Buick News: Buick Offering A 24 Month Lease To Up Sales

[William Maley 948]

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William Maley

Editor/Reporter - CheersandGears.com

March 15, 2012

Despite having one of the freshest lineups in the industry, Buick has seen its sales slip. Since last fall, the brand hasn't posted a year-over-year increase. The news is even worse when in February, Buick posted a 17% drop in sales to 24,231 vehicles.

To help get the brand out the slump, Buick has announced a new 24-Month lease offer called Experience Buick. Experience Buick includes scheduled maintenance, Sirius XM satellite radio and OnStar as part of the 24 month lease for all Buick cars. Usually, OnStar and Sirius XM are included for three to six months, while maintenance is left up to the owner. The maintenance covers 24,000 miles of basic maintenance that includes oil changes and tire rotations but not wear and tear items.

Press Release is on Page 2

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ExperienceBuickGivesCustomersAll-InclusiveLuxury

New24-monthleasesdeliverconvenience,peaceofmindandentertainment

DETROIT – Buick is announcing a new initiative that supports the brand’s mission to redefine itself as a modern luxury automaker and leader in customer satisfaction. Experience Buick offers the security and convenience of a 24-month lease that includes routine maintenance, an OnStarDirectionsandConnections plan and SiriusXM radio, all bundled into one simple monthly payment.

Buick sales have increased two years in a row with four all-new or significantly revised products introduced during the same period. At the same time, many Buick dealerships across the country are in the processofmakeovers. Experience Buick is available on all models – the EnclaveluxurycrossoverSUV and the LaCrosse, Regal and Veranoluxurysedans.

“New drivers continue to find the Buick brand,” said Brian Sweeney, U.S. vice president of Buick and GMC Sales and Service. “The vehicle lineup has never been stronger, and our dealer network continues to modernize its facilities. The Experience Buick program represents the next step in the brand’s reinvention by providing buyers two full years of all-inclusive, worry-free driving.”

Also included in every Experience Buick lease is a bumper-to-bumper warranty for the duration of the lease and beyond – four years or 50,000 miles (whichever comes first). Routine maintenance includes services like oil changes and tire rotations.

Experience Buick should help build lasting relationships between customers and dealerships, according to DMEautomotive, a marketing solutions and research provider in Daytona Beach, Fla.

“Programs like this are a strong strategy for raising customer retention rates,” said Doug Van Sach, DMEautomotive vice president of Strategy & Analytics and author of “The Changing Service Loyalty Landscape” white paper. “By removing cost from the decision about where to service a vehicle, Buick is creating the opportunity for dealers to establish a service relationship with their customers based on expertise and workmanship rather than on discounts and promotions.”

“Because the leases are all-inclusive, younger buyers, who are more price sensitive, will be inclined to return to a dealership for their service needs,” Van Sach said.

The Experience Buick lease is offered through Ally Financial.

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[walter36 14]

this is why they would have been better off keeping Pontiac or Saturn instead.

[walter36 14]

I guarantee they would have sold more than 24,000 pontiac's or saturn's. when they made Grand am's they used to be in the top 15 in sales almost every month. when was the last time a Buick was in the top 15 in sales??

[dfelt 4,877 5 Vehicles]

Interesting, while Buick might be huge in China, I think Pontiac would have been the EXCITEMENT brand that they could have focused on the College to early 30's crowd and still also could have had a stepping stone mid luxury product to go from Chevy to Cadillac via Pontiac.

Will be interesting to see how GM handles this, they could have also killed Buick and just gone with Chevy, GMC and Cadillac and had performance with mid level luxury under the GMC label.

Edited March 15, 2012 by dfelt

[pow 106]

I wish them luck. Buicks have horrible residuals, so GM typically has to dole out huge cash incentives to make their leases competitive. Not really a formula for making money.

Residuals:

2012 Buick Regal: 43%

2012 Acura TSX: 57%

2012 Lexus IS250: 59%

2012 Buick LaCrosse: 43%

2012 Acura TL: 56%

2012 Lexus ES350: 56%

All residuals assume 36-mo lease, 15K mi/yr.

[vonVeezelsnider 53]

If the maintenance plan is 4/50k does than mean they're extending that to purchases as well- I'm not sure.

[regfootball 1,011]

Regal is a sweet car, Buick is marketing well, I just think no one really knows Buick's changes.....Regal packaging is tough too and the Verano mucks it up even more. I think if the base Regal gets the 2.5 it will help and really Buick needs to bring down the pricing on the Regal overall.....

Regal is a bit austere too for a lot of AMURCHANS who now love sheet like the creepy Camrys and such

Buick needs to be small enough so that if it fails CHevy is large enough to be the unfaltering torch bearer for GM.

[daves87rs 1,066]

I get the feeling Buick is going to struggle regardless....there needs to be a shake up somewhere...

[crash900s 9]

Well the other problem is that Buick and Cadillac compete against each other here in America at least in mind share. Sure Buick is somewhat cheaper than Cadillac but it is still priced above mainstream competitors and a bit redundant here in the states.

[FAPTurbo 1,308]

I guarantee they would have sold more than 24,000 pontiac's or saturn's. when they made Grand am's they used to be in the top 15 in sales almost every month.

Adding nothing to GM's bottom line in the process.

[Z-06 493]

I guarantee they would have sold more than 24,000 pontiac's or saturn's. when they made Grand am's they used to be in the top 15 in sales almost every month.

Adding nothing to GM's bottom line in the process.

VW group can sell enough vehicles with seven different brands and make profit at better margin in its home W. European market, which is similar size to United States market, much to GM's envy.

It was not number of brands but mismanagement of brands.

[frogger 550]

I thought Buick staying around over Pontiac was obvious due to their success in China which has passed the US in automotive sales. Neither had good vehicle lineups in the US for quite some time at the time of Pontiac's demise.

Edited March 17, 2012 by frogger

[daves87rs 1,066]

I guarantee they would have sold more than 24,000 pontiac's or saturn's. when they made Grand am's they used to be in the top 15 in sales almost every month.

Adding nothing to GM's bottom line in the process.

VW group can sell enough vehicles with seven different brands and make profit at better margin in its home W. European market, which is similar size to United States market, much to GM's envy.

It was not number of brands but mismanagement of brands.

Quoted for truth. GM needs to get off their asses...

[Intrepidation 913]

I guarantee they would have sold more than 24,000 pontiac's or saturn's. when they made Grand am's they used to be in the top 15 in sales almost every month.

Adding nothing to GM's bottom line in the process.

VW group can sell enough vehicles with seven different brands and make profit at better margin in its home W. European market, which is similar size to United States market, much to GM's envy.

It was not number of brands but mismanagement of brands.

Meanwhile at Toyota whose market share consists mostly of two brands...

Did I mention their market share is larger than VW's?

Also how many times are going to go down this road in unrelated threads? f@#k's sake.

[FAPTurbo 1,308]

Swag.

[Z-06 493]

I guarantee they would have sold more than 24,000 pontiac's or saturn's. when they made Grand am's they used to be in the top 15 in sales almost every month.

Adding nothing to GM's bottom line in the process.

VW group can sell enough vehicles with seven different brands and make profit at better margin in its home W. European market, which is similar size to United States market, much to GM's envy.

It was not number of brands but mismanagement of brands.

Meanwhile at Toyota whose market share consists mostly of two brands...

Did I mention their market share is larger than VW's?

Also how many times are going to go down this road in unrelated threads? f@#k's sake.

Read first before throwing a hissy fit. I never mentioned market share. Prove me wrong on the counts of VW brands, vehicles sold in EU in 2011, and VW profits.

Again in Japan, which is Toyota's home country Toyota operates under 4 brands.

In USA, there is Scion, Toyota, Lexus that is one plus one plus one which is three, may be my elementary math is incorrect. Toyota sales are measly 560,000 of ~14 million in Europe. Yeah it consists of mostly two brands.......

Pointing to the incorrect statement is not going down the same road for your f@#k's sake.

[riviera74 1,121]

Two points: Buick and Cadillac are NOT the same since they do not sell similar vehicles (e.g. Buick has no RWD; Caddy has no Enclave while Buick has no SRX).

Second, what's up with those residuals? What is this, 2005? I still remember when Buick had at least ten models and deep discounting. Now they have four models. How does the Regal and LaCrosse have such poor residuals after only 36 months and/or 45,000 miles off a lease? That leads me to another question: are Buicks overpriced/overproduced or is the competition perceived to be that much better?

[Drew Dowdell 11,149 2 Vehicles]

I guarantee they would have sold more than 24,000 pontiac's or saturn's. when they made Grand am's they used to be in the top 15 in sales almost every month. when was the last time a Buick was in the top 15 in sales??

Grand Ams could also be had at $13,995 with a/c pwl, pw and a large chunk of them ended up in rental fleets.

[Paolino 216 1 Vehicles]

Two points: Buick and Cadillac are NOT the same since they do not sell similar vehicles (e.g. Buick has no RWD; Caddy has no Enclave while Buick has no SRX).

Second, what's up with those residuals? What is this, 2005? I still remember when Buick had at least ten models and deep discounting. Now they have four models. How does the Regal and LaCrosse have such poor residuals after only 36 months and/or 45,000 miles off a lease? That leads me to another question: are Buicks overpriced/overproduced or is the competition perceived to be that much better?

I believe this is the big problem. Newer LaCrosses with V6s don't seem to be depreciating as quickly as their predecessors. 4-Cylinder models do however.

[regfootball 1,011]

Buick sort of needs to promote that they are still out there. The LaCrosse is the only name with any carryover since most folks wrote the Regal off long ago. Overall, I think people probably see the Buicks as overpriced...even if they really are not. Buick was ambitious to promote their moving 'downtown' but I think they may need to step back and re-educate some folks that they do exist in new form with new models.

Buick badly needs a halo model right now. I suggest a special edition LaCrosse and a Verano coupe. Also, I think the Encore may do some positive things.

[pow 106]

Buick sort of needs to promote that they are still out there. The LaCrosse is the only name with any carryover since most folks wrote the Regal off long ago. Overall, I think people probably see the Buicks as overpriced...even if they really are not. Buick was ambitious to promote their moving 'downtown' but I think they may need to step back and re-educate some folks that they do exist in new form with new models.

Buick badly needs a halo model right now. I suggest a special edition LaCrosse and a Verano coupe. Also, I think the Encore may do some positive things.

Regal GS is their current halo. Big flashy wheels and turbo. The problem is all that equipment makes its price on par with proper sports sedans -- competitors that outclass it in every way.

The base Regal should be more like a GS and the base LaCrosse should be more like the Touring model. Their base prices are fine; they just need more equipment and standard bling to make the value equation work. Buick ain't BMW, whose buyers are willing to spend $1,000 on front power seats.

[dfelt 4,877 5 Vehicles]

Buick has some pricing issues, but I do think they can be overcome and proper packages at reasonable pricing can be made.