Franchise News

GM to Import Chinese Made Buick SUV to the U.S., Adds a Third SUV to Buick's U.S. Lineup

Nov 14, 2015 12:18 AM EST | By Jean-Claude Arnobit

General Motors Co., (GM) is planning to start selling the Buick Envision, a mid-sized sports utility vehicle (SUV), made in Shandong province, people familiar with the plan told The Wall Street Journal.

The plan would add a third SUV to Buick's U.S. lineup at a time when crossovers are among the best selling vehicles in the market.

The Wall Street Journal adds that the move would make GM the first major automaker to start selling Chinese-made vehicles in the U.S.

The company is expecting to import a modest number of vehicles a year, between 30,000 and 40,000.

The move, though, shows the beginning of a strategic production shift for GM, according to The Wall Street Journal.

It is also a bold move that other automakers, who have said that they are considering doing such a move, will follow closely.

The Wall Street Journal adds that global automakers have been slow to shift using Chinese-made vehicles in the U.S. and Europe.

They fear that Western buyers would ignore these vehicles due to quality concerns.

Volvo Car Corp., though, challenged the assumption when it started shipping sedans coming from plants in China to the U.S., according to The Wall Street Journal.

Volvo is owned by China's Zhejiang Geely Holdings Group Co.

USA Today said that the Buick Envision will fill a key hole in Buick brand's U.S. lineup.

Buick currently sells in the U.S. the Enclave crossover and the Encore subcompact crossover.

The Wall Street Journal adds that adding Buick Envision will allow the brand to take on other premium auto brands, such as Honda Motor Co.'s Acura or Ford Motor Company's Lincoln.

The presence of GM's Buick brand has declined in the U.S. because of a decrease in its market share as Chevrolet took center stage as the mass-market brand.

The Wall Street Journal adds, though, that Buick has recovered in the U.S. in recent years due to more attractive models.

The brand also benefited from a near-record pace for light-vehicle demand.

USA Today adds that Buick has been one of GM's fastest growing brands in the U.S. and is the most well-known brand in China.

The growth of the brand is credited to small and midsize SUVs and crossovers.

© 2024 Franchise Herald. All rights reserved.

Franchise News

Real Time Analytics