The Oldest Brand in the General Motors Family: The Story of Buick
Buicks used to be sick. So when I heard that the current Buick Regal was being discontinued, I was shocked, astounded, and dumbstruck that Buick was still around? - I don't see a Buick. How are these beige mobiles that are known for not being known making enough money to stay afloat? Is Buick secretly good?
Well, kinda, let me explain. What do you think of when you imagine modern day Buicks? That's the question I'm sure their head of marketing optimistically asked the North American Focus Group only to be met with blank stares. Even though Buick is the oldest brand in the General Motors family, the brand has been keeping it pretty low key for the last 20 years.
They made some great stuff in the past, mostly during the muscle car era, then rides like the Roadmaster and the Corvette killing GNX, but outside of those two, Buick has been pretty stale for as long as I can remember. In the GM family, Buick can be thought of as the middle child, GM's Chevy for economy and performance cars, GMC for its more utilitarian offerings, and Cadillac for the luxury models.
So what's left for Buick? Not a whole lot. Buick currently sells three models in North America, the Enclave, the Encore, and the Envision. Oh, sorry, wait, that one's the Encore. That one's the Envision. The point is, a Buick doesn't really have a brand identity right now, and without that, it's hard to have any brand loyalty.
No one knows what a Buick is, and even Buick will admit that. Buick has run ads where the people and the commercials don't know what a Buick looks like. - Look like the Garcias got a new car. What did they get? - I don't know. (laughs) What the hell?
Buick sales on their home turf have pretty much been in decline since the early 2000s, and recognizable names like the Riviera, Roadmaster, Grand National, and more have been long since discontinued. Nevertheless, when the 2008 market crash came around, GM already had the high ground.
By 2003, China became GM's second-largest market with a lot of credit going to Buick, and the growth didn't stop. Today, Buick sells around 1 million cars a year in China - five times what they managed to sell here in the US. While the US market currently has three models, China has 16, including sedans like the Weilang Pro, IDEO, EVs that get sold with Call of Duty style branding, and even an EV concept.
Even the GLA minivan has been upgraded with a beautiful interior, and seats that look like you could only get them with a first-class British Airways ticket. While all of this may not appeal to the gearhead or even the North American and European markets as a whole, it's clear that Buick is very different in the Chinese market.
And whatever they're doing seems to be working. But I've got a question: if Buick is now focusing on making cars for the Chinese market, what does that mean for Buick here? In 2016, the round trip of Buick was complete as the Buick Envision became GM's first car to be sold in the US, but made in China.
The company that wants to build its automobiles right in the heartland of Michigan is now importing its cars from overseas. Now, the US is no stranger to cars being built cheaply in other countries and then being transported here for sale, but importing all the way from China is a big stretch.
Buick is already building the car in China, and to build another factory in the Americas just to make the same car would cost too much to make sense. Shipping the Envision from China was the only way to get it in North America, and Buick would just barely make a profit as long as no one imposed any tariffs on auto makers.
Wonder where this is going?
WEBVTTKind: captionsLanguage: en(rock music)- Riviera Wildcat GNX.Buicks used to be sick.So when I heard thatthe current Buick Regalwas being discontinued,I was shocked, astounded, and dumbstruckthat Buick was still around?- I don't see a Buick.- How are these beigemobiles that are knownfor not being known, makingenough money to stay afloat?Is Buick secretly good?Well, kinda, let me explain.(upbeat music)What do you think of when youimagine modern day Buicks?That's the question I'msure their head of marketingoptimistically asked theNorth American Focus Grouponly to be met with blank stares.(insect chirping)Even though Buick is the oldest brandin the General Motors family,the brand has beenkeeping it pretty low keyfor the last 20 years.They made some great stuff in the past,mostly during the muscle car era,then rides like the Roadmasterand the Corvette killing GNX,but outside of those two,Buick has been pretty stalefor as long as I can remember.In the GM family,Buick can be thoughtof as the middle child,GM's Chevy for economyand performance cars,GMC for its more utilitarian offerings,and Cadillac for the luxury models.So what's left for Buick?Not a whole lot.Buick currently sells threemodels in North America,the Enclave, the Encore, and the Envision.Oh, sorry, wait, that one's the Encore.That one's the Envision.The point is a Buick doesn't really havea brand identity rightnow, and without that,it's hard to have any brand loyalty.No one knows what a Buick isand even Buick will admit that.Buick has run ads where thepeople and the commercialsdon't know what a Buick looks like.- Look like the Garcias got a new car.- What did they get?- I don't know.- (laughs) What the hell?Buick sales on their home turfhas pretty much been indecline since the early 2000sand recognizable names likethe Riviera, Roadmaster,Grand National, and more havebeen long since discontinued.Nevertheless, when the 2008market crash came around,GM had to cut loose other brandslike Pontiac, Saturn, Hummer,but Buick was consideredworth keeping, why?Well, China's why.(traditional Chinese music)Unlike the North American market,Buick is a hot brand in China.GM regularly sellsaround one million Buicksa year over there.The image of Buick is very differentfrom the drab and blandpicture we get over here.Buicks are not only the stylist choicefor businessmen and women,but it's also a brand thatpulls in younger buyers as well.The average Buick buyerin China is under 35,while the average buyerover here is 59 as of 2015.So why is Buick doingso much better in Chinathan it is here?Well, if we look backat the history of China,Buick has been in thepublic eye for a while.The Chinese revolution of 1911that overthrew the Qin Dynastyand, basically, started modern China,was led by Sun Yat Sen,a patriot, party leader, and Buick owner.The image of Buick becameassociated with political powerand the betterment of a nationand while China is avery patriotic nation,it does sound like a bit ofa stretch to pin the successof Buick on itscentury-old political ties.I mean, that'd be like ussaying a car would sell betterif it was called aWashington or the Hamiltonor a Lincoln or wait,that sounds familiar.Regardless of what history tells usof China and Buick's relationship,the more tangible story starts much later.In 1990, GM partneredwith the Shanghai AutomotiveIndustry Corporationto make vehicles that wereexclusive to the Chinese market.At the time, no otherAmerican manufacturerhad any kind of deal like thisand GM began to tap into a marketthat Ford and Dodge could not.By 1997, SAIC and GM had started an entitywith a 50% investment from each partnerand by 1999, they began selling modelsexclusive to the Chinese market.This is what they startedwith, the Buick GL8.This luxury minivan was built in Shanghaiand designed specificallyfor the Chinese market.It had seating for eight adults,mounted screens, leather seats.This thing is, basically, a limo.In fact, that was the idea.In China, the minivan is the preferred wayof moving groups of adults aroundas opposed to the perceivedopulence of a limoin early 2000s America and, honestly,this sounds way more practicalthan a stretched Hummer,so I'm on the board.Buick became GM's home field advantagein a huge economic marketthat other US brandswere struggling to tap into.It wasn't until 2012, thatFord struck a similar dealwith another Chinese company, Chang'an.I'm sorry, I totally butchered that.But by then, GM alreadyhad the high ground.By 2003, China becameGM's second largest marketwith a lot of credit going to Buickand the growth didn't stop.Today, Buick sells around 1million cars a year in China.That's five times what theymanaged to sell here in the USand while the US marketcurrently has three models,China has 16, (pops)sedans like the Weilang Pro, IDEO,EVs that get sold with Callof Duty style branding,and even an EV concept,that I can safely say,is the coolest lookingmodern Buick I've ever seen.Even the GLA minivan has been upgradedwith a beautiful interiorand seats that looklike you could only get themwith a first-class British Airways ticket.While all of this may notappeal to the gear heador even the North American andEuropean markets as a whole,it's clear that Buick is very differentin the Chinese market.And whatever they'redoing seems to be working.But I've got a question.If Buick is now focusingon making cars for the Chinese market,what does that mean for Buick here?(upbeat playful music)In 2016, the round tripof Buick was completeas the Buick Envisionbecame GM's first carto be sold in the US, but made in China.The company that wantsbuild to their automobilesright in the Hartland of Michiganis now importing their cars from overseas.Now, the US is no strangerto cars being built cheapin other countries and thenbeing transported here for sale,but importing all the wayfrom China is a big stretch.But Buick is alreadybuilding the car in Chinaand to build anotherfactory in the Americasjust to make the same car,would cost too much to make sense.So shipping the Envision from Chinawas the only way to getthe car in North Americaand Buick would just barely make a profitas long as no one imposedany tariffs on auto makers.Wonder where this is going?In the summer of 2018, theUS government was embroiledin a trade war with morecountries than I can count,but China was one of them.Now, I'm no econominist, butthe basic gist of it was,"Oh, you're gonna tax me?Okay, well, I'm gonna tax you,"and back and forth likethat and for a while.The result was that imports from Chinawould be taxed as much as 25% more.Buick, who would have hadto pay those extra taxesto import their Envision,submitted for an exemptionin the hopes that beingan American companywould help them skirtthis international issue.It's kinda like when you goover to your friend's houseto watch the game and they start fightingwith their partner right next to you.Asking out loud not to be involvedis just gonna get you involved.Take it from me.The Trump administrationdenied GM's requestfor the exemption then proposed a new tax.In 2019, the Trump administrationthen announced a planfor an added import tax for automakerson cars that were not built in the US.This 25% tariff was intendedto motivate automakersto build factories here in the UScreating jobs and contributingto the national GDP,but in the short term,it meant that anyonebuying their cars in Mexico,Puerto Rico, or Chinawould have to charge the American buyeran average of $4,500 morefor the same product.Now, GM would have to pay the25% tariff on Chinese goodsas well as the 25% taxon imported automobilesif both these measures passed.Luckily for GM, thesetariffs either never wentinto full effect or were reversedby the Biden administration.So if you're looking forwardto new Buick Envision,now you only have to worryabout the chip shortage.♪ Ba-ba-ba-ba-ba-ba-bam ba-bam bam ♪♪ Ba-ba-ba-ba-ba-bam ♪- Okay, I think that ifBuick wants to do wellin the North American market,they should learn fromwhat they did in China.They built and designed carscatered specifically to that market.The GL8 is a staple of Buick in China,but it wouldn't sell nearly as well hereand the car that theydid import, Envision,that's just another crossover SUV,a sea of crossover SUV's.(transition whirring)(bell dings)To do well in the North American market,you've got to build a North American carand I think, I know just the way to do it.We got to bring back the Grand National.(dramatic music)The Buick Grand National was a boxy,bad-ass staple of the '80s,which may very well bethe last cool Buick.It was a turbo V6-powered,blacked out, two-doorthat shared a platformwith the Chevy Monte Carloand, at one time, wasthe fastest car GM made,faster than the Corvette by a lot.GM already has a 360horsepower twin-turbo V6in the Cadillac CT5-V.So let's put that enginein the 300 pound, lighter,Camaro chassis, bam,you got a cool Buick for thefirst time in over 30 years.(rock music)(wheels squeak)And this car doesn't evenneed to be a GM parts bin car.Buick has done cool stuffin the past on their own.In 1970, the Buick GSXfrom the last muscle carsbefore the oil crisis and itmade 510 foot pounds of torque.That was the highest torqueoutput for an American carand the GSX held thatrecord for over 30 years.Buick were the first to havean automatic transmission.They were the first have trash controland they put CRT screens in the carway before West Coast Customs.Buick even invented the conceptof the concept car in 1938.- A dozen yearsof automotive progresstelescoped into one effort.- So while Buick mightnot have the attentionof the American people right now,they have a history ofinnovating, adapting,and making something supercool when you least expect it,like a big yellow car named after a bird.- I'm just working on my old hog hereand you know what I realized?We just hit six million subscribers dudes.One, two, three, four, five, six, six.And just like with every major milestonethat we have here at Donut,we're gonna release a limited edition6 Million Sub Sticker sothat you can show everybodythat you were part of thecrew when we hit this number.This is like one of my favorite designsthat we've done so far.I think it's super sick.It's only available fora very limited time.Go get yours today donutmedia.comand, again, thank you guys so much.This is way bigger than weever thought it could be.We love you all.I love.- So what do you think?Do you want to see Buickmake cool cars for the USor should they focuson the Chinese market?I know the market's changing,so maybe Buick is away for GM to introducesporty EVs or something.Let me know in the commentswhat you think of Buickand if you have a cool Buickstory to tell us, let me know.Follow Donut on allsocial media, @donutmedia.Follow me, @nolanjsykes.Be kind, see you next time.