Bye bye Verano?
#1
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Sorry MMarshall
From Automotive News:
http://www.autonews.com/article/2016...-buicks-verano
From Automotive News:
DETROIT -- Buick plans to phase out its Verano compact sedan in the U.S., a sign that the market shift toward crossovers has automakers rethinking the makeup of their vehicle portfolios.
General Motors rolled out a clean-sheet redesign of the Verano for China last year, but doesn't plan to introduce a U.S. version as had been widely expected, according to a company source and another person familiar with the plans. The current U.S. Verano likely will run through a 2017 model year, the sources said.
The move reflects a new reality for Buick: With the success of its crossover lineup, its three sedans -- the Verano, midsize Regal and large LaCrosse -- are pulling a disproportionately light share of the load.
Buick expects as much as 70 percent of its U.S. vehicle sales to come from crossovers soon after the Envision compact goes on sale next month.
Deleting the Verano is a bet by Buick that it no longer needs a compact sedan as a gateway into the brand, a role that small cars have long played for mainstream and premium brands alike. At Buick, that mantle has been assumed by the Encore, a subcompact crossover launched in early 2013 that has fast become its highest-volume name-plate and No. 1 conquest vehicle. About half of Encore buyers are non-GM customers.
Still, Buick's challenge will be to steer Verano buyers to the Encore or other options in the showroom.
"There were nearly 32,000 buyers who walked into a dealership last year and bought a Verano, not an SUV or a Regal," IHS Automotive analyst Stephanie Brinley said. "Any time you eliminate a product from the lineup, there's risk."
A GM spokesman declined to comment on future product plans.
"We haven't announced plans for a next-generation Verano and are focused on selling the one that we have," he said. The car is built at GM's Orion Assembly plant near Detroit.
The decision seems to align with the philosophy of global Buick chief Duncan Aldred, who took over the brand in 2014. Aldred has said he guards against spreading resources across too many light-selling nameplates. For example, he has hinted at U.S. sales expectations for the Envision of around 50,000 annually, which would far eclipse the Verano's 31,886 tally from last year.
"What we can't have at Buick is 10 vehicles all selling a few thousand units each. I've seen that. It doesn't work," he said in a 2014 interview. "We need to bring in cars, trucks, whatever, that can offer substantial volume ... and that are important for the dealers who will then buy them, stock them and spend marketing dollars on them."
The Verano isn't that kind of car, said Chicago-area Buick dealer Mike Ettleson.
"It's a nice car," Ettleson said. "But when gas prices are what they are, nobody is looking at them."
When the Verano debuted in late 2011, it was aimed at market "white space" as a premium small sedan that starts in the mid-$20,000s. That positioned it between a slew of less expensive mainstream compacts -- think Ford Focus or Honda Civic -- and luxury offerings priced north of $30,000, such as the Lexus IS 250.
At the time it offered some goodies that most mainstream cars didn't, such as a heated steering wheel. But recent redesigns of the Civic, Chevy Cruze and others have equaled or surpassed the Verano on features and refinement, Brinley says. And today, a buyer with a budget in the mid-$20,000s has many more crossover choices, too.
At Martin NeSmith's Buick-GMC showroom in Claxton, Ga., customers would rather pay less for a similarly sized Cruze, for example, or spend about the same amount for a crossover than spring for a Verano.
"The Verano might be just a little too upscale for a vehicle of that size," NeSmith says. "For not much more money, customers can get an SUV."
General Motors rolled out a clean-sheet redesign of the Verano for China last year, but doesn't plan to introduce a U.S. version as had been widely expected, according to a company source and another person familiar with the plans. The current U.S. Verano likely will run through a 2017 model year, the sources said.
The move reflects a new reality for Buick: With the success of its crossover lineup, its three sedans -- the Verano, midsize Regal and large LaCrosse -- are pulling a disproportionately light share of the load.
Buick expects as much as 70 percent of its U.S. vehicle sales to come from crossovers soon after the Envision compact goes on sale next month.
Deleting the Verano is a bet by Buick that it no longer needs a compact sedan as a gateway into the brand, a role that small cars have long played for mainstream and premium brands alike. At Buick, that mantle has been assumed by the Encore, a subcompact crossover launched in early 2013 that has fast become its highest-volume name-plate and No. 1 conquest vehicle. About half of Encore buyers are non-GM customers.
Still, Buick's challenge will be to steer Verano buyers to the Encore or other options in the showroom.
"There were nearly 32,000 buyers who walked into a dealership last year and bought a Verano, not an SUV or a Regal," IHS Automotive analyst Stephanie Brinley said. "Any time you eliminate a product from the lineup, there's risk."
A GM spokesman declined to comment on future product plans.
"We haven't announced plans for a next-generation Verano and are focused on selling the one that we have," he said. The car is built at GM's Orion Assembly plant near Detroit.
The decision seems to align with the philosophy of global Buick chief Duncan Aldred, who took over the brand in 2014. Aldred has said he guards against spreading resources across too many light-selling nameplates. For example, he has hinted at U.S. sales expectations for the Envision of around 50,000 annually, which would far eclipse the Verano's 31,886 tally from last year.
"What we can't have at Buick is 10 vehicles all selling a few thousand units each. I've seen that. It doesn't work," he said in a 2014 interview. "We need to bring in cars, trucks, whatever, that can offer substantial volume ... and that are important for the dealers who will then buy them, stock them and spend marketing dollars on them."
The Verano isn't that kind of car, said Chicago-area Buick dealer Mike Ettleson.
"It's a nice car," Ettleson said. "But when gas prices are what they are, nobody is looking at them."
When the Verano debuted in late 2011, it was aimed at market "white space" as a premium small sedan that starts in the mid-$20,000s. That positioned it between a slew of less expensive mainstream compacts -- think Ford Focus or Honda Civic -- and luxury offerings priced north of $30,000, such as the Lexus IS 250.
At the time it offered some goodies that most mainstream cars didn't, such as a heated steering wheel. But recent redesigns of the Civic, Chevy Cruze and others have equaled or surpassed the Verano on features and refinement, Brinley says. And today, a buyer with a budget in the mid-$20,000s has many more crossover choices, too.
At Martin NeSmith's Buick-GMC showroom in Claxton, Ga., customers would rather pay less for a similarly sized Cruze, for example, or spend about the same amount for a crossover than spring for a Verano.
"The Verano might be just a little too upscale for a vehicle of that size," NeSmith says. "For not much more money, customers can get an SUV."
#2
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I'm sure the plan is to put those Verano buyers into a Regal for about the same $$$$. Speaking of the Regal, they should have a new model out soon, I think the current one dates back to 2012 or so.
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Originally Posted by pbm317
Sorry MMarshall
"There were nearly 32,000 buyers who walked into a dealership last year and bought a Verano, not an SUV or a Regal," IHS Automotive analyst Stephanie Brinley said. "Any time you eliminate a product from the lineup, there's risk."
"It's a nice car," Ettleson said. "But when gas prices are what they are, nobody is looking at them."
Last edited by mmarshall; 05-09-16 at 02:48 PM.
#4
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According to the sales thread, Verano sales thru April were 10.6k units/-12% and for calendar 2015, 31.9k units/-27%.
The Regal was 6.8k units/+14% and 19.5k units/-14%.
GM has pulled the plug on several models just about the time they get them sorted out. A couple of Oldsmobile models were effected before the division went away.
The Regal was 6.8k units/+14% and 19.5k units/-14%.
GM has pulled the plug on several models just about the time they get them sorted out. A couple of Oldsmobile models were effected before the division went away.
#5
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I'm curious as to why the Verano even existed. Which clowns in Detroit and Warren really thought there was a business case for it? Introducing a rebadged Cruze into the Buick lineup had no chance in h3ll of attracting younger buyers to the brand.
Now the bean counters at GM have introduced their ugly little Cascada convertible which is just a rebadge of a dated Opel. I guarantee that the Cascada will be a flop. There is already no market for cheap convertibles not named Miata, Mustang, or Camaro; add a Buick badge to it and it being a dated design already and it's a recipe for disaster. The Regal is another dated badge engineered Opel which isn't selling. GM thought an "GS" sports trim would lure people to the brand which it did not, I doubt 9/10 people have even heard of it.
I'm genuinely curious as to why Buick even exists, there is absolutely no market for it. Buick used to be a stop-gap between the main steam and luxury market, but now that is pointless given how Mercedes, Audi, Lexus, and Acura all have small cheap sedans and crossovers starting in the low-$30K range. People would rather drive a base model A3 than a mildly-equipped Verano. GM just doesn't get it.
GM are and always will be incompetent crooks.
Now the bean counters at GM have introduced their ugly little Cascada convertible which is just a rebadge of a dated Opel. I guarantee that the Cascada will be a flop. There is already no market for cheap convertibles not named Miata, Mustang, or Camaro; add a Buick badge to it and it being a dated design already and it's a recipe for disaster. The Regal is another dated badge engineered Opel which isn't selling. GM thought an "GS" sports trim would lure people to the brand which it did not, I doubt 9/10 people have even heard of it.
I'm genuinely curious as to why Buick even exists, there is absolutely no market for it. Buick used to be a stop-gap between the main steam and luxury market, but now that is pointless given how Mercedes, Audi, Lexus, and Acura all have small cheap sedans and crossovers starting in the low-$30K range. People would rather drive a base model A3 than a mildly-equipped Verano. GM just doesn't get it.
GM are and always will be incompetent crooks.
Last edited by BrownPride; 05-09-16 at 02:55 PM.
#6
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I too have questioned why Buick exists. Consumers today are very wiling to accept a higher priced mainstream car as "premium", and Buck is kind of in the same spot Mercury was in, trying to bridge that gap between a Chevy and a Cadillac.
I think part of GM's issue is that Chevy is too blue collar a brand to appeal to a better heeled, "yuppier" type buyer. Toyota for instance, Honda, Hyundai, Chrysler, even Ford don't really have that issue. Chevy however has that blue collar type vibe that just feels out of place in front of a 5 star restaurant, at the valet stand of a nice hotel, etc.
I think thats why GM has kept Buick around, and also why they have kept GMC around on the truck side. As that perhaps starts to turn around some (if it does) I think you will see them scale Buick and GMC back.
To use myself as an example...I would never drive a Chevy. But I could see myself driving a Buick...and a Toyota, and a Honda, and a Hyundai, and a Ford and even a Chrysler, but not a Chevy. Nothing against Chevy their persona just doesn't jibe with me.
To the Verano, my guess is that a large proportion of those sales are to fleets. I see a lot of Veranos in rental fleets. Even though 32k is not an insubstantial amount of sales, my guess is most of that is low profit fleet contracting and thats not what GM is trying to do with Buick. Sometimes too product planning isn't about current sales, its about allocating resources towards where the market is going, and GM doesn't believe that mid-premium sedans are where the market is going...its hard to refute the dominance of crossovers and their impact on the marketplace. I'm a sedan guy myself, but clearly the market shift is away from sedans and towards crossovers.
I think part of GM's issue is that Chevy is too blue collar a brand to appeal to a better heeled, "yuppier" type buyer. Toyota for instance, Honda, Hyundai, Chrysler, even Ford don't really have that issue. Chevy however has that blue collar type vibe that just feels out of place in front of a 5 star restaurant, at the valet stand of a nice hotel, etc.
I think thats why GM has kept Buick around, and also why they have kept GMC around on the truck side. As that perhaps starts to turn around some (if it does) I think you will see them scale Buick and GMC back.
To use myself as an example...I would never drive a Chevy. But I could see myself driving a Buick...and a Toyota, and a Honda, and a Hyundai, and a Ford and even a Chrysler, but not a Chevy. Nothing against Chevy their persona just doesn't jibe with me.
To the Verano, my guess is that a large proportion of those sales are to fleets. I see a lot of Veranos in rental fleets. Even though 32k is not an insubstantial amount of sales, my guess is most of that is low profit fleet contracting and thats not what GM is trying to do with Buick. Sometimes too product planning isn't about current sales, its about allocating resources towards where the market is going, and GM doesn't believe that mid-premium sedans are where the market is going...its hard to refute the dominance of crossovers and their impact on the marketplace. I'm a sedan guy myself, but clearly the market shift is away from sedans and towards crossovers.
Last edited by SW17LS; 05-09-16 at 03:37 PM.
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#8
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I personally have a lot of bad history with GM, and their mismanagement to this day just gets to me. Just look at how the whole Cadillac brand (minus the mediocre Escalade) is straight up flopping due to poor management. While I do find the ATS or CTS to be nothing special relative to the competition, they are still decent enough vehicles that their sales shouldn't be so far in the toilet. Management has made so many blunders whether it be with pricing, marketing, etc.
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#10
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The problem is that another Cadillac sedan that size, even a downmarket one, will probably cost too much. (the ATS is a good example, and didn't sell). The Verano's appeal (and why it sells) has been that it offers refinement, quietness, and plush seating (if somewhat cramped inside) at a price only slightly more than mainstream compacts. Cadillac simply does not do that....you pay a Cadillac price.
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To use myself as an example...I would never drive a Chevy.
#12
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And what are they going to do when that compact Cadillac flops? The problem is that another Cadillac sedan that size, even a downmarket one, will probably cost too much. (the ATS is a good example, and didn't sell). The Verano's appeal (and why it sells) has been that it offers refinement, quietness, and plush seating (if somewhat cramped inside) at a price only slightly more than mainstream compacts. Cadillac simply does not do that....you pay a Cadillac price.
#13
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I'm curious as to why the Verano even existed. Which clowns in Detroit and Warren really thought there was a business case for it? Introducing a rebadged Cruze into the Buick lineup had no chance in h3ll of attracting younger buyers to the brand.
Now the bean counters at GM have introduced their ugly little Cascada convertible which is just a rebadge of a dated Opel. I guarantee that the Cascada will be a flop. There is already no market for cheap convertibles not named Miata, Mustang, or Camaro; add a Buick badge to it and it being a dated design already and it's a recipe for disaster. The Regal is another dated badge engineered Opel which isn't selling. GM thought an "GS" sports trim would lure people to the brand which it did not, I doubt 9/10 people have even heard of it.
I'm genuinely curious as to why Buick even exists, there is absolutely no market for it. Buick used to be a stop-gap between the main steam and luxury market, but now that is pointless given how Mercedes, Audi, Lexus, and Acura all have small cheap sedans and crossovers starting in the low-$30K range. People would rather drive a base model A3 than a mildly-equipped Verano. GM just doesn't get it.
GM are and always will be incompetent crooks.
Now the bean counters at GM have introduced their ugly little Cascada convertible which is just a rebadge of a dated Opel. I guarantee that the Cascada will be a flop. There is already no market for cheap convertibles not named Miata, Mustang, or Camaro; add a Buick badge to it and it being a dated design already and it's a recipe for disaster. The Regal is another dated badge engineered Opel which isn't selling. GM thought an "GS" sports trim would lure people to the brand which it did not, I doubt 9/10 people have even heard of it.
I'm genuinely curious as to why Buick even exists, there is absolutely no market for it. Buick used to be a stop-gap between the main steam and luxury market, but now that is pointless given how Mercedes, Audi, Lexus, and Acura all have small cheap sedans and crossovers starting in the low-$30K range. People would rather drive a base model A3 than a mildly-equipped Verano. GM just doesn't get it.
GM are and always will be incompetent crooks.
There is a Verano two spots from at my garage in TO. I see it when I get there and when I leave. The owner is 82 years old. The car does have some good qualities.
I can't see GM killing the Verano, but then again there were rumors of a Cruze based Cadillac a while back.
#14
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And what are they going to do when that compact Cadillac flops?
The problem is that another Cadillac sedan that size, even a downmarket one, will probably cost too much. (the ATS is a good example, and didn't sell). The Verano's appeal (and why it sells) has been that it offers refinement, quietness, and plush seating (if somewhat cramped inside) at a price only slightly more than mainstream compacts. Cadillac simply does not do that....you pay a Cadillac price.
The problem is that another Cadillac sedan that size, even a downmarket one, will probably cost too much. (the ATS is a good example, and didn't sell). The Verano's appeal (and why it sells) has been that it offers refinement, quietness, and plush seating (if somewhat cramped inside) at a price only slightly more than mainstream compacts. Cadillac simply does not do that....you pay a Cadillac price.
You assume a compact Cadillac will flop.
GMCs, though, are little more than upscale rebadges Chevy trucks and SUVs. Buicks, except for the Trax/Encore, are more differentiated from their Chevy companions....the Regal and Verano especially so.
Have you sampled a new Impala? That car is surprisingly impressive...IMO the best product (in relation to its competition) that the bow-tie division currently sells.
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OK.....i'll admit one cannot always predict in advance how well a new product will sell (and, yes, I've cautioned others against doing that). But, given Cadillac's recent history of poor marketing and pricing issues, it probably does not bode well for an ATS successor unless it's more value for one's money than previous attempts have been.
Perhaps so, but Chevy trucks/SUVs, in general, outsell their GMC counterparts. In fact, the Silverado/Sierra twins, which are essentially the same vehicle except for trim, together outsell the extremely popular Ford F-150.
I can think of better ways to promote vehicles without vulgarities like that.
I'm not saying GMC is equal to Buick in differentiation. I'm saying they keep GMC around because Chevy has an image issue in the upper end.
I have, its a good car but I would never drive one. It just makes me think of an old 90s S10 with a picture of Calvin peeing on a Ford logo in the rear window.