Buick Hopes New Cars Spur Gains in Market Share

09/12/96

Reuters has reported that Buick executives said they expect two completely redesigned cars and a sharper brand image to put GM's upscale car division back on track by reversing the the market share slide that the division has recently experienced.

Buick General Manager Edward Mertz predicted that the division would reach its target of 6 percent of the U.S. passenger market by the end of the 1998 model year. Buick currently has about 5.3 percent of the car market.

"We won't have the volume there to begin with, but over the next two years we're pretty sure we can get there," Mertz told reporters following an introduction of 1997 models.

Buick's year-to-date sales are down 5 percent from last year, at 295,640 units. In 1995, Buick sales dropped 13.7 percent to 471,819.

Mertz said that Buick will introduce more new products in 1997 and 1998 than ever before. Included among the new launches will be an all-new version of its flagship Park Avenue. The car is expected to debut in October, the first time its been completely overhauled in 12 years. Since Buick discontinued the Roadmaster, the Park Avenue and its Ultra version became the largest Buicks available.

Prices for the new Park Avenue, which is larger than its predecessor and features a new body structure and chassis, start at $29,995. The base Ultra starts at $34,995.

An all-new version of Buick's mid-size Century will be introduced in the first quarter of 1997. GM has not released any details about the cost of the new Century, but Anthony Derhake, brand manager for the car, promised it would be on the "south side of $20,000."

"I promise you, the Century will have a very competitive manufactures suggested retail price," he continued.

It has been 15 years since GM last redesigned the Century. The new car is conservatively styled and is larger and better-handling than its predecessor, Buick said.

Derhake thinks the new Century has the potential to sell more units than the previous model. Buick will push for more retail sales and offer dealer discounts.

Buick is also overhauling the way it advertises its cars in an effort to distinguish the Buick line from Oldsmobiles. The division will use a combimnation of quicker-paced advertising and more targeted marketing, as it tries to harder to sell its cars to specific demographic groups.

Mertz said, "You won't see an Oldsmobile and a Buick being virtually the same car as you did 10 years ago."

Paul Dever -- The Auto Channel