U.S. automotive sales in recent months have the slowed down a touch. Industry pundits are predicting that the record sales pace of last year will not be repeated in 2016.
With unexpected low gas prices over the past few years, auto-buying trends by Americans have become quite topsy-turvy and purchases of truck-registered vehicles are now at an unexpected two trucks for each car sold pace. Who would’ve thunk it just a few years back when gas was heading for $5 a gallon.
A closer look shows that not all of the automotive segments are hurting. Certainly family size cars (Camry, Accord, Fusion, etc.), compact cars (Focus, Cruze, Impreza, etc.) and even gas-guzzling pickups are losing sales momentum, but the incredible success of crossovers, especially compact (Toyota RAV-4, Honda CR-V, Ford Escape, etc.) and sub-compact models (Buick Encore, Honda HR-V, Chevy Trax, etc.) reveal robust, record sales for these models. Also, some luxury segments are doing well.
Naturally, what people buy in big numbers has a huge impact on automaker planners and thinkers, both here in the States and in foreign countries that import vehicles to stateside. If you haven’t noticed, automakers are introducing crossovers in all sorts of sizes and price ranges.
Certainly the German luxury makers got the “crossovers are cool” memo and moved quickly to offer the models in all sizes. The Mercedes/BMW/Audi triplets have so many crossovers either in showrooms or in the pipeline, I can’t keep track of them all.
Sorry to say, the crystal ball used by our struggling domestic luxury brands must have been on the fritz a few years back and neither Cadillac nor Lincoln have a full lineup of the popular vehicles.
The crossover memo eventually did reach Cadillac and Lincoln and both GM and Ford are working feverishly to get more of the red-hot models into dealer’s showrooms in the couple of years. Last I read Cadillac has three crossover models in the oven. Without doubt, Lincoln has a few beauties planned as well. I hope better late than never works for those two in the months and years to come.
Another segment in the auto universe that is doing well are luxury trucks. Full-size, pickup truck sales are softening a bit but not top-of-the-line models. Readers may recall a few months back I wrote a column about the unexpected success by GMC with selling their high end Denali package since its introduction in 1999.
At the time of my column, it was reported that the Denali package was being installed on up to 25 percent of GMC trucks sold. These are trucks with a $5,000 to $8,000 premium over the next highest trim!
The luxury package became so popular when introduced on the full-size Yukon and Yukon XL SUVs; the dealers demanded that the Denali option be offered on all of the division’s offerings, from the entry-level Terrain to the mid-size Acadia. The latest GMC model to get the Denali treatment is the mid-size GMC Canyon.
GMC and Buick became a marketing pair back when GM exited bankruptcy in 2009 and since then the two-vehicle division has been headed by brand chief Duncan Aldred. I’m sure he more than anyone is delighted about the Denali success. Luxury trucks make big money for automakers.
With still robust interest in vehicles in luxury trim, it was not a big surprise when I read an announcement by GMC/Buick’s Aldred a couple of weeks back that Buick’s largest near-luxury sedan, the LaCrosse, will be available in a ultra-luxury trim or sub-brand.
No, it won’t be called the Denali, but rather the Avenir. This is the name Buick gave its gorgeous, svelte concept car that it introduced at the North American International Auto Show in Detroit back in January 2015. Avenir is a French word meaning “future.”
I’d rather have read that Buick was building a production version of the Avenir. But alas, the Avenir is not the newest Buick Roadmaster. Instead it is the division’s version of GMC’s Denali. Because of Denali’s success, I bet the idea of using the Denali name crossed their mind during the naming debate.
What buyers get with the Avenir option are larger wheels, a unique grille and premium trim features, among other upgrades.
GM did not divulge prices but we can assume the premium Avenir sub-brand will add several thousand dollars to the top-of-the-line LaCrosse Premium price.
Buick is attracting younger buyers and it has made significant inroads with women, and half of customers now come from competitive brands. Perhaps with the growing appetite for high-end touches, Buick will continue to grow its sales in the year ahead. It certainly didn’t hurt its chances when the division introduced the sporty Cascada convertible last spring and the attractive mid-size crossover, the Envision, made it to Buick showrooms this past summer. Next year the popular Enclave crossover will be replace with a brand new models as well.
Buick U.S. annual sales of around 200,000 pale compared to China Buick sales of more than 900,000, but the once proud, Flint-based American brand is slowing gaining back its mojo and I see bright skies ahead.
My disappointment will fade regarding GM’s decision to drop the capable and right-sized Verano and I will continue to be a cheerleader for the 113-year old All-American brand.
Buick recently introduced the third generation of its near-luxury LaCrosse sedan. To entice upscale buyers, the planners at Buick have decided to take a page from division stablemate GMC's lavish Denali luxury sub-brand and offer a elegant Avenir upgrade on the LaCrosse. What buyers get with the Avenir option are larger wheels, a unique grille and premium trim features, among other upgrades. The Avenir is the name given a Buick Concept that wowed audiences at the 2015 North American International Auto Show. Availability and price for the Avenir upgrade will be announced later.
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