Buick Steers Into Passing Lane Toward Premium Status

[BUICK RACER]

Buick Steers Into Passing Lane Toward Premium Status

WardsAuto.com

By Herb Shuldiner

Mar 29, 2004

NEW YORK ? Buick Div. plans to move up from competing with Toyota and Honda brands to premium status, says General Manager C.J. Fraleigh. "Buick will completely transform itself," he says.

Buick?s trucks started the trend, which will continue with the introduction of the LaCrosse sedan this fall, along with the new Terazza minivan.

New Buick LaCrosse will lead Buick?s effort to become premium brand.

These new products and others that will be introduced next year are part of a $3 billion new-product investment GM is making in Buick, which had been faltering in the marketplace.

Despite an outstanding first quarter, in which Buick will see a sales increase over year-ago, the division will suffer a high single-digit decline this year. "Then we'll see steady growth like Cadillac is doing," Fraleigh predicts.

The LaCrosse goes into production in the Oshawa, Ont., Canada, plant during the second week of September, and after the first 12 weeks should be at 57 jobs per hour.

LaCrosse will sell between 80,000-100,000 units in a full year, Fraleigh says. "That's what (Vice Chairman) Bob Lutz says, and I wouldn't want to contradict him." Production capacity can be expanded beyond 100,000 units should demand warrant the move.

"We're (also) going after the premium end of the minivan market with the Terazza," Fraleigh says, forecasting initial sales in the 20,000- to 30,000-unit range.

The new models will help Buick compete upmarket. "We will not make Buick a performance brand," he says. Coming Buicks will feature gracious style and quiet interiors, characteristics that will help Buick earn credibility. "Then we'll work our way back (to premium status)."

Fraleigh predicts the LaCrosse will be the first product to start that process. It will conquest both import and domestic makes, he says. The Park Avenue/LeSabre replacements will continue Buick's upscale move. "We will move up from conquesting Toyota to conquesting Lexus.

"The LaCrosse will be a no-apologies vehicle," Fraleigh says. "It hints at where we want to go with Buick." He reveals that Buick spent more money to give the LaCrosse premium quality. For example, new elements have been added to the vehicle to make it "supremely quiet."

One outcome of this strategy will allow Buick to lower its age demographics. However, Fraleigh admits the most critical buying segment in the auto industry is the older customer, noting the average age of car buyers is 49.

Buick's opportunity is to retain (older) loyal buyers and bring in younger customers, he says. "That's what we're trying to do. We don't want to exclude older buyers."

In addition to overseeing Buick, Fraleigh also is responsible for GMC-Pontiac. "Our biggest opportunities are to leverage the strength of the GMC brand and bring Buick and Pontiac back to health and growth ?where GMC is right now,? he says.

Fraleigh?s other challenge is to manage and maintain volume of current products until new products reach the market. "We have to make those (current) vehicles more attractive," he says.

Quality also will play a big part in moving Buick upmarket. Currently, Buick is the highest-ranking non-luxury brand in the J.D. Power and Associates initial quality survey. Buick's long-term quality story is even better, Fraleigh says. Buick ranks third, after Lexus and Infiniti, in the J.D. Power 3-year long-term quality survey.

Later this year, Buick will introduce special editions of the Park Avenue Ultra and LeSabre that will seek to emulate the success the division experienced with a Centennial edition of the LeSabre.

Buick buyers responded enthusiastically to this deluxe edition, and that gives Fraleigh confidence future customers will pay premium prices for the brand.

He confirms Buick will drop supercharging when the new-generation Park Avenue and LeSabre models arrive. Built on new rear-wheel-drive architecture, these flagship models will offer an optional V-8.

[Bill Stoneberg]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> The new models will help Buick compete upmarket. "We will not make Buick a performance brand," he says. Coming Buicks will feature gracious style and quiet interiors, characteristics that will help Buick earn credibility. "Then we'll work our way back (to premium status)."

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Its too bad they dont focus on performance anymore. But as long as they make money and stay in business, I can be happy.

[Centurion]

Roberta, thanks for providing this information here.

The fact that Buick's shift to "premium status" is viewed as a NEW concept shows how terribly muddied the marque's image has become during the last thirty years. I still think of Honda and Toyota as entry-level cars that Ford, Chevrolet, and Saturn should be competing against. Yes, I know that Honda and Toyota have added higher-priced offerings and have moved somewhat upscale, especially as the Korean brands have taken a bite out of the entry-level marketplace. Still, it is distressing that the marketplace has viewed Buick as yet another Toyota and Honda competitor rather than something more special.

Regardless of the merits (or lack thereof) of the post-1972 Skylarks, Apollos, and Skyhawks, GM's decision to offer badge-engineered cars throughout all of its divisions during the mid-1970's through early-1990's timeframe was a terrible mistake. Whenever I see an '80's vintage Cadillac Cimarron or Buick Skyhawk with peeling paint, trim that is falling off, and engines that sound like they belong in a lawn mower, I ask again why GM cheapened its best brands by selling thinly-disguised versions of its cheapest cars.

I commend current GM management for finally recognizing that each brand should not attempt to be all things to all car buyers. I'm thankful that there will be no cheap Buicks. What a relief to realize that someone at GM finally recognizes and wants to restore Buick to its historic mission and role in the marketplace -- even if the general car buying public has forgotten what that mission was.

[Guest Skyking]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">

The LaCrosse goes into production in the Oshawa, Ont., Canada, plant during the second week of September, and after the first 12 weeks should be at 57 jobs per hour.

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It still bothers me to see these cars manufactured outside the U.S.

[larrygs71]

GM is not gonna pull this off. One big mistake in their logic. Ex GM customers that switched to toyota, honda, nissan etc aint commin back. They have had their fill of GM and have no reason to come back. They are tired of the run around at the dealers, the bad transmissions, the leaky intakes, the dexcool problems etc. All my friends who have went rice aint comin back. Just my opinion

Larry

Muskegon mi

71 stage 1

[Guest my3buicks]

That Herb guy must be an idiot for comparing Buick to Honda and Toyota. While Buick has lost some of it's image over the years, well, let's see, a Park Ave or an Accord, wouldn't be much of a choice for me. Well, let's be more realistic, a Regal GS or an Accord, uhm, same answer!

Attached is another Pic of the Velite that is going around.

[BigFella]

My thought is that GM is missing the bigger picture here...the Caddy brand seemed to have figured it out but why do they keep saying "Compete with xyz"...shouldn't it be to lead the market segment they are targeting? In essence to have a brand like Lexus try to catch up to Buick? GM still has enough power to be the company to catch but every article talks about playing catch up with the other companies. It just seems to be a little off to me...I know a Buick right now is not a Lexus but it would not take alot of work to make it better than...and with the introduction of all the new models shouldn't it be now?

When they build the velite or whatever it will be called I'll be in line for one! What a great looking car that is...

[Centurion]

Keith, thanks for the great Tiger shot with the Velite!

Larry, I understand your point. Certainly, there are hundreds of thousands of car buyers who have been permanently lost to the Japanese brands. Does that mean that GM should just give up? Certainly not! Product is <span style="font-style: italic">everything</span>, and the right product will attract buyers. While GM may never again dominate market share as it did during the 1960's, there remains a substantial market comprised of those seeking a quality, American-brand car. And, as I go to other forums devoted to recent model cars, I see that Buicks like the current Regal GS have gained a small but enthusiastic following among people in their 20's and 30's. There are a lot of people who REALLY want to see Buick succeed with this transformation.

[86 2dr.ltd]

Well Im feeling it all looks like a step in the right direction as far as styling and quality. I dont see why they cant still have some performance. All divisions will still be sharing engines anyhow, so maybe their just talking abut performance visual appeal ? I am worried however, I hear there are plans to put Chevys and Pontiacs on the same platforms as the "upscale" Buicks. I fear that will not be good. The Buicks will once again get pegged as old folks cars with conservative styling if Chevy and Pontiac do their thing on the same platforms w/same engines, I just know it.

I agree 100% with BigFella "lead not follow" They have got to play catchup now because that is where they have placed themself, but thinking chase Lexus is the wrong attitude. Its got to be done in the styling department because GM is still behind somewhat in the power per displacement catagory and I hate to say it but I believe the Japanese and Germans will be hard to catch in the engine department. They have been building theses high output reliable smaller engines for decades.

[JohnD1956]

"One outcome of this strategy will allow Buick to lower its age demographics. However, Fraleigh admits the most critical buying segment in the auto industry is the older customer, noting the average age of car buyers is 49.

Buick's opportunity is to retain (older) loyal buyers and bring in younger customers, he says. "That's what we're trying to do. We don't want to exclude older buyers."

A friend went to a local Buick/ multi GM dealership, where according to him, the Buicks were lackluster. All the LeSabres were "odd colors, no options, and plastic hubcaps like you could buy at NAPA". He asked the salesman if any of the cars had an xm radio at least? and the sales man told him, no way. Our average customer is 61 years old and they don't want to pay for radio service.

This is the stupidest thing I've heard and seen from the folks at Buick. Show me a 30 year old buyer who does not want performance and I'll show you a 30 year old buyer who has no brand loyalty and could care less about what they drive. If Buick does not put some effort into performance, you might as well buy a Ford focus!

What do you suppose they will put in that Veliete? A smooth 2 cylinder?

[Guest COMPACTBC]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The new models will help Buick compete upmarket. "We will not make Buick a performance brand," he says. Coming Buicks will feature gracious style and quiet interiors, characteristics that will help Buick earn credibility. "Then we'll work our way back (to premium status)."

</div></div>

Why does Buick insist on putting weak/underpowered engines in their new designs, such as cars like the Reatta? Do they really think they are going to get a younger or even an older buyer this way? If they want to compete with Lexus they better have an engine in their new designs that will equal or do better than a Lexus. Does the "quiet" interiors mean the same drab color/trim choice that they had in the last Riviera models? If they want to compete they need to open their eyes and see what the competition is offering.

The Velite is a big step in the right direction, but only if it has and engine with some respectable POWER options, and offer both a convertible and/or a retractable hard top. Just my 2¢ from a senior Buick lover.

[86 2dr.ltd]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The new models will help Buick compete upmarket. "We will not make Buick a performance brand," he says. Coming Buicks will feature gracious style and quiet interiors, characteristics that will help Buick earn credibility. "Then we'll work our way back (to premium status)."

</div></div>

Why does Buick insist on putting weak/underpowered engines in their new designs, such as cars like the Reatta? </div></div>

Because Chevy, Caddy and Pontiac are the performance divisions and Buick will remain in the harness, picking up the scraps that Pontiac and Caddy havent claimed.

Actually the 3.6 DOHC is supposed to be a strong engine, but its going to be a option. hardly matters because a Pontiac will have the same drivetrain in a most likely more attractive(performance)package.

LaCross is released next fall I guess. I hope people buy it. If it doesnt make a big impact, Im worried. I think its nice but I think they could have dressed it up better. If they are going after a share of Lexus, Acura, Audi, BMW & whatever, isnt it silly to say we will not make Buick a performance brand ?

If you want to compete you have to perform, lead not follow.

Fix the back end of that LaCrosse please.