Buick Bounces Back with Younger Buyers
Buick, the venerable General Motors Co. brand long maligned as catering to elderly buyers, is enjoying a rebirth in the United States and drawing younger, more affluent buyers, thanks to improved quality and styling, The Detroit News reported. Just a year ago, the brand was headed for the scrap heap until then-GM Chief Executive Fritz Henderson convinced President Barack Obama's auto task force that Buick was worth saving, particularly in the booming Chinese market, as the automaker shrank from eight to four brands.
"They are making definite improvements in the U.S.," said Aaron Bragman, research analyst with consultant IHS Global Insight in Troy. "They made the right decision. To kill Buick would have been crazy. It's one of the most important brands in the Chinese market."
Last month, Buick sales in the United States rose 76 percent, and market share of the new Buick LaCrosse sedan climbed to almost 17 percent in the large-car segment, a one-two punch that is meeting Chairman and Chief Executive Edward Whitacre Jr.'s mandate that GM boost sales and market share after bankruptcy.
The LaCrosse sedan is furthering a Buick resurgence that started with the 2008 Enclave crossover, which had its best-selling month in December 2009, two years after debuting. The strong sales convinced GM to add a third shift this month at the plant near Lansing where it is produced.
The average age of a Buick buyer has fallen from 72 several years ago to 65. That figure is trending lower ahead of the launch of the Buick Regal midsize sport sedan this spring.
"The perception is changing -- I don't want to say it's done yet because perception takes a period of time and consistency," said auto analyst Erich Merkle of Autoconomy.com in Grand Rapids. "I'm seeing consistency out of Buick, but it's going to take more time."
Not all is well with the brand. Sales of the third vehicle in Buick's lineup, the Lucerne, are down 15.6 percent this year.
From The Detroit News: http://detnews.com/article/20100412/AUTO01/4120334#ixzz0l2ldK2g7
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →