|
Mumbai: General Motors Corporation may halve the number of its smaller Buick models it offers in the US in a bid to reestablish as a luxury brand in its home market, GM's chief executive Rick Wagner said. Speaking to reporters at the unveiling of the 2008 Buick Enclave, Wagoner said the automaker would also reduce Buick sales to rental car companies as it shifts toward targeting more profitable retail sales with upcoming new designs. While the Buick has offered as many as seven models in recent years, Wagoner said GM was prepared for lower unit sales with about just four models and try to capture high-margin showroom sales. "In the end we're going to let it flow. But what we're going to do is to make sure we make three and then four really good (Buick models)," Wagoner told reporters. He said while GM has been successful in pushing the Buick in China, it hopes to consolidate into stores that offer its GMC trucks along with Buick and Pontiac models in the US market, where it is struggling to attract younger generation of buyers. "We've had a terrific run in China with Buick," he said. "Buick sells to the upper crust in China. That's going to open up some opportunities over time for product sharing that we wouldn't have had or even thought of five years ago," he said, adding, "We don't have to play hard in daily rental with Buick because frankly we've got other brands to play that role. We want to run a lot of volume through Chevrolet. It is the brand that should play broadly and if we need to push for some volume that's the place to push for it. Buick, we can focus." GM has unveiled the Buick Enclave, at the Los Angeles Auto Show. The five-door luxury vehicle is expected to compete against the Acura MDX from Honda Motor as well as the Lexus RX 350 from Toyota Motor Corporation. GM expects up to 40 per cent of the buyers for the Enclave to come from those now driving rival brands. Production of the Enclave is expected to begin in mid-April, with dealer inventory available by early June.
|