2006 Buick Lucerne: Return of the V8

The venerable Buick Park Avenue is no more, having been replaced by the all new Buick Lucerne, a down market version of the Cadillac DTS. With a 275-hp Northstar V8 engine, the Lucerne becomes the first Buick car in nearly ten years to arrive equipped with a V8. The entire Buick line up is in the process of being overhauled, so let’s take a look at this make’s newest flagship and see how it plays a part in GM’s overall strategy. If you are a fan of the Buick brand you have witnessed your fair share of changes over the past five years. Gone are the Park Avenue, LeSabre, Century, and Regal, and in its place are the Rendezvous, the Rainier, LaCrosse, Terrazza, and the Lucerne. All the changes are the result of General Motors’ broad realignment strategy in the wake of retiring the Oldsmobile brand, lifting Saturn into the fold, and setting strategy to compete against the nonstop onslaught of foreign brands including Toyota, Lexus, Nissan, and Infiniti. One look at the Buick and you will notice a strong resemblance to the Cadillac DTS. The Buick’s oval grille sets it apart from the Cadillac’s firm nose, but a cursory examination of the body lines tells you that these cars are in fact twins. In the past, Buicks were essentially “stripped down” versions of Cadillacs, while Oldsmobile and Pontiac were more luxurious or sportier versions of Chevrolet models. Clearly, GM is repositioning Buick to have a more distinct “near luxury” look without stepping on Cadillac’s toes, while giving the Buick division a much needed replacement for the aging Park Avenue. For the car shopper, the Lucerne is value priced, arriving at in showrooms at just under 27K. With a standard 3.8 V6, the automaker can claim decent fuel mileage of 19 mpg city and 28 mpg highway. In these days of hyped up gas prices, favorable fuel economy is a keen marketing tool, but expect many buyers to opt for the ultra powerful Northstar V8 instead. Why? Because, if they want to purchase a Buick, they likely will want the power to go along with the luxury. It remains to be seen how well the V6 operates in a car that is 203 inches long and weighing in at nearly two tons. Standard equipment for the Lucerne includes the following: power windows, door locks, and mirrors; side curtain air bags for the front seat; theft deterrent system; OnStar; keyless entry; and more. The optional equipment list is expansive and can easily drive the starting price of the top of the line CSX to over 35K. For that price you receive heated power seats with lumbar support; a memory package that adjusts the seats, mirrors, radio, and climate control to each driver’s specifications; sport leather steering wheel with built in controls; and more. A fully loaded Lucerne is still several thousand dollars less than the DTS, making the Lucerne a value leader in the luxury car category. Still, Buick has its work cut out for it as competition from foreign brands including Acura, BMW, and Lexus continue to hammer away at GM’s “near luxury” division. Fortunately, quality levels for all Buicks remain very high so combining that level of success with a strong price may help the Lucerne compete admirably.

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8 GM Brands: 1 or 2 Too Many?

Lots of folks are speculating about GM’s future. If you take all the press reports at heart, you would think that General Motors is on life support. Quite frankly, the opposite is true especially when you look at the global picture. In 2005, “the General” sold more than 9 million cars worldwide, the first time the automaker reached that figure since 1978. Yes, U.S. auto sales are down and some are calling for GM to reduce its many brands, currently numbering 8. Who should GM let go? Or, should General Motors stick with the game plan and maintain all 8 brands? For the record, GM’s 8 brands are: Cadillac, Buick, Pontiac, Chevrolet, Saturn, GMC, Hummer, and Saab. You could take Saab out of that pack as the Swedish automaker (although fully owned by GM) builds few cars in North America. Still, GM includes Saab in its marketing schema so we’ll keep them in for argument’s sake. Clearly, Cadillac is GM’s luxury division; Chevrolet is it’s budget or “All American” division; while GMC is the truck division. Beyond that, there is much muddling of divisions, but Buick is a maker of “near luxury” vehicles (Cadillac lite) while Hummer is GM’s specialty truck division. The Saab line is a bit confusing as it once was a true European division. Now, the make is chiefly featuring rebadged GM and Subaru vehicles with little original models to show for it. Finally, Pontiac and Saturn duplicate much of what the other divisions do, although the Saturn mystique of “no haggle pricing” gives the make a certain aura to it. That leaves Pontiac. Pontiac, like the recently killed off Oldsmobile name, is probably one of the most vulnerable of the true “American” makes. Saturn will survive because its dealer network is tops and consumer satisfaction ranks up there with Lexus. Ultimately, the Saab name will likely die first. Outside of the U.S., particularly in Europe, Opel is a known name and an important GM make. Word has it that some of Saab’s production will shift to Germany and certain rebadged Opels will begin to sport the Saab name. Let’s just say once that happens, there is little reason to continue making Saabs. Let the Saab name die with dignity. Why spoil it by selling rebadged Opels as Saabs? Personally, I think GM should leave well enough alone with its remaining American brands. I wasn’t in favor of Oldsmobile’s demise and I am not in favor of killing off trusted brands. GM is retooling its operation as old models are killed off and as new or revived models step in. Look for the Chevy Camaro, Pontiac Firebird, Saturn Sky, and the Buick Enclave to help spark their respective divisions to renewed glory. Am I living a pipe dream? Maybe, but at least my imagination is going in a positive direction.

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6 Pocket Rockets!

Just because your car is small, doesn’t mean that it has to be slow. In fact, some of the fastest cars on the road today are subcompacts. How so? Because their owners have modified them to the point where they can squeeze out additional horsepower and acceleration. Let’s take a look at six cars that qualify as genuine “pocket rockets.” For the sake of argument, here are some ground rules for a pocket rocket:

The car must be a compact or smaller.

The engine must be normally aspirated; no turbo charged cars – four cylinders only.

New versions of the car must all retail for less than $20,000. The following six cars all qualify as pocket rockets when each of the above stipulations has been met: Dodge Neon; Ford Focus; Honda Civic; Scion tC; Subaru Impreza; and Volkswagen Golf. Unfortunately, the Mitsubishi Eclipse retails for just above $20,000 so it does not qualify. Besides, it looks too much like a sports car; we are only examining those vehicles that are somewhat plain before being transformed by aftermarket parts. Dodge Neon – Technically, the Neon is no longer in production as 2005 was its last model year. Still, with a 2.0L 132hp engine, the Neon remains an affordable favorite of the youth set who enjoy customizing their vehicles Ford Focus – A lemon no more! Earlier models of the Focus were problem plagued, but the car has made significant strides in the past few years and has received Consumer Report’s recommended buy label too. The stubby ZX3 produces 136 horses with its 2.0L engine Honda Civic – Redesigned for 2006, the Civic has been a fan favorite for over thirty years. Its teeny 1.8L engine pushes out an impressive 140 horses. The new Civic is a far cry from the “pregnant roller” skate look of the first Civics. Owners are grateful. Scion tC- Unlike its two boxy brethren, the tC is sleek looking and has a rocket demeanor. With a 2.3L under its hood, the tC has the second largest engine of any car in this class. You net 160 horses with the Scion. Subaru Impreza – The biggest car in this class has the most powerful engine, a 2.5L boxter engine producing 173 horses. Very competitive with larger and more powerful cars, but a favorite among “pocket rocket” fans nevertheless. VW Golf – A 2.0L 115hp drives the Golf, but the car’s light weight allows for it to buzz down the highway at a fairly good clip. Favorite ways of squeezing out additional power for pocket rocket owners include installing the following aftermarket parts:

Reusable air filters; top providers include: K&N and Green.

Cold air intake systems; favorites include: K&N, AEM, and Airaid.

Cat-back exhaust systems; leading manufacturers include: Magnaflow and Vibrant.

Performance chips; Hypertech and Jet Chips lead the way. Performance level increases are measured in horsepower, thrust, and acceleration. Depending on the parts installed and model selected, improvements can range from slight to significant. Regardless, all six models have the potential of becoming true pocket rockets and that is part of the thrill in owning one.

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Ford to Exit the Minivan Market?

All the car blogs lately have been speculating on the direction that the Ford Motor Company is going to take in the wake of declining sales and stiff competition. We know that Ford has too much capacity and we know that the company will be closing some key plants and laying off an as yet to be determined number of employees. What hadn’t been clear is which models would be cut from the line up. Now, it appears that Ford will exit the lucrative minivan market. That’s right, Ford apparently will stick with building cars, trucks, and SUVs, and leave the minivan market to the other players. Ever since the Chrysler Corporation invented the minivan market back in the early 1980s with its line of “K-car” derived minivans – the Dodge Caravan, Plymouth Voyager, and the Chrysler Town & Country – Ford has been playing catch up. Indeed, a series of forgettable “star” named minivans were served up by Ford and summarily rejected by consumers: the Aerostar, Windstar, and the Freestar. Later, both Honda and Toyota brought out their own entries and Ford, along with Chevrolet found themselves trailing badly in an overcrowded segment. Indeed, several GM divisions sell minivans, as does Kia and Nissan, making the market especially tight. Should Ford decide to go ahead with plans to ditch the minivan market, it wouldn’t be a complete retreat. For one, many consumers prefer the automaker’s popular Ford Explorer SUV while its all wheel drive Freestyle wagon/crossover competes well too. Finally, another vehicle – the Edge – will soon make its debut and likely pull many minivan customers over. The Edge will be yet another crossover vehicle – somewhat of a SUV/wagon hybrid – and fill the need for consumers. Yes, Ford appears ready to ditch the minivan market. No loss to consumers and probably a smart move for the beleaguered automaker.

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GM Death Watch: It Ain’t Gonna Happen!

I have been enjoying reading the news these past few days, perhaps in a perverse sort of way. Pundits and prognosticators are all forecasting the pending doom of the world’s largest automaker as if the approaching layoffs and restructuring are signaling the venerable automaker’s end. Certainly, GM has some problems – big ones – but the company isn’t likely to go away or even file for bankruptcy. The news isn’t all that it seems to be on this subject either…GM will survive and likely thrive in the decades ahead.

Okay, I am not crazy. Could GM go away? Of course, as could any poorly managed company. Yes, executives are overpaid and so are union workers. There…I said it. GM has been taking it on the chin from Asian automakers for three decades now and their U.S. market share continues to dwindle. Still, it isn’t doomsday for the general. Far from it. Here are some things that I believe GM is attempting to do to as they restructure.

Reduced Legacy Costs – GM won an important battle with its unions to force workers and retirees to pony up more money for their share of rising healthcare costs. Before you cry “foul” most Americans are paying heavily for their health insurance, while most autoworkers pay little or nothing. Reportedly, GM’s legacy costs add $1500 to the price of every vehicle. Hardly a way for any company to compete, right?

Divisional Trimming – GM axed Oldsmobile and is, supposedly, looking at whether Pontiac or Buick should go next. Saturn looks safe, primarily because of the division’s excellent dealer network while Chevrolet is the household name for so many car owners and is, therefore, untouchable. Cadillac is once again doing well and is competing effectively against Mercedes, BMW, Lexus, and Infiniti. Cadillac easily outsells rival Lincoln more than 2 to 1.

Captive Imports – I mentioned in a related article that China’s Chery Automotive Company will be importing a line of vehicles to the US commencing in Summer 2007. With a starting price as low as $6995, there is no way that GM can compete with them. Neither can Ford, Toyota, Honda, or Nissan for that matter. So, what is the option? Import one or two ultra low priced lines of cars from Korea via the company’s Daewoo division. Currently, the $9995 Chevy Aveo is the low price king in the US. This Daewoo built model is being overhauled and the new model should arrive in the US in about one year. Expect the price to drop as GM prepares for Chery’s onslaught. Expect GM to pressure their unions for further give backs as American highways are soon flooded with cheap Chinese imports.

Operational Spread -- The US auto market is the most lucrative in the world. Expect GM to strengthen luxury brands including Cadillac and Hummer as many of these vehicles bring in profits of ten thousand dollars or more per vehicle. Gas prices are coming down and America’s thirst for profitable trucks and SUVs has hardly been quenched. Still, look for GM to do a few hybrids, add some more diesels, and continue researching hydrogen production.

Union members should be alarmed by all these looming changes. Cutbacks will happen but they will only be wider and deeper if union opposition remains so strong. Yes, the unions could kill off the general, but that would be suicide for the workers. Better to pick whatever battles you can win and hope for the best.

The general isn’t dead and it hardly is dying despite everything you read and hear [personally, I believe GM is beating the “we’re getting clobbered” drum to squeeze out more give backs from the unions]. Globalism is changing the way business is done and it would do all of us good to wake up to that fact…like it or not.

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GM: Solutions For Effective Change

I, like so many people who have been following General Motors’ fortunes for some time, am wondering what the company’s long term plan of action is in the face of historic losses, plant closings, and unrelenting and widening competition. No, I am not talking about GM’s global operations, rather I am talking about the North American fortunes of the world’s largest automaker. Quite frankly, the North American market is currently unprofitable for the company while GM holds its own, even thrives, in many markets beyond our borders. The following are some suggestions to help “The General” not only get back on its feet again, but to halt the bleeding in North America.

File For Bankruptcy -- It is time to play hardball with recalcitrant unions and government authorities who don’t understand that GM is playing on an uneven field. Toyota, Honda, Nissan, and Hyundai all build cars in the U.S. None of them are saddled by huge legacy costs, i.e. health and pension benefits, local tax burdens, etc. Yes, GM negotiated their contracts in good faith, however the market has changed tremendously over the past several decades and is wholly unfavorable to the way GM has been doing business since then. In addition, GM often operates at a disadvantage in foreign markets as local laws limit their ability to effectively sell their vehicles.

Quit Building Small Cars -- All small cars built by GM should no longer be built in the U.S. This includes the Saturn ION and Chevrolet Cobalt. Instead, GM should rely on imports. By tapping its relationship with Daewoo of South Korea, GM can bring in enough cheaply made models to remain competitive and to give consumers affordable transportation under the Saturn, Chevrolet, and Pontiac nameplates. Use factories in Canada and the U.S. to build larger cars and trucks only. GM has been successfully selling the Chevy Aveo, a Daewoo model, and can easily sell other models at competitive prices. This practice would be especially wise as cheaply priced Chinese cars begin to hit the North American market in 2007.

Shore Up The Divisions Unlike some who think that GM has too many divisions, I disagree. Better to clarify your existing divisions than to go through the costly and negative closing of existing divisions. The Oldsmobile termination was a huge financial drain on the company and ended up fueling hostility against the company. Therefore, this is what I propose for GM:

1. Cadillac – GM’s luxury division is riding high and no changes need to be made. Keep producing distinguishable high quality luxury cars and Cadillac will continue to compete against the likes of Lexus, Mercedes, BMW, and Infiniti. Cadillac outsells Lincoln by more than 2 to 1 and the division performs well in all consumer quality and satisfaction surveys.

2. Buick – As the “near luxury” division for GM, Buick must create a viable alternative to Cadillac without sacrificing quality or confusing consumers. Bring back in a “halo” model like the Regal to show Buick’s youthful side.

3. Pontiac – Unless the Firebird returns, Pontiac’s performance image is gone for good. Pontiac needs this car and it must be different from the proposed Chevy Camaro. Besides Saab, Pontiac is the one division that needs the most work when it comes to reinventing itself.

4. Chevrolet – Keep up what you have, but rely on imports to fill the lower end of the market. Redo the Impala to help it compete successfully against the Chrysler 300, Toyota Camry, and Honda Accord. Yes, bring back the Camaro!

5. Saturn – Moving in the right direction, Saturn should chiefly sell cars that are Opel inspired. Give the car a more European flair and the division will succeed. The Sky is a knock out and the Opel inspired Aura is a vast improvement over the old “L” Series model. Keep the strong dealer network in place and Saturn will compete successfully against Hyundai, Honda, Toyota, Nissan, and others.

6. Saab – GM’s Swedish division is floundering and may be cut. Better yet, let the division sell upscale versions of Opel models and please do not throw out the Swedish touch: safety and durability. Unfortunately, GM hasn’t been as kind to its Swedish company as Ford has been to its Volvo subsidiary.

7. GMC – Between Chevy and GMC, no manufacturer sells more passengers trucks then this division. Likely, nothing will change, but coming out with a more capable small pick up truck would go along way in helping GMC and Chevy. Also, redo the Equinox to be a real battler against the Ford Escape and Toyota RAV4.

8. Hummer – GM’s niche division is the Hummer and little needs to be changed other than to add an H4, a compact Hummer. With the H4, give the division something to go with that can battle the Jeep Wrangler. Hummer will always be perceived as the company’s gas guzzling company, but it is also profitable for the corporation.

Personally, I do not want the bankruptcy route to be exercised as I know that so many suppliers would be left out in the cold, jobs lost, and goodwill would take a hit for at least the short term. Still, aggressive action – even beyond plant closings and layoffs – must be considered otherwise GM will be relegated to operating as a second rate player in North America while pursuing its fortunes abroad. In my opinion, neglecting the profitable North American market would be a shame and very costly.

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Buick’s Fabulous Five

The Buick Motor Division of the General Motors Corporation is in transition, much like the rest of the venerable auto company. Old models have been canceled, new models added, and the current line up is radically different from just three years earlier. Now down to five models, the remaining vehicles in the Buick line up are all winners. Let’s take a look at each model and what they have to offer to you, the consumer.

Lucerne – Buick’s Roadmaster and LeSabre are both gone, but the full size Lucerne have taken their place. Featuring V8 power and luxurious appointments such as heated and cooled seats, liquid heated windshield fluid, and leather appointments, the big Lucerne is based on the Cadillac DTS, but the car sells for more than $10,000 less than its up market Caddy cousin.

Lacrosse – This five seat sedan is sleek, aerodynamic, and quiet. With starting prices in the low 20 thousand dollar range, the car competes against the Toyota Camry and Honda Accord.

Rainier – The larger of two Buick SUVs, the Rainier comes standard with a 275hp I6, Stabitrak suspension/steering system, eight way driver powered seats, leather seating, and more.

Rendezvous – As Buick’s first SUV, the Rendezvous has succeeded where its Pontiac cousin, the Aztek, failed. Available in two or four wheel drive, the Rendezvous features seating for five [with available seating for seven], four wheel disc brakes, and a host of sought after outdoorsmen desired accessories.

Terraza – Is it a minivan or is it an SUV? The Terraza is part of a family of GM crossover vehicles introduced in the 2005 model year. This seven passenger vehicle comes equipped with a 3.5L I6 engine and is available in either front wheel drive or all wheel drive. As GM considers getting rid of its aging and unpopular line of minivans, the Terraza and its cousins will likely step in and fill the hole.

General Motors has been fairly silent regarding the future of the Buick division. Some have been concerned by the steady depletion of models while others are seeing Buick make a clean break from its past which has included several uninspiring models such as the Century and the Roadmaster.

In spite of everything, the Buick Enclave, featured at the recently ended Detroit Auto Show received rave reviews. The Enclave is yet another crossover vehicle and it should hit Buick showrooms by 2008.

Clearly, Buick could use a wider variety of vehicles to ensure its long term success. Perhaps the type of success the division had when the Regal was part of the fold would reinstate the division to its past glory, if a car matching the Regal’s caliber was developed.

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