Michigan Automotive News

GM announces new $44.5 million logistics center for Lansing plant

Tue, 21 May 2013 16:02:59 UTC

"This project is the latest example of how we’re doing business differently in GM today," Christine Sitek, GM North America manufacturing manager, said in a statement. "We've developed an innovative material strategy that increases efficiency and improves quality to benefit our customers, employees and the bottom line."

LANSING, MI -- General Motors Co. announced plans Tuesday to invest $44.5 million in a new, 400,000-square foot Logistics Optimization Center at the automaker’s Lansing Grand River Assembly plant.

Officials say the new center will create 200 jobs at the plant, which opened in 2001 and already employs more than 1,500 hourly and salaried workers.

“This project is the latest example of how we’re doing business differently in GM today,” Christine Sitek, GM North America manufacturing manager, said in a statement. “We’ve developed an innovative material strategy that increases efficiency and improves quality to benefit our customers, employees and the bottom line.”

Officials say investing in the logistics center will yield savings and improve efficiency through streamlining the flow of materials through the plant, reducing transportation costs, and reducing handling of parts, which will ultimately improve quality.

The end result will be a more nimble manufacturing process, officials say.

In March, GM announced plans to invest $40 million into the Lansing Grand River Assembly plant, a move that was contingent on approval of a $4 million tax break from the Lansing City Council.

The council approved the tax break in April.

The plant currently builds the Cadillac ATS and the three Cadillac CTS models – sedan, coupe and wagon, as well as high-performance V-Series models of each, with the first ATS coming off the line less than one year ago.

The ATS quickly racked up several honors, including 2013 Car of the Year at the North American International Auto Show.

The plant is also in line to build the next-generation Chevy Camaro.

E-mail Angela Wittrock: awittroc@mlive.com and follow her on Google+ and Twitter at twitter.com/AngelaWittrock or reach her by phone at 517.219.7073

Ford increasing production capacity, cutting summer shutdowns due to 'surging' demand

Wed, 22 May 2013 12:50:17 UTC

The Dearborn-based automaker today said it will add an additional 200,000 units of annual capacity this year, and will produce an extra 40,000 units by idling select plants for only one week during what has been the traditional two-week summer shutdown.

DEARBORN, MI- Ford Motor Co. is adding capacity and reducing summer shutdowns at numerous plants this year to meet high demand.

Jim Tetreault, vice president of North America Manufacturing, said the increased capacity is to meet “surging customer demand” for its top-selling models, including Ford Explorer, Ford Fusion and Ford F-Series.

“Approximately 75 percent of our plants are running at a three-crew, three-shift or four-crew pattern in order to ensure we’re getting more of our products into dealerships,” he said in a statement.

The 200,000 annual capacity additions this year will come from Chicago Assembly Plant, Flat Rock Assembly Plant and Kansas City Assembly Plant, according to Ford.

Additionally, 20 plants, including six assembly plants, will take a reduced summer shutdown. The assembly plants taking one week of shutdown are Chicago Assembly, Cuautitlán Assembly, Hermosillo Stamping and Assembly, Kentucky Truck, Michigan Assembly and Oakville Assembly.

Eight other stamping, engine and parts plants also will take a reduced summer shutdown, including Michigan’s Dearborn Engine; Dearborn Tool & Die; Van Dyke Transmission Plant; and Woodhaven Forging.

Summer shutdowns traditionally allow automakers to perform routine maintenance and model-year changeover work. It also is used as vacation time for plant workers.

Ford’s U.S. sales were up nearly 13 percent through April compared to last year.

This is the second year in a row Ford has taken the action in order to meet strong demand for its products.

Ford’s crosstown rivals General Motors Co. and Chrysler Group LLC have reduced summer shutdown in recent years.

Check back to MLive.com for more information.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Jim Harbaugh to pace Indy 500 in 2014 Corvette Stingray

Wed, 22 May 2013 11:55:20 UTC

Harbaugh, who took the 49ers to the Super Bowl last season, said it’s an honor and tremendous thrill to be selected to pace the race in the Laguna Blue Corvette Stingray Pace Car.

DETROIT- San Francisco 49ers head coach Jim Harbaugh will drive the 2014 Chevrolet Corvette Stingray Pace Car to start of the 97th Indianapolis 500 on Sunday.

Harbaugh, who took the 49ers to the Super Bowl last season, said it’s an honor and “tremendous thrill” to be selected to pace the race in the Laguna Blue Corvette Stingray Pace Car.

“As a longtime racing fan and someone who has always followed the Indianapolis 500, the honor to drive the pace car comes as a tremendous thrill,” Harbaugh said in a release. “It’s an iconic car leading an iconic race.”

Before coaching, Harbaugh was a quarterback for the Indianapolis Colts football team from 1994 through 1997. During his time with the Colts, he was named AFC Player of the Year and named to the Pro Bowl in 1995.

When the vehicle takes to the track of the 97th annual race May 26 at the Indianapolis Motor Speedway, it will mark a record 12th time the Corvette has served as the Pace Car, starting in 1978. A 2013 Chevrolet Corvette ZR1 led the starting field of the 96th Indianapolis 500.

“It’s great to have a true racing fan like Jim Harbaugh drive the Corvette pace car,” said Jim Campbell, U.S. vice president of Performance Vehicles and Motorsports, in a statement. “He personifies the Indianapolis 500’s spirit of competition – and he’s a true athlete, just like the all-new Corvette Stingray.”

That "spirit of competition" did get Harbaugh in trouble with Detroit Lions fans and head coach Jim Schwartz following a post-game handshake between the two coaches in 2011.

2013 also marks the 24th time a Chevrolet has served as the official Pace Car of the Indianapolis 500, more than any other brand, dating to 1948 with a Chevrolet Fleetmaster. Camaro has served in the role seven times and, with this year’s running, Corvette has led the way a record 12 times.

Besides its aesthetics, the only differences between production models and the Corvette Stingray Pace Car are track-mandated safety features and strobe lights, according to GM.

Powering the pace car and production Corvette Stingrays is GM’s all-new small-block, LT1 6.2-liter V8 engine that delivers an estimated 450-horsepower and achieve 0-60 in less than four seconds.

GM said the pace car does feature the optional track-capable Z51 package, which includes high-performance gear ratios; transmission-cooling system; larger 19-inch front and 20-inch rear wheels and tires; larger, slotted rotors and brake-cooling ducts; and other performance features.

The 2014 Corvette Stingray coupe goes on sale this fall, with a convertible model – featuring a fully electronic top that can be operated remotely with the key fob – coming a few months later.

The Stingray coupe, which debuted January in Detroit, will start at $51,995 and the Corvette Stingray Convertible will start at $56,995. Both prices are about $1,400 more than the 2013 models and include a $995 destination.

The vehicle's price tag can get a bit steeper if you want all the bells and whistles though. The Stingray coupe fitted with the major available options, as shown at the 2013 North American International Auto Show in Detroit, would be $73,360.

Click here for all the most-recent news regarding the 2014 Chevrolet Corvette Stingray.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Gentex Corp. announces departure of its chief financial officer

Tue, 21 May 2013 21:20:49 UTC

"Steve Dykman is a longtime, valued associate at Gentex, and we wish him the best in his future endeavors," said Gentex Corporation Chairman and Chief Executive Officer Fred Bauer, in a news release.

Gentex Corp. Chairman and CEO Fred Bauer announced the departure Tuesday, May 21File photo | Mlive Media Group

ZEELAND, MI - Gentex Corp. announced today that Steve Dykman, its longtime chief financial officer and vice president of finance, left the company as of Friday, May 17.

Dykman, who co-chaired the company’s annual shareholders meeting one day before his departure, will be replaced by Steve Downing, the company’s vice president of commercial management, the company said in a news release issued Tuesday, May 21.

"Steve Dykman is a longtime, valued associate at Gentex, and we wish him the best in his future endeavors," said Gentex Corporation Chairman and Chief Executive Officer Fred Bauer, in a news release.

Gentex, which makes automatic-dimming rearview mirrors and camera-based lighting and driver assist systems for the automotive industry, also announced that Kevin Nash has been appointed chief accounting officer.

RELATED STORY: Gentex Corp.'s chairman is upbeat despite 'headwinds'

“Steve Downing has eleven years of success and increasing responsibility in cost accounting, quotation development, forecasting, strategic partnerships, and new business development that is central to all of the Company's sales today,” Bauer said in the news release.

“We view this change as an opportunity for Mr. Downing to grow his already important contributions to the day-to-day management of the Company and to further use his exceptional analytical skills."

Gentex officials announced a conference call related to this news release will be simulcast live on the Internet beginning at 6 p.m. EDT on Tuesday May 21. MLive will cover the conference call and report on it in the “Comments” section of this article.

E-mail Jim Harger: jharger@mlive.com and follow him on Twitter at twitter.com/JHHarger

GM moving Treasury jobs from New York to Detroit

Tue, 21 May 2013 19:06:26 UTC

GM Treasury is responsible for a number of global corporate treasury functions and lends its expertise in the development and execution of corporate transactions worldwide. It has international offices in Shanghai, Sao Paulo, and Russelsheim, Germany.

General Motors world headquarters in the Renaissance Center in downtown Detroit.Jonathan Oosting | MLive.com

DETROIT- General Motors Co. Tuesday announced it will move about 70 positions from its Treasury Office in New York City to its global headquarters in Detroit in mid-2014.

“GM Treasury plays a critical role in the success of our company and locating the team in Detroit will fully integrate them into our core business operations,” said Dan Ammann, senior vice president and CFO, in a statement.

Dave Roman, a GM spokesman, said if current employees decide not to move to Detroit, GM would hire new people.

Roman said it is not uncommon for large corporations to have their Treasury Office located at their headquarters.

About 150 employees, including the GM Asset Management team and other support staffs, will remain in GM’s New York office, which will move in June to a new office location in Midtown Manhattan.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Chrysler CEO apologizes for Italian-American slur

Tue, 21 May 2013 18:23:49 UTC

DETROIT- Chrysler Group LLC and Fiat CEO Sergio Marchionne recently apologized for using an ethnic slur during the 2013 North American International Auto Show earlier this year in Detroit.

Chrysler Group LLC Chairman and CEO during the announcement inside the former Dime Building, now renamed Chrysler House, April 30.Michael Wayland | MLive.com

DETROIT- Chrysler Group LLC and Fiat CEO Sergio Marchionne recently apologized for using an ethnic slur during the 2013 North American International Auto Show earlier this year in Detroit.

During a press conference at the show in January, Marchionne used the term “wop engines” when discussing what engines the company wants to use when Alfa Romeo, which Fiat owns, returns to the U.S.

“I won't put an American engine into that car,” Marchionne said, according to a release. “With all due respect to my American friends, it needs to be a wop engine.”

The term wop is an ethnic slur used primarily, but not exclusively, to people from Italy.

In a letter from the Italian-born Canadian citizen to Dr. Emanuele A. Alfano, chairman of the Italian American ONE VOICE Coalition, Marchionne said he used the term “in jest,” and did not mean it to be offensive.

“It has been brought to my attention that my usage of the term has been seen by some as condoning or acknowledging the appropriateness of its general use,” reads the May 15 letter, which was posted on the organization’s Facebook page. “Nothing can be further from the truth.”

Officials said ONE VOICE, through a campaign of emails and letters, has repeatedly emphasized that ethnic slurs and negative images are not funny and “extremely damaging to the Italian American community at large.”

ONE VOICE is an organization dedicated to fighting negative stereotypes and images, which have perpetrated the public conscience to the detriment of the Italian American image.

Alfano said the organization was pleased with Marchionne’s apology, even though it came months after the initial incident.

“On behalf of our Board of Directors, our members, Coalition Organizations and Italian Americans in general, I thank Mr. Marchionne and Chrysler/Fiat for their sensitivity to our concerns,” he said in a statement

Marchionne, who can be outspoken at times, ended the letter by saying his remarks were unacceptable and apologized to “anyone who may have been offended.”

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

GM North America President Mark Reuss says company would be (mostly) unaffected by Detroit bankruptcy

Tue, 21 May 2013 17:12:00 UTC

DETROIT, MI - General Motors North America President Mark Reuss told reporters Monday that the automaker would be largely unaffected if Detroit declares bankruptcy. Reuss made the comments after GM announced it has hired 110 high school students to work on service projects in Detroit-area neighborhoods this summer. Detroit has $15 billion in short- and long-term debt and a more...

General Motors has hired 110 high school students to work on service projects in Detroit-area neighborhoods this summer.David Muller

DETROIT, MI - General Motors North America President Mark Reuss told reporters Monday that the automaker would be largely unaffected if Detroit declares bankruptcy.

Reuss made the comments after GM announced it has hired 110 high school students to work on service projects in Detroit-area neighborhoods this summer.

Detroit has $15 billion in short- and long-term debt and a more than $300 million budget deficit. Emergency Manager Kevyn Orr said the city is "broke," and his office will use the next six weeks to determine whether or not Detroit should file for bankruptcy.

"I don't see it as a big economic impact or operational impact on us," Reuss said of the potential municipal bankruptcy's affect on GM. He said the bankruptcy could take an emotional toll on some, but reminded reporters that his company knows bankruptcy well.

GM field for Chapter 11 bankruptcy protection in June 2009. It followed the company reporting a $39 billion loss in its 2007 fiscal year and $31 billion loss in 2008. Then, in 2009, the company projected it would run out of cash by mid-year.

When it filed for bankruptcy protection in June, the company was down to about $2 billion in cash on hand. The U.S. government has invested nearly $85 billion to help both GM and fellow Big Three automaker Chrysler Group LLC to restructure and improve operations during and after their bankrutpcies.

GM paid back $8.1 billion in government loans in April 2010. The U.S. government still owns about $2.1 billion in preferred stock and $45 billion in common equity - a 61 percent stake. A White House report to Congress last August said the American taxpayers lost about $25.1 billion in the company's bankruptcy.

Buick: Will General Motors' middle child survive another 110 years? (Wayland column)

Tue, 21 May 2013 16:09:45 UTC

Placed between Chevrolet and Cadillac, Buick is the middle child of General Motors (let’s consider GMC a truck cousin). And like some middle children, it wasn’t given enough attention until it was in trouble. In its early years, Buick was GM’s darling. On the success of the Buick Motor Co., William C. “Billy” Durant co-founded GM. And even after GM adopted other children, including older brother Cadillac, Buick remained strong.

DETROIT- Buick’s heritage is arguably richer than any other automotive brand in America.

Yet, in recent years, the 110-year-old brand has rightfully fallen from grace with many U.S. consumers due to lackluster vehicles and its reputation as an “old person’s car.”

Placed between Chevrolet and Cadillac, Buick is the middle child of General Motors (let’s consider GMC a truck cousin). And like some children, it wasn’t given enough attention until it was in trouble.

In its early years, Buick was GM’s darling. On the success of the Buick Motor Co., William C. “Billy” Durant co-founded GM. And even after GM adopted other children, including older brother Cadillac, Buick remained strong.

But as years went by, GM adopted a few too many children. Costs, including $134 billion in pension obligations, piled up and Buick was primarily forgotten. Then, in 2009, child services demanded GM shed its household budget by giving up some of its children. Many thought Buick, stuck in-between luxury Cadillac and mainstream Chevrolet, was bound to be given up as its sales and reputation dwindled.

Buick’s U.S. sales torpedoed down from 432,017 vehicles sold in 2002 to a recent-low of 102,306 in 2009. The brand’s market share also spiraled down from 2.6 percent to 1 percent during that same time period, according to Edmunds.com.

In the end, GM kept Buick which had, like some middle children, decided to try and make a life for its own where its siblings weren’t. That place was China. It was there Buick again made a name for itself and flourished as the “cool” brand for the elite and wealthy.

China spurred GM to sell 895,133 Buick vehicles worldwide in 2012, a 7 percent increase from 2011 and a 55 percent increase from 2002.

Led by Buick, Shanghai GM’s sales increased 10.9 percent last year to a record more than 1.3 million units in China. Buick sales in China increased 8.4 percent on an annual basis, finishing 2012 at a year-end high of 700,007 units, dwarfing the brand’s U.S. sales of about 180,400 vehicles.

But now, can Buick, which celebrated its 110th birthday on Sunday, regain its fame in the U.S. and last another 110 years?

In short, anything’s possible. The automotive industry is as cyclical as any business in the world. With new generations, perceptions change.

“Eventually, times change and people that are young today might not see it as an ‘old person’s car,’ ” Jessica Caldwell, Edmunds.com senior analyst, told me for MLive.com’s 110th anniversary series of Buick. “It could definitely be one of those reborn brands -- especially if it is competing on a global scale.”

Buick is gaining back its sales and reputation thanks to compelling products entering new segments. The most-recent examples are the Verano compact sedan and Encore small crossover, which are both attracting new customers to the brand.

According to Buick, the average customer age for the brand has dropped to 57, a seven-year decline from five years ago, and the brand’s overall conquest average has increased 43 percent over the last five years. Officials say more than 50 percent of Verano buyers are new to Buick.

In the U.S., Buick is in the midst of changing its image for the next-generation of U.S. consumers with stylish new entries, such as the Encore, and fuel-efficient technologies like the eAssist electrification system, which debuted on the 2012 Buick LaCrosse.

The brand is offering its best, most-complete lineup of vehicles in decades, and we should expect to see Buick’s sales continue to grow in years to come.

Editor’s note: This article in part of MLive.com’s series on Buick for its 110th anniversary on May 19. Click here for an outline of the full series, and continue to check back to mlive.com/auto for all of the articles.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

Christina Keller named president of key unit at Cascade Engineering

Tue, 21 May 2013 14:30:57 UTC

The youngest daughter of Fred Keller, Cascade Engineering's chairman and CEO, Keller will lead business strategy and operations at CKT's four facilities in Mount Airy, N.C., Montpelier, Ohio, and Brownsville and Fort Worth, Texas, which together comprise more than 500 employees.

Christina Keller

GRAND RAPIDS, MI -- Christina Keller has been named president of CK Technologies (CKT), a key business unit in the Cascade Engineering Family of Companies that specializes in developing technologies for the commercial truck and bus industry.

The youngest daughter of Fred Keller, Cascade Engineering’s chairman and CEO, she will lead business strategy and operations at CKT’s four facilities in Mount Airy, N.C., Montpelier, Ohio, and Brownsville and Fort Worth, Texas, which together comprise more than 500 employees. She will report to Cascade Engineering President Mark Miller.

Most recently, Keller led Cascade’s Triple Quest business unit, a pioneering social enterprise she launched in 2009. Triple Quest’s Hydraid BioSand water filter has provided safe drinking water to 380,000 people in 36 countries worldwide.

“I am continually inspired by Cascade Engineering’s innovation, vision and values, and in particular by the dedication of the teams I have had the privilege to lead and work with over the years,” said Keller in a news release announcing her promotion.

“I am honored to join the executive leadership team at CK Technologies. The team is focused, experienced and driven, and I have no doubt that together we will continue to achieve a high growth trajectory.”

Keller and her husband, Andy, along with their son, Jackson, live near CKT’s Montpelier, Ohio facility.

Prior to joining Cascade Engineering, Keller held management positions at Polaris Management Partners, LLP and Accenture in New York. She also served as a project manager for Environmental Resources Trust in Washington, D.C.

“The future of CKT Technologies is bright, given the proven leadership and fresh perspective that Christina Keller brings to her new role within the Cascade Engineering Family of Companies,” said Cascade Engineering President Mark Miller.

“We congratulate Christina and look forward to the exciting strides she and her team will take in one of our most important markets.”

Keller holds a bachelor’s degree in international studies from Boston College and an MBA from Cornell University with a concentration in sustainable global enterprise. She has studied abroad in Switzerland, Costa Rica and Chile, and holds a Master Black Belt Certificate in Lean Six Sigma from Villanova University, as well as a Certificate in International Economics from American University.

"I am confident that Christina's experience, leadership skills and desire to carry on our family values will assure the continued growth and prosperity of CK Technologies," said Fred Keller, Chair and CEO of Cascade Engineering.

Based in Cascade Township, the Cascade Engineering Family Of Companies is a global organization with more than 1,100 employees and 13 business units.

E-mail Jim Harger: jharger@mlive.com and follow him on Twitter at twitter.com/JHHarger

High school students begin planning ways to fix up Detroit neighborhoods through new GM program

Mon, 20 May 2013 17:14:24 UTC

DETROIT, MI - Although still a few years from college, Destinee Pennington, a 10th grader at Harper Woods High School, said she is interested in studying psychiatry. But she said she is still a bit shy about talking to people, so the 16-year-old said she looks forward to using a paid summer internship for General Motors to help her meet...

DETROIT, MI - Although still a few years from college, Destinee Pennington, a 10th grader at Harper Woods High School, said she is interested in studying psychiatry.

But she said she is still a bit shy about talking to people, so the 16-year-old said she looks forward to using a paid summer internship for General Motors to help her meet new people while improving the community around her school.

“We’re talking about planting a lot of things, and maybe a community garden,” Pennington said.

Pennington is one of 110 students from 11 Detroit area high schools that have been chosen for the first year of GM Student Corps, a program the automaker is sponsoring to pair the high school students with GM retirees and current employees on community service projects throughout the city.

The students are planning their projects now and will begin work in mid-June. The program will conclude in August. They are working in groups of 10 to put together the service programs, and will be led by 60 GM retirees and 12 GM student interns from the University of Detroit Mercy. Overseeing GM Student Corps is Mike DiGiovanni, a former GM executive who retired in 2010 and is now a full-time professor of economics at UDM.

GM is not disclosing how much money is being spent on the program, which is paying the students.

“Of course, the money is nice, but (students) will take away experiences that can’t be had for any price,” DiGiovanni said Monday.

Detroit Mayor Dave Bing said the effort underscores Detroit as a comeback city. He said the young people involved with GM Student Corps will learn from the GM veterans, and vice versa.

“You’ve got the ideas that are going to make a difference in our city,” Bing said to the students at a press conference Monday.

Some of the students’ work could include cleaning up parks, tending a community garden or setting up local food banks.

Participating schools include: Central Collegiate Academy, Detroit Public Schools Cody Campus, East Detroit High School, Hamtramck High School, Harper Woods High School, Henry Ford High School, Madison High School, Melvindale High School, Detroit Public Schools Osborn Campus, River Rouge High School and Van Dyke Lincoln High School.

GM North America President Mark Reuss said the company had been considering for some time how to get local students involved with both the company and the community; many students often express interest in working for GM. He said equally important was involving the company’s large base of retirees.

“We put all that together, and put together what we feel is something really powerful here,” he said.

The interns will also be exposed to career and education opportunities at Focus:HOPE, the Junior Achievement “Financial Park,” the GM Design Center and GM Heritage Center, the GM Detroit-Hamtramck Assembly Plant and the UDM campus, company officials said.

The engineering tour will especially appeal to Brandon Rutland, a 17-year-old 11th grader at Cody Academy of Public Leadership who says he intends to study mechanical engineering at Michigan State University.

Rutalnd said his Student Corps group is still in the planning stages, and is focused on beautifying areas around his school. He said they have been considering taking weedwackers to a local tennis court, and cleaning up local football fields.

“The school itself looks nice, so we got to fix up the neighborhood now,” he said.

GM hires 110 area high school students to fix up Detroit neighborhoods

Mon, 20 May 2013 15:45:21 UTC

DETROIT, MI – General Motors announced Monday a new program that will place 110 Detroit-area high school students in paid internship positions that involve service work throughout Detroit this summer. Called the GM Student Corps, the work the students will develop and implement service projects in Detroit-area neighborhoods. A press conference led by GM North America President Mark Reuss is...

General Motors President North America Mark Reuss addresses the gathering at the Automotive News World Congress Wednesday, January 16, 2013 in Detroit, Michigan. (Photo by John F. Martin for General Motors) GM

The students, from 11 United Way Network of Excellence schools, will work in groups of 10 to put together the service programs, and will be led by 60 GM retirees and 12 GM student interns from the University of Detroit Mercy. Overseeing GM Student Corps is Mike DiGiovanni, a former GM executive who retired in 2010 and is now a full-time professor of economics at UDM.

The students are planning their projects now and will begin work in mid-June. The program will conclude in August.

Some of their work could include cleaning up parks, tending a community garden or setting up local food banks.

The interns will also have access to career and education opportunities at Focus:HOPE, the Junior Achievement “Financial Park,” the GM Design Center and GM Heritage Center, the GM Detroit-Hamtramck Assembly Plant and the UDM campus, the company said.

Auto Review | 2014 Chevy Impala a beautiful head turner inside, out

Mon, 20 May 2013 11:50:45 UTC

The first thing you should know about the 2014 Chevrolet Impala is it’s a head turner. Within days of driving the new full-size sedan, three people stopped me to compliment or talk about the vehicle. Watch video

DETROIT- The first thing you should know about the 2014 Chevrolet Impala is it’s a head turner.

Within days of driving the new full-size sedan, three people stopped me to talk (or gesture) about the vehicle.

The first was a woman most likely in her 40s. She purchased a 2013 Chevrolet Malibu last year and said she couldn’t wait to pass it down to her daughter or trade it in as soon as possible to get the new Impala. “They have really stepped up their game,” she told me inside a parking garage in Detroit.

The second surprisingly came when I was driving the vehicle. Stopped at a red light in downtown Detroit, I heard aggressive honking to my left. When I looked over, it was a city bus driver giving me the thumbs up and pointing to the vehicle.

The last was a 69-year-old man from the suburbs. He said, “If it wasn’t for the name on the side, you could tell me it was a Lincoln.” While some might not think that’s a compliment nowadays (Consumer Reports), he meant it as one.

The attention the vehicle brings is exactly what General Motors Co. was attempting to do when it pledged to resurrect the Impala from a lackluster, yet profitable, fleet vehicle to an iconic car like many of its previous generations.

A 2014 Chevrolet Impala (right) sits next to an eighth-generation Chevy Impala.Michael Wayland | MLive.com

The 2014 Impala delivers on nearly every level. It’s roomy, luxurious (even the base model features an array of options) and stands out thanks to its aggressive interior and exterior. It’s attracting attention from people of all ages, races and lifestyles.

Mentioning the two previous generations of the Impala seems almost disrespectful since this article is about the 10th-generation, so I’ll just say, the 2014 model puts them to shame.

The first thing you notice when getting into the driver’s seat is the cockpit-feel reminiscent of the second-generation Buick LaCrosse, which it shares the same platform with.

Driving the Impala, like the LaCrosse, is smooth and quiet. And while the vehicles share a number of the same characteristics, the Impala’s design just stands out in a way it hasn’t in decades.

Overall, GM expects the new vehicle, which debuted last year during the New York Auto Show, to substantially increase retail customers; up leasing by about 35 percent; grow the entire full-size segment; and bring in new, younger customers.

As I wrote before, many people wouldn’t have even batted an eye at that statement a decade or so ago. Things were good. GM, like the Impala, appeared too big to fail. But nowadays, those are some lofty goals as large sedan sales have driven off a cliff, consumers are demanding more fuel-efficient vehicles and mid-size sedans are getting bigger. Not to mention, the Impala had close to a 0 percent leasing rate, only 30 percent retail sales and an average customer age in their 60s.

In 2007, large sedan sales in the U.S. topped 1.1 million units and represented 7.1 percent of the more than 16 million vehicle market, according to Edmunds.com. In 2012, large sedan sales were around 560,000 units and represented only 4 percent of the 14.5 million vehicle market.

Having pointed those road blocks out in the last two paragraphs, GM’s goals are not impossible.

Since 2010, Impala sales have remained between 169,000-172,000 units, including 169,351 last year. The vehicle, even with its conformist design, has been the best-selling large sedan since 2004.

When launching production on the Impala at GM’s Detroit-Hamtramck facility earlier this year, Don Johnson, vice president of Chevrolet sales and service, said he expects Impala sales this year to top last year, with help of the Impala ”Limited” that will only be offered to fleet customers.

Johnson said the Limited model, which is essentially the ninth-generation, will continue to fill fleet demand as the new Impala attracts new buyers to Chevrolet dealerships.

“There’s still very good demand for an Impala like the Limited that is out there,” he said. “By having both vehicles, we’re going to maximize both our retail and our fleet opportunity.”

The only downfalls to the 2014 Impala are pricing and, to a lesser extent thanks to the upcoming eAssist model, fuel economy.

Although pricing for the vehicle starts just under $28,000, like most cars today, add a few bells and whistles and you’re price increases a few grand, sometimes more. The sedan will be offered in LS, LT and LTZ models, and three direct-injected engines: a 3.6-liter V6, new 2.5-iter four-cylinder and a 2.4-liter four-cylinder with eAssist. The 3.6-liter, 305-horsepower-engine came to market first, with a starting price of $30,760 for the LT and $36,580 for the LTZ, including $810 in destination charges. The 2.5-liter engine is priced as follows: $27,535 for the LS; $29,785 for the LT; $34,555 for the LTZ. Pricing for the 2.4-liter engine with eAssist will be announced closer to its launch in the fourth quarter of this year, officials said.

The 3.6-liter LTZ model I drove with most, if not all the add-ons, costs about $39,900; which makes in-line with many of its main competitors in the full-size sedan segment for luxury, but above the majority of starting prices for base model Cadillacs.

The Impala’s top five competitors are Chrysler Group LLC’s Dodge Charger and Chrysler 300; Ford Motor Co.’s Taurus; Toyota Motor Corp.’s Toyota Avalon, which was redesigned last year; and the Nissan Altima, which went into production in July.

Impala chief engineer Todd Pawlik said the 2014 Impala with the 3.6-liter engine can achieve 29 mpg on the highway and 19 in the city. Expected fuel economy ranges for the other engines include 21 mpg city and 31 mpg highway for the 2.5-liter and 25 mpg city and 35 mpg highway with the eAssist engine. Only the 3.6-liter has been certified by the EPA, he said.

For the 2013 model year, fuel economy for the non-hybrid large sedan segment with front-wheel-drive ranged from 26 combined mpg for the 2013 Ford Taurus with a four-cylinder to less than 20 mpg combined.

While the fuel economy of the 2014 Impala is great for the segment, getting less than 30 nowadays just doesn't seem right with the advancements in technology.

The traditional 2.5-liter and eAssist engines should boost the fuel economy up quite a bit, but this vehicle, like the classic Impalas of the ‘50s and ‘60s, deserves at least a V6 engine under the hood.

GM has built about 16 million Impalas since introducing the nameplate in 1958. The vehicle was previously redesigned in '06, '00, '94, '77, '71, '65, '62 and '59.

If the 2014 Impala can live up to its iconic heritage is yet to be seen. But one thing is for sure, the vehicle’s design and performance already show that GM is serious about attempting to revive the nameplate as well as the large sedan segment.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

110 Buick facts, milestones during its 110 years in business

Sun, 19 May 2013 16:40:41 UTC

oday marks the 110th anniversary of David Dunbar Buick founding the Buick Motor Co. in Detroit. To celebrate this milestone for the General Motors Co.'s luxury brand, MLive.com has compiled 110 interesting facts and milestones for the brand as part of its series for Buick turning 110 years old.

DETROIT- Today marks the 110th anniversary of David Dunbar Buick founding the Buick Motor Co. in Detroit.

To celebrate this milestone for the General Motors Co. luxury brand, MLive.com has compiled 110 interesting facts and milestones for the brand as part of its series for Buick turning 110 years old.

1. Detroit plumbing inventor/executive David Dunbar Buick, already building gasoline engines, founds Buick Auto-Vim and Power Co. in 1899.

2. Walter L. Marr built an experimental Buick in 1899-1900, then bought it for $225 in 1901.

3. In 1902, Eugene C. Richard applied for a Buick patent on an overhead valve, or valve-in-head, engine. The design is later adapted across the auto industry.

4. David Dunbar Buick founds the Buick Motor Co. on May 19, 1903 in Detroit.

5. Flint Wagon Works purchased the Buick Motor Co. on Sept. 3, 1903, and moved it to Flint.

6. From 1903-1998 Flint, then known as “Vehicle City” for its vigorous carriage industry, was Buick’s home.

7. Buick helped William Crapo “Billy” Durant create General Motors in 1908.

8. Buick’s first vehicle, the 1904 Model B, was also the shortest, riding on an 83-inch wheelbase. The 2013 Encore luxury small crossover isn’t quite as small, but it does have the shortest wheelbase (100.6 inches) since the 1912 Model 34 (90.7 inches.)

9. In 1904, a famous test drive was taken by Marr and Buick’s son Thomas from July 9-12 from Flint to Detroit and back.

10. Willian C. “Billy” Durant, who would co-found General Motors, took charge of Buick on Nov. 1, 1904.

11. Buick produced 37 cars during its first year of production in 1904.

12. In 1905, Durant moved Buick’s car assembly temporarily from Flint to Jackson while raising money to create a huge factory on Flint’s north side.

13. From 1906-1907, Buick’s north Flint complex was built. Nearly 16 million Buicks were completed between 1907 and 1999.

14. After merger talks failed with Henry Ford, Durant created General Motors on Sept. 16, 1908.

15. Buick quickly became a part of General motors, followed by Oldsmobile, Cadillac and Oakland, which later became Pontiac in 1908-1909.

16. In 1908, Buick claimed U.S. car leadership with production of 8,820 vehicles.

17. Buick has a deep motorsports history, proving its performance on race tracks as early as 1908. A Buick has served as Official Pace Car of the Indianapolis 500 six times, and the brand also won two NASCAR Manufacturer Championships, in 1981 and 1982.

18. Between 1908 and 1910, Durant’s Buick racing team, headed by Wild Bob Burman and Louis Chevrolet, captured 500 trophies.

19. There are photographs of Dr. Sun Yatsen, first provisional president of the Republic of China, riding in a Buick in Shanghai in 1912.

20. In 1914, GM Field official Johnston Martin claimed Buick as the first car driven across South America. He sent a 1912 Model 28 from Buenos Aires to Santiago, Chile.

21. Buick introduced the six-cylinder engine and electric starter in 1914.

22. After just over three decades of engineering progress, the first production Buick topped 100 mph. It was the appropriately named 1936 Buick Century.

23. Durant, after losing GM (including Buick) to bankers, helped Louis Chevrolet form Chevrolet Motor Co in 1911.

24. Durant regained control of GM and built it into an empire from 1915-1916.

25. Walter P. Chrysler was Buick’s president in 1916.

26. From 1917-1918, Buick built Liberty aircraft engines, mortar shells, ambulances and experimental trucks for World War I.

27. In 1920, Walter P. Chrysler resigned as Buick president and later forms Chrysler Corp.

28. Durant, overextended in stock market, was again forced out of GM in 1920.

29. Buick built its one-millionth vehicle in 1923.

30. In 1925, Buick and GM Export sent a Buick around the world without an assigned driver, handing it off to various dealers to publicize worldwide service.

31. David Buck died March 5, 1929 at 74 years old.

32. In 1929, Buick opened its first sales office in Shanghai.

33. By 1931, all Buicks are powered by straight eight engines.

34. The 1938 Buick Y-Job, credited to famed designer Harley Earl, is regarded as the first concept car ever built. Its waterfall grille is still used on Buicks today, and it featured futuristic technologies like power windows. Earl drove the car himself for more than a decade.

35. In 1940, Buick debuted its Estate Wagon.

36. U.S. production hit a then-record of more than 320,000 units with nearly 8,000 being exported from the U.S. in 1941.

37. In February 1942, the last civilian car left a Buick facility before full attention was placed on engineering and producing aircraft engines, ammunition and the M18 tank destroyer, better known as the Hellcat.

38. The M18 and Hellcat logo originated in the design studio of Harley Earl, whose team also worked extensively on early camouflage paint. The logo, flanked by the words “Seek, Strike, Destroy,” depicts a wildcat biting down on crushed treads, signifying the Hellcat’s mission of targeting enemy tanks.

39. Buick engineers brought the Hellcat to life from the design team’s sketches and developed an innovative torsion bar suspension that provided a steady ride, according to GM.

40. Production of the M18 Hellcat began in mid-1943 and ended in October 1944. The project was so secretive that a story about the “new” tank destroyer ran in newspapers just a month before production ended.

41. Vehicle production restarted in 1945. Buick, like other auto brands, experienced tremendous growth through the '50s and '60s following WWII.

42. Durant dies March 18, 1947 at the age of 85 in New York.

43. On its reliability and quality, Buick, known as the “doctor’s car,” quickly turned into a brand that mainstream consumers aspired to own and the wealthy respected.

44. In 1955, Buick reached third place in the industry with 745,000 deliveries.

45. Buick became the first major corporate sponsor in golf with the Buick open at Warwick Hills near Flint in 1958.

46. In 1959, Buick sales slumped; Buick dropped the Roadmaster, Super, Century, and Special to introduce the LeSabre, Invicta and Electra.

47. The Buick Electra 225 nameplate was introduced in 1959, with the “225” referencing the model’s overall length in inches.

48. By 1975, the Electra grew to become the longest vehicle ever produced by Buick. It measured 233.7 inches from bumper to bumper.

49. In 1962, Buick Special, with first U.S. mass-produced V6 engine, is Motor Trend “Car of the Year.”

50. The 1963 Riviera, often regarded as one of history’s most beautiful cars, celebrated its 50th anniversary that year. The powerful sport coupe was said to be inspired by a Rolls-Royce that Buick design boss Bill Mitchell saw through a fog in London.

51. In 1965, Buick joined the muscle car-era with the first of 145,000 Gran Sport and GSX models.

52. Buick’s quickest car was also one of the brands rarest. Car and Driver magazine recorded 0-60 mph acceleration for the 1987 Buick GNX at just 4.6 seconds. Just 547 were built.

53. The controversial “boat-tail” design debuted on the Riviera in 1971. It survived three model years from 1971-1973.

54. The compact Skyhawk arrived in 1975.

55. Powertrain innovation is a Buick hallmark. Today, the company’s turbocharged, direct-injected 2.0L delivers 259 hp, but displacement was king in the 1960s and ‘70s. Buick’s largest engine, a 455-cubic-inch (7.5L) V-8, was introduced in 1970.

56. The 1979 Riviera was the first front-wheel-drive Buick.

57. The '70s and '80s were arguably Buick’s heyday. In 1985, production of the Century and Electra spurred Buick’s North American production to top 1 million.

58. In 1982, a soft-top Riviera helped lead the return of the convertible, which had disappeared from domestic lineups in the late ‘70s.

59. Buick worldwide sales topped 1 million for the first time in 1984.

60. In 1988, the Academy Award-winning film “Rain Man” prominently featured a 1949 Roadmaster convertible.

61. The Flint-built LeSabre ranked No. 1 in North America and No. 2in the world in major independent quality study in 1989.

62. Buick changed its slogan from “The Great American Road Belongs to Buick” to “Buick: The New Symbol for Quality in America” in 1989.

63. By the 1990s, Buick was sponsoring four PGA Tour events.

64. In 1991, Buick led the industry in improvement in market share and sales.

65. By the late 1990s, Buick was the industry-leader in supercharging.

66. A commemorative plaque was unveiled in 1994 at David Buick’s birthplace in Arbroath, Scotland.

67. In 1996, Durant was named to the Business Hall of Fame.

68. Buick offered hands-free experimental driving to officials and press in 1997.

69. Detroit once again became Buick’s home, when GM moved its headquarters from Flint to the Motor City in 1998.

70. In December 2009, the first Chinese Buick rolled off a production line in Shanghai.

71. Buick opened its “Gallery and Research Center” at Flint’s Sloan Museum in 1998.

72. The last of nearly 16 million Buick built in Flint rolled off the line on June 29, 1999.

73. The last Buick built in Flint was a 1999 LeSabre.

74. In 2001, the Rendezvous, a crossover vehicle, was Buick’s first model based on a truck since 1923.

75. In 2002, starting momentum for Buick’s centennial in 2003, Buick and Sloan Museum collaborated to take a selection of vintage Buicks on a tour of automotive museums across the country.

76. 2002 marked the last time Buick’s market share was above 2 percent in the U.S., according to Edmunds.com.

77. From 2002 to 2009, Buick’s sales drastically dropped about 330,000 units in the U.S.

78. Buick celebrated its 100th birthday on May 19, 2003.

79. To celebrate Buick’s centennial, Buick Club of America celebrated with a national meet in Flint.

80. In 2007, Buick introduced the 2008 Buick Enclave, which remains one of its most-popular models. It marked the beginning of Buick’s new design direction.

81. For the 2007 model year, Shanghai GM introduced the Buick LaCrosse.

82. In 2008-2009, Buick’s U.S. market share dipped to 1 percent.

83. In 2009, GM and government officials reach the decision to keep Buick as a brand.

84. Buick’s U.S. sales were about 102,300 vehicles, a record-low for the brand.

85. On June 1, 2009 GM went into a government-backed bankruptcy.

86. In October 2009, Buick announced it would resurrect the Regal name for a new sedan.

87. The second-generation Buick LaCrosse received rave reviews for its design when introduced as a 2010 model.

88. 2010 marked the first time Buick experienced increased sales in the U.S. since at least 2002.

89. In January 2010 Buick debuted the Regal GS showcar at the 2010 North American International Auto Show.

90. In October 2010, GM announced an investment of $145 million at the Orion Assembly Center to build the Chevrolet Sonic and Buick’s future compact sedan – the all-new Verano.

91. In November 2010, GM said the 2012 Lacrosse would debut Buick’s eAssist, a new mild hybrid as its base model.

92. Buick debuted the Verano during the 2011 North American International Auto Show in Detroit.

93. In 2011, Buick partnered with the NCAA to become the “official partner of human achievement.” This year marked the third-consecutive year of the partnership.

94. In July 2012, less than a year after its launch in China, sales of the Buick LaCrosse reached 100,000 units.

95. The fastest production Buick in history is today’s Buick Regal GS luxury sport sedan. At the 2012 Nevada Open Road Challenge, it recorded a top speed of 162 mph.

96. Buick has made many models with seating for two, four, five or six passengers. But only twice in 110 years has the brand produced vehicles with seating for up to eight: the 2008-2013 Enclave and the 1991-1996 Roadmaster Estate.

97. Buick debuted the Encore during the 2012 North American International Auto Show in Detroit.

98. Buick introduced its “Experience Buick” campaign, which offers the security and convenience of a 24-month lease that includes routine maintenance, an OnStar Directions and Connections plan and SiriusXM radio, all bundled into one simple monthly payment.

99. Through the end of 2012, Buick has sold more than 43 million vehicles. That’s the equivalent of every vehicle sold in the United States over the past three years.

100. In March 2012, Buick and GMC told dealers that the brands will introduce nine new or significantly updated models in the next 12 months, starting with the new Buick Enclave luxury crossover SUV and GMC Acadia crossover SUV .

101. Amid an aggressive product overhaul in October 2012, Buick announces its average customer age for the brand has dropped to 57, a seven-year decline from five years ago.

102. Buick retail sales for 2012 were up 6 percent over 2011 and at the highest level in six years, giving the brand its third consecutive year of retail sales gains in 2012. Buick total sales increased 2 percent in 2012 and were the highest since 2007.

103. Led by Buick, Shanghai GM’s sales increased 10.9 percent to a record more than 1.3 million units in China in 2012.

104. Buick sales in China increased 8.4 percent on an annual basis, finishing 2012 at a year-end high of 700,007 units, dwarfing the brand’s U.S. sales of about 180,400 cars and trucks.

105. January 2013 marked the first deliveries of Buick’s new luxury small crossover, the Encore.

106. Buick’s February 2013 retail sales were the best since 2004 with a 13 percent year-over-year increase, the 10th consecutive month of higher sales to individual customers. Total sales, including those sold to executive fleets and other commercial customers, were up 15 percent.

107. A year after its debut, Experience Buick leasing -- a two-year term with a single monthly payment that includes entertainment, safety and maintenance features -- led Buick to double its leasing business as a share of total sales over the last 12 months.

108. Buick debuted the 2014 Buick LaCrosse and Regal during the 2013 New York International Auto Show in in March.

109. Buick debuted the new Riviera concept at the Auto Shanghai 2013 in April.

110. Buick celebrates its 110th anniversary on May 19, 2013.

Information in this article was compiled through interviews, research and "The Buick: A Complete History" written by Terry B. Dunham and Lawrence R. Gustin.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

21st-century Buick: Redefining itself, growing internationally

Sun, 19 May 2013 13:50:31 UTC

For the last century, Buick, which celebrates its 110th anniversary today, relied heavily on its heritage and name to sell vehicles. The brand -- founded as the Buick Motor Co. on May 19, 1903 -- started when people were still referring to automobiles as “horseless carriages” and General Motors co-founder William C. “Billy” Durant was still a Flint carriage company owner.

DETROIT- Nicole Miller is part of a new, younger generation of Buick customers.

The 36-year-old Metro Detroit resident purchased a 2013 Buick Regal Turbo last year based on its performance and looks, without necessarily considering the brand’s image or heritage.

“I just thought they were a nice-looking sedan,” she said. “I was looking for a new car and that one had everything I was looking for.”

Miller, who previously owned a Saturn Ion, is part of a growing number of buyers that have helped Buick lower its average buyer age and redefine itself following General Motors Co.’s government-backed bankruptcy four years ago.

But in the late-1990s and 2000s, the brand’s image in the U.S. wasn’t what it once was. The vehicles were primarily re-badged Chevrolets or Pontiacs, and the majority of people purchasing the vehicles were doing so purely because of it was a Buick’, according to analysts.

“Because it established that so desirable brand image for so many years, it never really lost its appeal for cert age groups,” said Karl Brauer, editor in chief and CEO of car comparison and research website TotalCarScore.com. “Certain generations always liked the car and that was good and bad.”

The good, according to Brauer, was GM could continue selling Buicks to these customers for their entire lives ,even as the “brand’s image rightfully started to slide.” The bad, he said, was the brand had no distinct characteristics and it was losing generations of new consumers who didn’t care about the brand’s image.

From 2002 to 2009, the brand’s U.S. sales torpedoed down from 432,017 vehicles sold to a recent-low of 102,306 cars, according to Edmunds.com. The brand’s market share also spiraled down from 2.6 percent to 1 percent during that same time period, according to Edmunds.com.

During that time period is when the “old person car” persona for Buick hit an all-time high, according to analysts. And as GM was going through its restructuring and government-backed bankruptcy, many thought Buick was going to be scrapped.

“If you would have said Pontiac or Buick (in 2008-2009), Pontiac would have gotten the nod from most Americans because it still had a more interesting history, it was still … not necessarily meaningful at the time, but it had a more lasting legacy” Brauer said.

In the end, Buick survived and it was Pontiac that was axed with the SAAB, Hummer and Saturn brands in 2010.

But Buick surviving really had little to do with its heritage in the U.S. according to analysts. The brand, even through its dark days of just being re-badged vehicles form other brands, never lost its popularity in China.

“On a global basis, Buick is so big in other parts of the world (specifically China),” said Jessica Caldwell, senior analyst for the auto research website Edmunds.com. “That’s a big reason why it’s still selling here in the U.S. following the bankruptcy.”

Chinese consumers are expected to purchase 30 million vehicles annually by 2020, which bodes well for Buick. China is Buick’s highest-volume market thanks to its own rich heritage of being an emperor’s vehicle.

Buick’s first sales office in China opened in 1929, but there are photographs of Dr. Sun Yatsen, first provisional president of the Republic of China, riding in a Buick in Shanghai in 1912.

The China Association of Automobile Manufacturers said automakers sold 19.3 million vehicles in China in 2012, nearly 4 million more than the U.S. market.

China spurred GM to sell 895,133 Buick vehicles worldwide in 2012, a 7 percent increase from 2011 and a 55 percent increase from 2002.

Domestically, sales are increasingly as well. Led by an entirely new lineup of vehicles, sales were up 76 percent from 2009 to 180,408 in 2012.

While still minuscule compared to its sales in China, Buick U.S. Vice President of Buick Marketing Tony DiSalle said the brand should continue to improve domestically with the upcoming next-generation Enclave and 2013 Encore small crossove, which launched in January.

Buick is at the midst of its second vehicle lineup overhaul since its near-death experience in 2009.

The first “design renaissance,” as DiSalle puts it, started with the 2008 Enclave full-size crossover SUV, followed by the 2010 LaCrosse large sedan, 2011 Regal midsize sedan and 2012 Verano compact sedan.

Through April, Buick sales were up 23 percent from the same time a year ago to 64,777 units. The best-selling vehicle domestically this year is the Enclave, topping 20,609 units through April.

“It was really the combination of Buick’s positioning combined with this great new product that has enabled us to kind of achieve the momentum in the market place that we’ve seen,” DiSalle said. “Now is as strong a time as any, in certainly our recent history, in terms of the product offering.”

The new products have given a new life to Buick and brought a new generation of customer to the brand. According to Buick, the average customer age for the brand has dropped to 57, a seven-year decline from five years ago, and the brand’s overall conquest average has increased 43 percent over the last five years. Officials say more than 50 percent of Verano buyers are new to Buick.

“I think it’s a really exciting time to be in the Buick business right now,” DiSalle said. “It’s really taken this combination of a well-positioned brand through history … and continuing to innovate and never really being complacent at all.”

DiSalle said part of Buick's overall plan with its newest overhaul is to enter “white space,” or segments where Buick has not traditionally been. He said both the Verano and Encore are great examples of how the brand is entering new segments and attempting to grow in the U.S.

Analysts said Buick will have to enter into different segments if it wants to grow in the U.S., but for now, China should be enough for Buick to survive in the short-term.

“It seems like it is finding more of its natural rhythm in the U.S. … better than it was through 2008-2009.” But eventually times change and people that are young today won’t necessarily see it as an old person’s car as time goes on.”

Caldwell said Buick can definitely “be one of those reborn brands” especially if it is competiting on a global level.

“It definitely has room for improvement, but it is probably in a much better place than anyone expected in to be in 2009,” she said.

Buick could continue to improve if it keeps getting buyers like Miller, who said she recommends the Verano Turbo to her friends and colleagues.

“I’ve been singing its praises since I got it,” she said. “I would encourage anyone, if they’re looking for a sedan, (to consider it).”

Information in this article was compiled through interviews, research and "The Buick: A Complete History" written by Terry B. Dunham and Lawrence R. Gustin.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

How has Buick survived 110 years?

Sat, 18 May 2013 13:30:55 UTC

Surviving isn’t anything new for Buick, which celebrates its 110th anniversary Sunday. The brand -- founded on May 19, 1903 by former plumber David Dunbar Buick -- is the oldest still-active automotive brand in America and one of the oldest in the world.

DETROIT- Five years ago, many doubted Buick would still exist today.

General Motors, the brand’s owner, was going through its largest restructuring in history and many thought Buick was going to be scrapped with the likes of Hummer, SAAB, Saturn and possibly even Pontiac.

Brauer, like many auto industry experts, believed Pontiac was a much more valuable brand than Buick, which was known for having drivers almost as old as the century-old brand itself. Plus, GM already had Cadillac to fill its luxury slot. So why would it want Buick?

In the end, Buick survived GM’s government-backed bankruptcy and Pontiac was cut with the other three now-extinct brands.

But surviving isn’t anything new for Buick, which celebrates its 110th anniversary Sunday. The brand -- founded on May 19, 1903 by former plumber David Dunbar Buick -- is the oldest still-active automotive brand in America and one of the oldest in the world.

Heritage

Buick, founded as the Buick Motor Co. in Detroit, started when people were still referring to automobiles as “horseless carriages” and General Motors co-founder William C. “Billy” Durant was still a Flint carriage company owner.

And although Buick, then the Buick Motor Co., was founded in the Motor City, it arguably wouldn’t be around today without a move to Flint, Mich. in 1903. From 1903-1998, Flint, then known as “Vehicle City” for its vigorous carriage industry, was Buick’s home.

“(Buick) actually spurred the creation of General Motors (in 1908) and the purchase of Oldsmobile, Cadillac and Oakland, which later became Pontiac,” said Greg Wallace, manager and historian of the GM Heritage Center, which stores historical cars and documents. “There’s been a lot of things over the years that have cemented the quality of Buick.”

On its reliability and quality in the 20th century, Buick quickly turned into a brand that mainstream consumers aspired to own and the wealthy respected. That reputation has helped the brand continue to survive, according to officials.

Buick U.S. Vice President of Buick Marketing Tony DiSalle said Buick for decades has been able to position itself at the right level between mainstream and luxury, while continuing to evolve with time.

“It’s had the right to own this space for quite some time, dating back all the way back to the 1950s when it was perceived as the 'doctor’s car',” he said. “Quite frankly, in the luxury space, it differentiates us from the traditional brands that are about membership to an exclusive club.”

Analysts said Buick’s brand equity has helped it through its history, but its reputation in another country saved it from being scrapped during the auto bailout in 2009.

China

Buick’s first sales office in China opened in 1929, but there are photographs of Dr. Sun Yatsen, first provisional president of the Republic of China, riding in a Buick in Shanghai in 1912.

“That’s why Buick is still alive,” Brauer said. “That gave an entire huge country an image of what Buick was … that image stuck even through Buick’s darker times in this country as well and amazingly it has never really slid in China.”

The China Association of Automobile Manufacturers said automakers sold 19.3 million vehicles in China in 2012, nearly 4 million more than the U.S. market.

China spurred GM to sell 895,133 Buick vehicles worldwide in 2012, a 7 percent increase from 2011 and a 55 percent increase from 2002.

“I think that GM is in a very good position with Buick now because they don’t have to be super successful with the brand because of the growth rate in China and the continued affinity within China,” Brauer said.

If Buick, according to Brauer, just offers “competitive, not necessarily best” vehicles in China, it will continue to do well because of its heritage and the country's expected growth.

The importance of China to the brand was highlighted last month, when a new Buick Riviera concept debuted at the Auto Shanghai 2013 auto show.

“Buick is very successful in China and it’s important to do debuts of a concept vehicle there,” DiSalle said. “Buick has a lot of equity over there.”

DiSalle said while China is important to Buick, there remains growth potential in the U.S.

Design renaissance

Buick is at the beginning of its second vehicle lineup overhaul since its near-death experience in 2009.

The first “design renaissance,” as DiSalle puts it, started with the 2008 Enclave full-size crossover SUV, followed by the 2010 LaCrosse full-size sedan, 2011 Regal midsize sedan and 2012 Verano compact sedan.

In 2012, sales were up 76 percent from 2009 to 180,408 sold. While still minuscule compared to its sales in China, DiSalle said Buick should continue to improve domestically with the upcoming next-generation Enclave and 2013 Encore small SUV, which launched in January.

Through April, Buick sales were up 23 percent from the same time a year ago to 64,777 units. The best-selling vehicle domestically this year is the Enclave, topping 20,609 units through April.

However, while sales have increased, the brand’s market share has remained below 2 percent in the U.S. since 2003, according to Edmunds.com. Jessica Caldwell, senior analyst for the auto research website, said Buick’s U.S. market share is hindered by its own positioning in the market place between luxury and mainstream.

“People who buy luxury today, buy on image,” she said. “There really isn’t that discreet luxury buyer."

Caldwell said the brand’s market share could increase over time, but it needs to introduce more products or do more with branding to be universally appealing.

"They're definitely in a better place then they have been, but I think it's hard being between Chevrolet and Cadillac," she said. "But in terms of product, I think this is the best we've seen from them in awhile."

In terms of sales, the '80s were arguably Buick’s heyday, according to analysts. In 1985, production of the Century and Electra spurred Buick’s North American production to top 1 million units.

"Verano is really the conquest leader in the pack, so we'd anticipate Encore to also conquest well for the brand," he told reporters when the Encore launched.

DiSalle said although Buick’s lineup may look a little different from when Buick began more than a century ago, the same founding principles that made the brand successful in its early years still drive it today.

“I think it’s a really exciting time to be in the Buick business right now,” he said. “It’s really taken this combination of a well-positioned brand through history … and continuing to innovate and never really being complacent at all.”

Information in this article was compiled through interviews, research and "The Buick: A Complete History" written by Terry B. Dunham and Lawrence R. Gustin.

Email Michael Wayland: MWayland@mlive.com and follow him on Twitter at twitter.com/MikeWayland

GM stock rises above $33 IPO price for first time in 2 years

Fri, 17 May 2013 19:50:29 UTC

The automaker's stock, which has been on a tear since January, reached $33.58 Friday morning before slipping back to $33.52, up 3.5 percent, around midday. The auto giant sold shares to the public for $33 in a November 2010 IPO, but they hadn't traded above that price since May 4, 2011.

In this photo provided by General Motors, GM CEO Daniel Akerson is interviewed by a remote camera on the floor of the New York Stock Exchange after ringing the opening bell, Thursday, Nov. 18, 2010, in New York. AP File Photo

TOM KRISHER,AP Auto Writer

DETROIT (AP) — Shares of General Motors reached an important milestone on Friday, topping their initial public offering price of $33 for the first time in more than two years.

The rally is good news for the U.S. Treasury, which has been selling off its GM holdings. Taxpayers still own 241.7 million shares, as a result of the government's $49.5 billion bailout of the company in 2008 and 2009.

GM two weeks ago reported strong first-quarter earnings on sales in North America and China. The shares have gained almost 14 percent this year.

Friday's increase was likely due to general market gains and better prospects in Europe, where GM has lost money for more than a dozen years. The European automakers association said Friday that registrations rose last month for the first time in 18 months. European Union sales were up 1.7 percent, but GM sales fell 4.5 percent.