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Looking back at how and why GM saved Buick

Still uncomfortably fresh in our collective minds is 2008, the year when the US economy tanked, auto sales collapsed, and both General Motors and Chrysler endured federally managed bankruptcies. Then 2009, when, among other draconian measures, the government task forces dictating what they were compelled to do to earn taxpayer financial support ordered thousands of dealers cut and GM to discontinue four of its eight US brands. Three of those chosen for GM's axe were fairly obvious: off-road icon Hummer had become politically incorrect, Swedish-born Saab was a perennial money loser, and product-starved Saturn had sadly sagged after its strong early start. On the other hand, high-volume value brand Chevrolet, luxury Cadillac, and high-profit GMC seemed clear keepers. That left Pontiac and Buick, both boasting strong brand heritage and histories but both languishing at the time with lackluster image and sales. Most believed that "old man's car" Buick would be killed and once-youthful Pontiac and its performance image would be revived. So few understood why when exactly the opposite happened: Buick lived, Pontiac died. One key factor was Buick's long, distinguished history in China. In the early 20th century, many of that country's most influential citizens owned, drove, or were driven in Buicks. By 1930, one out of every six cars on the roads in Shanghai was a Buick. So when GM launched vehicle production at a Shanghai joint-venture plant in 1999, the chosen brand was Buick. Today it remains GM's best-selling brand in that fast-growing market. Another was an appealing new design direction that began with a shapely 2006 three-row crossover concept called Enclave. Inspired by the Buick Velite concept convertible of 2004, its curvaceous "form vocabulary," GM Design vice president Ed Welburn said at the time, previewed coming Buick production car and CUV design. "The body shape flows, like there's wind blowing over it," he enthused, adding that the Enclave concept's richly trimmed cabin foretold "a renaissance in interior design for GM." And when the production Enclave arrived for 2008, followed by platform siblings from Saturn and GMC (and later Chevrolet), it indeed caught the public's eye and started selling well. And once past GM's painful and embarrassing bankruptcy, Buick has been on a major roll. Continuing to sell strongly in China while growing substantially in the US, it has enjoyed four straight years of global sales records.

Texas sues GM, saying it tricked customers into sharing driving data sold to insurers

Texas filed a lawsuit Tuesday against GM over years of alleged abuse of customers' data and trust. New car owners were presented with a "confusing and highly misleading" process that was implied to be for their safety, but "was no more than a deceptively designed sales flow" that surrendered their data for GM to sell. The suit contends that at no point was selling driving data ever even suggested as a possibility, putting GM in violation of the state's consumer protection laws. Texas Attorney General Ken Paxton is seeking a jury trial and at least $10,000 per offense (every GM car sold in the state since 2015) and a hefty add-on of $250,000 in cases where the victim was over 65. Texas seems to be flying high after a recent $1.4 billion settlement from Meta over other privacy concerns. This may well be a way to solve any pending budgetary issues in the Lone Star State.

Nearly half of Buick dealers choose buyout over investing to sell EVs

In 2022, General Motors gave Buick dealers across the nation a simple choice: invest a significant amount of money to prepare for EVs or opt for a buyout. Over a year later, the brand has reportedly lost nearly half of its dealerships as it prepares to roll out its first electric cars. Trade journal Automotive News reported that the number of Buick dealers in the United States dropped by about 47% during 2023. At the beginning of the year, the network included 1,958 stores; fast-forward to December and that figure stands at approximately 1,000. More dealers could throw in the towel in the coming weeks, as the publication adds that the buyout program remains open and will continue. Dollar figures haven't been released, so we don't know precisely how much money a dealer who opts out can claim from General Motors or how much money a dealer needs to spend to stick with the brand. However, the latter figure falls somewhere between $300,000 and $400,000, Automotive News learned. Dealers notably need to invest in equipment (such as charging stations) and training. Buick doesn't seem fazed by the exodus. "I'm really pleased with where we are. The network, where we are now, is a good size. It's with dealers who are focused on the business, who've shown that they can recover the volume that the dealers who transitioned away were doing," company boss Duncan Aldred said. According to Automotive News, the dealers who chose to stop selling Buick models accounted for about 20% of the brand's sales in the United States. Buick told the publication that around 89% of the American population still lives within 25 miles of one of its dealerships. General Motors extended the same offer to Cadillac dealerships in 2020, and about 150 stores allegedly chose to leave. For context, the dealer network consisted of 880 locations in the United States before executives floated the buyout offer. The dealers who left received between $300,000 to $500,000, the report adds, while preparing to sell electric cars would have set them back by around $200,000. Related video: