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Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

2019 Buick Envision First Drive Review | Still not a standout

ATLANTA – "We're in the fashion business," executive chief engineer Rick Spina told us as he introduced the 2019 Buick Envision. "Except with a lot of technology." Spina was referring to the changing whims of new-car buyers, which have prompted Buick to give the compact Envision crossover its mid-generational update early — just 18 months into its lifecycle — and drop its prices across all trim levels. As with much of our consumer goods, the Envision is made in China. That doesn't seem to have hurt it in the market, even though it wears the badge of one of the most quintessentially American brands out there. It even aced the IIHS crash tests, putting it in league with Volvo, Mercedes-Benz and Lexus. There's good news and bad news about how the Envision is doing. It's now the third-best-selling model in the Buick portfolio, behind the three-row Enclave in second place and the surprise hit Encore subcompact crossover in first. Sam Russell, Buick's director of marketing, reported 73 percent growth in the past nine months versus the first half of its market life. A full 60 percent of Envision buyers are new to the GM family, too, and Russell says that nearly half of those are likely to buy another Buick SUV when the time comes to trade in the Envision. And yet, the Envision trails in luxury compact-crossover sales, behind mainstays such as the Audi Q5 and Acura RDX, even amid crossover demand in the U.S. that has companies like Nissan posting record sales numbers and Ford canceling a redesign of the Fusion. Our test of the 2017 Envision found it competent, but lacking that "X factor" that would send buyers of German and Japanese marques flocking. Instead, we compared it to the Jeep Grand Cherokee and Hyundai Santa Fe Sport, and deemed those both better values. Perhaps Buick feels the same, because the base 2019 Envision now starts at $32,990, a $2,000 cut from last year. The Preferred trim level sees a greater drop of $2,400, to $34,495. Rounding out the naturally aspirated 2.5-liter grades, the Essence's price falls $1,900 to $36,795. The turbocharged 2.0-liter Premium and Premium II trims get a discount of $1,600 and $1,400, respectively. With those prices come changes that Buick hopes will make the Envision a more compelling prospect. Outwardly, the Envision sports a new grille, a winged affair to replace the 2018's waterfall and bring it in line with the rest of Buick's lineup.

Buick Encore production increased to lift supply by 50%

Trying to zero in on the Buick Encore leads us to the conclusion that the only place it really fits is in buyers' driveways. Every member of its so-called competitive set – we've read everything from the Ford C-Max to the Nissan Juke to the Volkswagen Tiguan to the BMW X1 – is so different in small yet fundamental ways that the Encore neatly slinks between them all, and with 48,892 sales in 2014, it doesn't stop slinking until it reaches consumer garages. That success, and preparation for the aggrandizing of the compact CUV segment, is why General Motors is upping production for the US market by 50 percent. Analysts keep predicting there will be more shoppers for tiny crossovers, and that's why those that don't have them are getting them. Yet the Encore came out in 2013 before people realized the power of the segment, and it has substantially out-performed GM and observer expectations: analysts predicted 18,500 US sales in 2013 and 25,000 in 2015; in 2013 we wrote, "We admit it. We have no earthly idea how this whole thing is going to shake out." It shook out 31,046 sales in 2013, puffing that number up by more than 50 percent last year. GM thinks that this year it will it will go from Buick's third-best-selling vehicle to its best-selling vehicle. GM wants that to continue, what with the Honda HR-V, Jeep Renegade, and Mazda CX-3 on the way. Dealers say they'd sell more if they could get them, and the four-month lead time at the moment between a dealer ordering and taking delivery – about double the normal time – creates a handicap. Plants in Mexico, Korea, and Spain will hive off production to bolster US inventory to keep the "downsizing empty nesters" who love it, happy. Seeing as the coming competition is falls meaningfully outside the Buick's combination of traits, there's a chance its popular tale can continue.