GMC's Denali subbrand has been a huge success for General Motors. According to GM CEO Mary Barra, Denali-badged models now account for almost 30 percent of GMC retail sales, bringing in higher margins and average transaction prices. With Buick launching their Avenir subbrand, GM hopes for the same success.
"Avenir already seems to be capturing the imagination. It just seems to have something maybe in the same way Denali has something," said Duncan Aldred, GM's vice president for Buick and GMC to Automotive News.
But Buick knows they have to go slow and steady with the rollout of Avenir. One of the key reasons Denali has enjoyed immense success is that GMC allowed it to grow organically and slowly. Like GMC, Buick has only introduced one model with the Avenir trim, the 2018 Enclave. There are plans to roll out Avenir to other models, but Buick hasn't decided if it will do all of their models like GMC does with Denali.
"Whether we make the investment for what would be a somewhat limited volume, we'll see," said Aldred.
Buick is also making sure that it prices Avenir correctly so it doesn't push customers away. According to Automotive News, the base price of the Enclave Avenir ($54,410 with destination) is 33 percent higher than the base model. That may seem like a lot, but it pales in comparison to the 55 percent premium the Acadia Denali has over the base model.
"We certainly didn't want to price it too high. We weren't going to overprice this to begin with, for sure," said Aldred.
Source: Automotive News (Subscription Required)