Manufacturing News

GM China hopes for rebirth of Buick in 2009

GM China sees 2009 as the year of renaissance for Buick, says five new or redesigned Buick models will be launched under the premium brand over the next two to three years.

GM China sees 2009 as the year of renaissance for Buick, which in recent years has lost ground to competing models from Toyota and Honda.
 
Kevin Wale, president of GM China, says five new or redesigned Buick models will be launched under the premium brand over the next two to three years.
 
"The Buick product portfolio was going through the end of its natural lifecycle and is now refreshing," says Wale. "Along with Chevrolet we expect the brand to grow very significantly over the coming year."
 
The new models will add to December's launch of the mid-sized Regal, the first fully redesigned version of the car since the original Regal went on sale in China in 1999.
 
Five new or redesigned models will also be added to the Chevrolet brand in China over the next two to three years, says Wale.
 
As recently as 2005, prestigious black Buicks were the car of choice for many among China's emerging class of entrepreneurs. That year, the brand commanded a total of 7.5 percent of China's total car sales, according to J.D. Power and Associates.
 
Today however, the brand's lineup needs freshening.
 
Buick's best-selling Excelle compact sedan is essentially the same car that Buick introduced here in 2003. Launched in 2006, the mid-sized LaCrosse is newer.
 
But Buick's popular van, the GL8, is the same model that went on sale in 2000. Since these dates, these three models have only had facelifts.
 
In contrast, the Japanese have brought more new models to market. Toyota's third-generation Chinese Camry, for example, was launched in China at the end of 2007. Likewise, the third Honda Accord to be produced in China went on sale in summer 2008.
 
GM's tardiness has taken its toll in sales. Last year the brand sold 279,240 units, down 16 percent over 2007. Honda's sales were up 11 percent in the same period to 422,345. Toyota's rose 19 percent to 452,912.
 
Buick's market share last year was 4.8 percent, compared to 8.1 percent for Honda and 9.6 percent for Toyota.
 
At industry consultants Global Insight, analyst John Zeng says Buick remains a strong, well-regarded brand in China.
 
Nonetheless, he acknowledges the challenges ahead. "The Japanese have been much better at model-changeover," he says. "Buick will have a tough time regaining its lost ground."

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