General Motors’ sale of Opel to France’s PSA Group sparked much debate on what the European division’s loss would mean for Buick, which holds strong product ties with the German manufacturer.
The new Buick Regal, which bowed today in liftback and wagon bodystyles, shares its architecture with Opel’s new-for-2017 Insignia. At the 2018 model’s Detroit-area launch, GM’s executives downplayed the impact on its Buick division, claiming there’s no disruption in sight for the brand.
According to Car and Driver, GM’s vice president of global Buick and GMC, Duncan Aldred, isn’t concerned. “The sale of Opel will have no impact on the fresh new lineup Buick is building out,” he claimed.
GM stands to gain $2.3 billion from the completed sale of Opel, its UK subsidiary Vauxhall, a smattering of assembly plants across several countries, and its main engineering center. GM Financial’s European operations are also part of the deal.
Besides the Regal, which is built in Rüsselsheim, Germany, Buick draws its Cascada convertible directly from the Opel lineup. The Encore, badged as an Opel Mokka in Europe, comes to the U.S. by way of GM Korea, while the Envision sails from a factory in China (where the model first debuted). The LaCrosse sedan and full-size Enclave crossover, of course, are U.S.-built.
The sale comes at a significant time in the life of the Regal, but Mark Reuss, GM’s executive vice president of global product development, purchasing, and supply, said the model isn’t threatened by the sale. (Market direction is another matter.)
“This is very much part of our portfolio plan,” said Mark Reuss. “As we said, Opel and the engineering/production piece of this is very much intact for all of our global platforms. So, you know, no impact.”
While the deal isn’t complete, Reuss claimed that all product-related issues would be solved by the time GM officially hands off its operations to Opel. That would keep Opel-based Buicks flowing to U.S. dealers for the models’ current generation, at least. He wouldn’t say whether GM would pay PSA for development work in the future.
Buick has said in the past that utility vehicles — much like with other automakers — are a big part of its focus. It’s easy to see the Cascada being dropped at the end of this generation, leaving the Regal as the only major question mark. Still, the two automakers aren’t parting completely.
In a continent rapidly adopting new laws limiting the use of gasoline and diesel-powered vehicles, PSA needs electric vehicle technology. It had its eye on Chevrolet’s Bolt, sold in Europe as the Opel Ampera-e. Part of the deal between the two companies includes a collaboration on electrification projects designed to give both companies an edge in the expanding segment.
[Image: Opel]
It’s easy to see the Cascada being dropped at the end of this generation…
But then what will former Sebring/200 Convertible owners buy new and what will high school kids who can afford a used Mustang convertible drive?
Eos?
GM’s responses to the Buick question set off my BS detector several times.
I wouldn’t expect them to publicly wring their hands.
Of course GM is not worried about Buick’s future. Because nobody is buying Buick’s cars, they are buying their CUVs. Which are minimally affected by the Opel sale.
When need Tim here to break down the stats (because I’m too lazy to do so myself right now nor do I get paid for it).
And the future of Buick (like for others) is electrification (or partial electrification).
Waiting for the new Buick Aurora!
It’s a shame. That new face (Insignia/Regal) is SO much prettier than our new Malibu and Cruze. The design language looks far less like it was squished.
I hope Chevy and Ford both find better directions for their styling on their sedans. I was never a huge fan of the Aston grille on Ford cars, although it does look decent on the Fusion (especially when compared to Malibu, Altima and Camry). The Impala looks classy, but to me, the look just didn’t translate well to their smaller cars.
“GM Executives Aren’t Worried About………. ( insert your GM mismanagement or bean counter de-engineered product debacle here”).
True, I bet they weren’t worried about “Those little import cars” in 1970 either.
There’s a great scene from Mad Men, where the guys at the ad agency end up with a dilemma – they’ve got two interested car makers (in about 1965) who want to contract for ads. But they can only pick one. One brand is Honda, and the other is Alfa Romeo.
They choose Alfa.
Mr Willems: your sentence “GM stands to gain $2.3 billion” doesn’t do justice to the truth about the deal. Adjust the widely-reported $2.3 number for real warrant value, cash to PSA for actives pensions, and GM still holding $6.5bil of Europe pension on top, you see GM is actually paying to get out of Europe.
Still a great deal for GM, but does TTAC want to be guilty of parroting the party line on the numbers?
As far as Buick: the more VentiPorts, the better IMHO
We’re not worried about Buick’s future [because we already know it doesn’t have one in USDM].
make buick china only and bring back pontiac.
make the lacrosse or lucerne into bonnevilles, le mans, or whatever. and yes- sell twice as many camaros by making half into firebirds! hell, bring back the solstice, too.
GM will just source the next Buicks from China and the US. Not hard to figure out. They have plenty of engineering resources around the world. Maybe those Holden engineers will be given something to do.
Why worry, who needs engineering?
Trains. Trains need engineering. It’s a good thing General Motors doesn’t make trains.
They don’t anymore, but for many years they were the industry leader with their Electro-Motive division.
https://en.wikipedia.org/wiki/Electro-Motive_Diesel
GE has taken over their spot now.
“… so you know, no impact.”
Interesting choice of words from an exec who likes to tout his car enthusiast credentials. You know, he rebuilt an old Corvette in his garage, and wrote about it in Autoweek years ago. That is truly impressive (although if I had his income and money–dad was a GM VP too–I’m sure I could do same).
What is less impressive, is what GM doesn’t offer today: a useful, relatively fuel-efficient fun car. Like the VW GTI, or Subaru WRX, or Toyota/Subaru sport coupe. Where’s my car, Mr. Reuss? Ironically, the old GM DID offer a Cobalt SS, which was a blast to drive. I even bought one :)
So, when I read “don’t worry about our Buicks”, at the same time that the most fun Buick, the Regal, is a rebadged Opel, it makes me think of GM’s track record in small cars.
Acclaimed small cars designed in the US: I can’t think of any since the brilliant and also maligned Corvair (the fact thousands still exist attests the cars innate brilliance).
Perhaps gas will always be cheap and the lack of GOOD small cars won’t be an issue. I don’t really believe that.
Opel makes good cars, smalls ones too. GM doesn’t do good small cars.
The Cruze is good.
Of course they aren’t worried about Buick: for every member of the blue-haired crowd that kicks the bucket, someone else replaces them. Just like death and taxes, there will always be old people and they will want something to drive, however slowly.
I’m worried about Buick, which is why I won’t buy one even though the TourX is a great looking car (except for the #^$!#*@ plastic cladding). Ford’s getting my money for an oddball C-Max.
Buick is synonymous with China already now, so no doubt it’ll become GM’s “Crap Made In China” brand for the next generation of vehicles, even in the US – that is, if anyone outside of China still cares about Buick at that point at all…
How Buick survived bankruptcy is still mindboggling to me.
And it still looks like a Saturn, except now they look like ten year old Saturns.