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03-21-2007, 01:24 PM
Buick sees 'roughly flat' North American sales in 2007
http://www.reuters.com/article/tnBasicIndustries-SP/idUSN2037909620070320
http://us.tnpv.net/2006/WKA200611/WKA2006112882195_pv.jpg
DETROIT, March 20 (Reuters) - The Buick unit of General Motors Corp. (GM.N: Quote, Profile, Research) 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 told reporters on Tuesday.
Steve Shannon, Buick's general manager, said 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 said.
Buick's U.S. sales fell almost 15 percent to 240,657 units in 2006, hurt by a reduction in low-profit sales to rental car companies and the elimination of aging models such as the LeSabre sedan. Sales in China, however, surged 25 percent to 304,000 units.
Shannon said GM will 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.
GM has invested heavily to revitalize 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.
GM has previously said the Enclave, which will replace the Rendezvous, will steal buyers from other automakers, estimating that 40 percent of Enclave customers will come from other companies.
Shannon also said GM would reduce the number of models offered under the Buick name to keep the brand profitable.
Shannon said the average age of Buick car buyers is about 67, while the average Buick SUV driver is about 53.
"With our new products, the average age will fall about three to four years over time," Shannon said. "That is a significant amount."
Buick has used golf celebrity Tiger Woods to reach out to younger drivers. Shannon said Woods, who lent his presence at the unveiling of the Enclave last year, will figure more prominently in their marketing.
http://www.reuters.com/article/tnBasicIndustries-SP/idUSN2037909620070320
http://us.tnpv.net/2006/WKA200611/WKA2006112882195_pv.jpg
DETROIT, March 20 (Reuters) - The Buick unit of General Motors Corp. (GM.N: Quote, Profile, Research) 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 told reporters on Tuesday.
Steve Shannon, Buick's general manager, said 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 said.
Buick's U.S. sales fell almost 15 percent to 240,657 units in 2006, hurt by a reduction in low-profit sales to rental car companies and the elimination of aging models such as the LeSabre sedan. Sales in China, however, surged 25 percent to 304,000 units.
Shannon said GM will 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.
GM has invested heavily to revitalize 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.
GM has previously said the Enclave, which will replace the Rendezvous, will steal buyers from other automakers, estimating that 40 percent of Enclave customers will come from other companies.
Shannon also said GM would reduce the number of models offered under the Buick name to keep the brand profitable.
Shannon said the average age of Buick car buyers is about 67, while the average Buick SUV driver is about 53.
"With our new products, the average age will fall about three to four years over time," Shannon said. "That is a significant amount."
Buick has used golf celebrity Tiger Woods to reach out to younger drivers. Shannon said Woods, who lent his presence at the unveiling of the Enclave last year, will figure more prominently in their marketing.