like the Federal Government and EU and even China PUSHING electric cars), they can make electric Cadillacs that are "prestige". The Cadillac Celestique is the opening salvo--$340,000. We will see how it works out.
  • Lynn Joiner Lynn JoinerJust put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
  • Lynn Joiner Just put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
  • Ollicat I am only speaking from my own perspective so no need to bash me if you disagree. I already know half or more of you will disagree with me. But I think the traditional upscale Cadillac buyer has traditionally been more conservative in their political position. My suggestion is to make Cadillac separate from GM and make them into a COMPANY, not just cars. And made the company different from all other car companies by promoting conservative causes and messaging. They need to build up a whole aura about the company and appeal to a large group of people that are really kind of sick of the left and sending their money that direction. But yes, I also agree about many of your suggestions above about the cars too. No EVs. But at this point, what has Cadillac got to lose by separating from GM completely and appealing to people with money who want to show everyone that they aren't buying the leftist Kook-Aid.
  • Jkross22 Cadillac's brand is damaged for the mass market. Why would someone pay top dollar for what they know is a tarted up Chevy? That's how non-car people see this.
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