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          China could save a tarnished GM brand

          (MSNBC)
          Updated: 2006-12-21 09:42

          Yet both Buick and Pontiac have endured, even though their US sales have lagged in recent years as Japanese and Korean automakers have chalked up significant market share gains. In the face of such fierce competition, many have questioned whether these brands — and others like GM's Saturn brand and Ford's Mercury nameplate — can survive in the long term.

          GM is working to reverse the staid, old-fashioned aura that surrounds its Buick, Pontiac and GMC brands in the United States through an aggressive restructuring campaign, consolidating dealer networks and focusing on fewer models, making Pontiac its sporty car line, GMC a truck product and Buick a more upscale brand.

          The Enclave, which will hit dealerships in late spring or early summer, follows the new GMC Acadia crossover, which is now on sale. Both are based on a unibody platform, offering a smoother ride and better fuel economy than the body-on-frame construction of older SUVs.

          "We have very high expectations for these vehicles," said Tom Appel, editor of Consumer Guide Automotive, which offers buying advice. "These unibody designs weigh less than regular SUVs, have better handling and are more car-like."

          Appel also says that GM's stated aim to go after the market for luxury SUVs, like the Acura RDX or the Lexus RX 350, is feasible with the Enclave. Buick's previous small SUVs, like the Rainier and the Rendezvous, didn't do anything for the Buick brand, he said.

          "Sales of those products did OK to mediocre," Appel said. "But Buick's aim to go after cars like the Lexus RX 350 is more realistic now with the Enclave. If it's as good as the GMC Acadia crossover, they might have a serious product here. The Rainier and the Rendezvous were the sorts of vehicles that sold on price, but the Enclave could be a destination car — one that actually brings people into dealerships."

           


           12

          (For more biz stories, please visit Industry Updates)



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