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Buick brand could be GM's ace in the hole
Thursday, July 16, 2009

Buick, the brand around which General Motors was established 100 years ago, may be the unexpected "sleeper" that launches the company on the road to recovery.

With GM pursuing a more streamlined marketing approach offering Chevrolet as the "good" brand at the bottom of the price scale and Cadillac as the "best" brand -- and with Pontiac's departure -- Buick is left with a huge space in the middle as GM's "better" brand.

Buick has been struggling lately, despite the successful Enclave crossover. In 2008, Buick sold 137,197 vehicles for a 1.04 percent market share. That was a drop from 2007, when it sold 185,791 vehicles for a 1.15 percent market share.

Those figures are down dramatically from the days when Buick was the nation's fourth-bestselling brand. At its peak, the company sold 845,083 cars in 1983, 941,611 in 1984 and 845,579 in 1985.

"What happened over time is that as the Asians garnered greater and greater clout, and a two-brand structure to sell their cars -- a mass market product and an upscale product -- it squeezed out the midlevel brands," said Tom Libby, an independent auto analyst based in Detroit. "Buick, Chrysler, Mercury, Pontiac and Oldsmobile lost their place in the marketplace. There was no longer a compelling reason to buy these brands."

On Monday in Plymouth, Mich., Buick introduced the all-new 2010 LaCrosse, which is designed to give customers a reason to return to the brand.

The LaCrosse, once a dowdy-looking, nondescript, mass-market sedan, has been transformed into a glamorous, well-equipped, entry-level luxury sedan.

The car is the centerpiece of Buick's new "Look At Me Now" advertising campaign. Instead of being targeted against such traditional midsize cars as the Ford Fusion, Toyota Camry and Honda Accord, the LaCrosse will go head to head against brands such as Acura, Lincoln and Volvo.

"It's much more of a contemporary design and more progressive design, and it gets away from the sort of styling that the prior LaCrosse had -- styling that was similar to the styling of older GM vehicles that tended to attract a much older demographic," said Mr. Libby.

"I think the design will appeal to a younger demographic, but the challenge for Buick will be getting them into the showroom to see the design. The brand is really known for appealing to older customers, so they now must revive their brand image" without treading on the territory that Cadillac has staked out, he said.

Craig Bierley, product marketing director for cars and small crossovers at Buick GMC, said company officials realized that it would make no sense for Buick to try to compete with the top luxury cars.

"Those are purchased by individuals for whom the badge on a car is important. They see their cars as making a statement about them. Instead, we are going after the late boomers, those in their late 40s and early 50s. They are into unpretentious luxury, and getting value is very important to them."

In recent years, Buick has competed directly with Lexus, but the current Buick management thinks the brand stands a better chance trying to lure away Acura buyers.

Mr. Libby isn't so sure they're right on that one.

"Acura may seem more legitimate than Lexus and Mercedes, but for them to appeal to an Acura owner, that's a stretch," he said.

Volvo is equally tough because it has a strong safety image, other analysts say.

For its part, Buick has been known most recently for its high ranking in quality surveys and the almost eerie quiet in its cars.

"I think they're now floundering, looking for something to grab onto for Buick; and it's really fuzzy for them," Mr. Libby said.

Don Hammonds can be reached at dhammonds@post-gazette.com or 412-263-1538.
First published on July 16, 2009 at 12:00 am