General Motors 4.0: What is a Buick?

General Motors is going through a metamorphosis, as you know. Actually, this isn’t the first time. GM 1.0 was the emergent GM—a collection of disparate and dysfunctional brands (Chevrolet, Oakland/Pontiac, Oldsmobile, Buick and Cadillac) and parts makers assembled before and immediately after WWI by William Durant and others. GM 2.0 is the professional GM created by Alfred Sloan, starting in 1923. Sloan and his successors created an organizational structure focused on distinct market segments bolstered by a culture of strong styling and R&D. GM 2.0 worked from the ‘20s through the ‘60s and generally is viewed as GM’s best incarnation. GM 3.0 is the cancerous GM beset by bad labor contracts, difficulty coping with international competition and excess capacity. GM 3.0 begins roughly with the oil crisis of 1973 and extends to 2009. GM 4.0 is the post-bankruptcy GM. This is part three in a series that covers issues with the direction of GM 4.0.

Oddly enough, some of the most perplexing questions I get asked by normal people as editor of an automotive publication involve Buick. Most of them are along the lines of “Why did GM keep Buick?” and “What the heck is a Buick anyway?” Not a great place to be, if you’re GM. GM knows it has an issue here in the U.S. (Buick, remember, is a hot brand in China) and it is attacking the problem. Buick recently announced the new 2010 Buick LaCrosse, a car that gives us a chance to think about how GM is and should be thinking of the future of the brand.

As I suggested in my last blog, with the off-loading of Saturn, Pontiac, Hummer, and Opel, GM has a cleaner brand lineup. Buick clearly needs to fall between Chevrolet at the low end and Cadillac at the high end in the new tripartite GM (I am assuming GMC remains and Chevy trucks are sold elsewhere).  If Chevys are priced between $15 and $30k, and Cadillacs between $35 and $60k, Buicks should logically cost between $25 and $45k. These numbers aren’t exact; they represent the meat of the cars that will roll off dealer’s lots.

Buick seems to understand this.  I mentioned last time that Buick needs to be where Acura is, in some sense. So, at the LaCrosse launch, who were the target brands for Buick? You guessed it: Acura, Infiniti, Lexus.  I only hope that Buick deeply understands that being a cheaper Acura or Infiniti won’t work. The launch talked about that and it scares me. I think being a bit less expensive is fine, but Buick needs a concept of how it will be better (for less). Fortunately, Acura and Lexus, and to a lesser degree Infiniti, are middle-of-the-road brands. The great thing for Buick is that it is easier to trump the middle than it is to trump a brand that is clearly defined and passionately positioned (just ask Lamborghini how hard it is). Mercifully, Buick didn’t mention BMW as a target.

I also said that all GM brands need to have an aspirational strategy. I think Buick sees this, in part through its pricing targets, but even more in its styling plan. During recent history, I’d simply say Buicks have been bland and ugly. The LaCrosse is different. It is bold, and you might not love it, but clearly the design team has created interesting surfaces. The interior—designed in GM’s Chinese studios—is particularly well done, at least from photographs (we’ll be in the car soon to confirm).

That’s a good start, if Buick can do it consistently (the Enclave is really the first shot in this Buick turn-around and like many first shots it only partly succeeds). But I think there has to be more. The Buick management team sounds a little defensive (which is only human at this stage for a GM brand), which is worrying. What is more worrying is their tendency to express that defensiveness through the brand kiss of death: the laundry list. “Our car is luxurious, race-ready, techno-driven, safe, and high quality, with appeal to babies and octogenarians.” That won’t work.

I wish that Buick would latch on to one of the two obvious openings in the market. The first one is experiential quality. I think this is actually what it’s going for, but it doesn’t express it well, which makes me worry the market will miss it. Or even worse, the engineers might not do it.

The idea is simple. Quality in the future isn’t about reliability. That’s a commodity. Yeah, Land Rover, and Mini, and Smart, and Saab have some real problems, but for the most part a Cadillac, a Honda,  a Mercedes-Benz, a Toyota, a Mercury, and a Buick are the same in terms of reliability. The market believes there are differences, but Buick isn’t going to convince you that a Buick is more reliable than a Lexus.  So don’t try. Or, rather, flank ‘em.

The core Japanese brands that you’re targeting have quality weaknesses. For the most part, their design isn’t very sensual. None of the premium Japanese brands consistently has attractive exterior design and superb interior design and detailing.  I think Buick sees that.

But wait, there’s more to experiential quality. Buick also sees that the feel of quality is an opportunity. It expresses it as “quiet.”  There is more to this though, because Buicks need to feel more solid and substantial than the Big Three premium Japanese brands. Possible, but I think that will only go so far. More of a requirement than a competitive opportunity.

Then there is control. The Buick design language will appeal, I think, to women (and I assume Chinese people and design-sensitive men). Buick doesn’t state that as a target, but it is there, and wise I think.  In countless interviews with women as part of our road tests, a consistent theme emerges: women like cars that give a feeling of control. That, they say, means low body roll, good turn in, relatively quick steering ratios, good sightlines especially to the corners of the car, controls in the right place and properly weighted (not too light, not too heavy), and responsive drivetrains with good low-end and mid-range pull.  That’s basically an enthusiast checklist, minus noise and high-rpm power. Gordon Murray (of McLaren F1 fame) has written similar checklists.  I don’t think Buick gets this with a passion, but they could. This is the beginning of the soft underbelly of the competition.

The rest of the soft underbelly lies in functional superiority. Buick could exploit the packaging conservatism of the competition. Why doesn’t the LaCrosse have a hatch? Is there a four-door “coupe” and “coupe-wagon” coming? Is AWD available on every platform? How can they be fast followers (like Lexus) in exploiting packaging innovations from A and B class cars (e.g. the Fit rear seat)? How does every Buick come with an eco-feature that you’re reminded of when you stop to fill up (and your gas bill is lower than your neighbor’s)?

All this means is that Buick needs to make beautiful cars that people can really use. Luxury isn’t opulence anymore. Luxury is the pleasure of things that actually work—aesthetics and control and convenience. Would’ve made more sense to me to call that a Saab, but if they build it I might be able to learn that it’s a Buick.

Related:

Comments

The Stig

Here's an even shorter answer - a Buick is something that now belongs in China.  It sells well there - so let it sell well there.  It's one less brand to have to shell out marketing and support for in the States and they can more fully focus on the Chevy, GMC, and Cadillac brands.

 Besides, it really sounds like from the tone of the above article that GM still doesn't 'get it' for establishing this brand in the mind of consumers.  That will not help GM's emergence from bankruptcy.  Every model they bring out now has to be a game-changer, not just more of the same rehash trying to keep up with competition from five years ago.

Mena

This car sure doesn't look like something from 5 years ago. Very nice!!

terrymetcalfe

crash courses

I agree it does look nice!

But at the price it is suggested to retail at would it be able to compete with the likes of BMW, Mercedes - i think not!

guitaro

I drive a Buick. A 1996 Buick Regal Custom. I paid $3,000 for it used in May of 2008. Since then, I have replaced the following parts:

 

  • Automatic belt tensioner, alternator, battery- $279
  • Fuel Filter- $60
  • Fuel pump- $379 
  • AC Compressor $750

I've spent a total of $1,468 repairing this car. That's almost half the price I paid for this car. It came with a Carfax report that verified it as a "good car" with no salvaged title, odometer roll backs, or problems. Yet, $1,468 later I have to wonder if GM isn't keeping Buick because it's popular in China. Like we really need a middle class luxury brand. Like with rising unemployment, anyone who isn't rich, is buying new cars? I'm still driving a used car and pouring whatever I have or can borrow, just to keep it on the road. GM should've saved Pontiac. At least we'd have a brand of cars that people IN THIS COUNTRY want to drive. Thanks for nothing GM!!

 

 

"... and miles to go before I sleep..."

rbruhn@windstre...

 Just look around you. Who do you see driving Buicks? Geezers. Seems to me that's Buick's target demographic--Tiger Woods notwithstanding. Also, see where they target their ads--at the older crowd. Plenty of those folks around, too; and many of them are intensely pro-American, Republican and not willing to spring for a Lexus. Why, in the past, have Buicks looked like Volvos? I'd think they'd want to stick with a design that would appeal to that crowd--and the Chinese.

Hahn

Hahn

Follow this link to see what Buick should be building, since there will no longer be a Pontiac G8.

<image.wetpaint.com/image/1/h0Aa0UikAO3lYsi8N0U84w537036/GW433

Trust me - it's safe. 

thewizardofaz@c...

You know when the last time a Buick caught my eye and made me wish I had one? The 1965 Buick Riviera. It was a gorgeous and sexy car. It was solid. Since then I haven't noticed a Buick once, not one time. Buick's image is horrible. It has made horrible cars in the last 30 years. Not one car qualifies as a "stop and look". Buick has to get it back. The image Buick has had is like when you have two candidates, both of whom are not qualified in any sense, but you have to choose one. Sad state if affairs. This new one is a start. 

rickt2@prodigy.net

I've inherited two Buicks - one was 1996 Regal and the last a 2002 Century. These are the only US cars I've owned. The Regal ran flawlessly until meeting an untimely end in a highway roll-over: the Detroit iron may have saved my life. I've put 50,000 miles on the Century and it has been without sin and I intend to keep it as a second car at my Minnesota cabin for many years. For the kind of driving I do - 90% highway - my Buicks have been cushy, quiet and given decent mileage. (The Century gives an honest 30 mpg: about what you'd expect from a 175 HP 6cyl.) Considering that the price point is far closer to a Camry than the Lexus discussed above, I don't see the flaw. (I doubt very much that the 2010 Buick will be pushing BMW the price point for One Series, much less the Five. MSRP and real world pricing are not the same in my experience. Watch, you'll be able to get an entry level model, which will be very nicely equipped, for around $26,000 and $35,000 will get every bell and whistle.)

 The quality bar for cars these days is very high. Unless JD Powers is out of its mind, Buick appears to meet or exceed it. So why not buy one? European drivers will at least look at the "home team" - if they didn't France and Italy wouldn't have auto industries. I don't think anyone should buy an inferior car or a car that doesn't suit their need because it's "Made in the USA." However, I don't think that the sins committed by Detroit in the 70's and 80's should keep prospective buyers out of the showroom because they see "Made in the USA." Yes I know about US plants producing Japanese cars but do remember that every "dollar added" is going to Japan and Korea. That's the money that funds R&D, styling etc. The demise of the domestic auto industry would be a terrible blow to the country. Might be something to think about when you're chosing between a 2010 Buick and an Avalon or 6 Cyl Accord/Camry.  

thomsonm5@cox.net

I bought a 2009 Buick Enclave last December and find it to be a great car! It drives very well, has all the amenities you could want, and has been trouble-free (so far). Looking at the rest of the Buick line, I would be happy to have any of them, although my dream car is still a Porsche 911 (I've had a 944 for 25 years and counting - it was no small expense to bring back to a reasonable condition a few years ago but now runs well). Needless to say I don't agree with the premise of the column nor with the negative comments that followed. 

dgforslund@aol.com

A Buick is a Buick.

 While it has good recognition in China, it has had it's ups and downs here in the US.

Keep the Buick name in China.

In the US change the name to LaSalle, a name once used by Cadillac.

Change Cadillac dealers and Buick dealers to Cadillac - La Salle dealers and leave Chevrolet dealers be Chevrolet dealers. (Forget GMC- truck buyers don;t purchase high brand trucks in volumn: ie Lincoln's experience.)

Cadillac - LaSalle  dealers will now have a line-up to compete with Acura, Lexus, Infiniti, BMW, Mercedea etx without downgrading the Cadillac name, but with the possiblity to move the name up-ward.  This will also give dealers the breadth of product to have a profitable organization.

 GM will also have  smaller marketing and organization staffs (only 2 product lines),  dealers with a broader market coverage, and a new name to promote.

Some people may have negative thoughts on the Buick name, but at least neutral thoughts with the new LaSalle name.  (You can't have negative thoughts on something you have never tried.)

Everyone loves something new!  A win-win situation.

dolorean

As I suggested in my last blog, with the off-loading of Saturn, Pontiac, Hummer, and Opel, GM has a cleaner brand lineup. Buick clearly needs to fall between Chevrolet at the low end and Cadillac at the high end in the new tripartite GM (I am assuming GMC remains and Chevy trucks are sold elsewhere).  If Chevys are priced between $15 and $30k, and Cadillacs between $35 and $60k, Buicks should logically cost between $25 and $45k. These numbers aren’t exact; they represent the meat of the cars that will roll off dealer’s lots.

Isn't this exactly what Mercury was/is supposed to be for Ford? And we've seen how successful that's been. I think your thesis and GM's needs some work.

Tom Martin

Except that Mercury offers essentially zero content over Ford for the expected premium. Buicks have to offer substantially more content than Chevys to justify the price. The nature of the extra content is what I describe above. For GM, pricing and volume are the goal, content and positioning are the keys to the strategy.

can

thank you

Dantel Örgü Oyunlar Dersler

Winding Road Seeks Beta Testers

155.jpg

  Greetings, drivers (and web surfers)! We’r...

Nov 06, 2009 by John Beltz Snyder

First Look: 2010 BMW M3 GTS

GTS

At long last, a hardcore, track-ready version of t...

Nov 06, 2009 by Steven J. Ewing