General Motors’ Buick unit expects sales to be “roughly flat” in its home market of North America in 2007 after a sharp decline last year, the brand’s general manager has been quoted as saying.
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Steve Shannon, Buick’s general manager, told Reuters sales for this year would be constrained by a change in its line-up as it discontinues older models and prepares for the launch of the new Enclave crossover utility vehicle.
“We will be phasing out the Rendezvous and the Rainier, and we’ll start production on the Enclave, so it will be a transitional year,” Shannon reportedly said.
According to the news agency, Buick’s US sales fell almost 15% to 240,657 units in 2006, hurt by a reduction in low-profit sales to rental car companies and the elimination of ageing models such as the LeSabre sedan. Sales in China, however, surged 25% to 304,000 units.
Shannon told Reuters GM would collaborate significantly with its Chinese Buick operations on product development in the next two to three years as the automaker tries to achieve economies of scale through sharing design and engineering facilities.
“We will be doing a lot more sharing,” Shannon said. “Right now, our products are very different. We will do more sharing on engineering and design and make it more of a global effort and have similar products here and there.
“We think we can develop great products jointly that can do well in both markets,” he added, according to the news agency.
Reuters noted that GM has invested heavily to revitalise Buick as a luxury brand in the United States as it builds on the sales momentum the nameplate has established in the Chinese market in recent years.
Shannon also said GM would reduce the number of models offered under the Buick name to keep the brand profitable, the report said.
Shannon told the news agency the average age of Buick car buyers is about 67, while the average Buick SUV driver is about 53, but added: “With our new products, the average age will fall about three to four years over time. That is a significant amount.”
Reuters noted that Buick has used golf celebrity Tiger Woods to reach out to younger drivers and reported that Shannon said Woods, who lent his presence at the unveiling of the Enclave last year, would figure more prominently in their marketing.
