• Jul 19, 2009

2010 Buick LaCrosse - Click above for high-res image gallery

Now that the new General Motors has been born out of the ashes of what's now Motors Liquidation Corp., management wants to avoid some of its past mistakes. One of those was letting inventory get out of control, requiring huge incentives to move the metal. That necessary evil was needed generate enough revenue to pay the bills every month, something that became impossible to do over the past year. This time around, GM plans to proactively limit production to prevent oversupply.

Traditionally, the goal has been to have a 60-day supply of a car on dealer lots. This level provides a good balance between minimal stock and having enough vehicles to allow customers to find the one they want and make a quick sale. During the launch drive of the 2010 Buick LaCrosse last week, Buick-GMC VP Susan Docherty explained that her plan is to have no more than 75 to 90 days of total supply of any model, and this particular statement has generated some confusion. Bloomberg reports this as 75 to 90 days of dealer inventory, an undesirably high figure.

In fact, after Docherty first stated that number, Motor Trend's Todd Lassa immediately asked her for further clarification. Docherty then explained to a group of journalists, including this blogger, that the 75-to-90-day supply number refers to total supply, including cars on dealer lots plus cars in transit and cars at the factory awaiting shipment. Thus, the actual corresponding dealer inventory number is really 45 to 60 days. Industry publications such as Automotive News typically report only the smaller dealer inventory numbers, not the total supply figure Docherty referred to in her media presentation.



Photos Copyright ©2009 Sam Abuelsamid / Weblogs, Inc.

[Sources: Bloomberg, Buick]


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    • 1 Second Ago
  • 28 Comments
      • 5 Years Ago
      The Buick looks nice. I would take it over a Avalon and comparing to a fully-loaded Camry, the LaCrosse for me is a real good competitor.

      Of course if GM starts dumping them in fleet-sales and kill the residual value that would be my first reason not to choose it.
      • 5 Years Ago
      The base model comes with an I-4 and steelies. Can you say "Fleet queen"?

      Resale values on this will be in the toilet like with all domestics. And they think they can beat Lexus, ha! Maybe a 1988 Lexus, if they're lucky.
        • 5 Years Ago
        """The base model comes with an I-4 and steelies. Can you say "Fleet queen"? """

        I can't understand it either, but some people just need a car to get from point A to point B..
      • 5 Years Ago
      @LoneWolf

      GM already (well, supposedly) has a division already dedicated to "Point A-B" transportation. It's called Chevrolet. Buick is supposed to be entry-level lux, and entry-level lux isn't an I-4* with steelies.

      *German cars are ok with I-4s cause they make some damn good ones, but GM? Remember the Iron Duke? Crap.
        • 5 Years Ago
        2.0L Ecotec, heard of it?
      • 5 Years Ago
      That "75 - 90" isn't referring to number of days' supply. It refers to the typical age of Buick buyers.
        • 5 Years Ago
        Hardy har har har! what an original joke! how on earth did you come up with that one?

        Let me guess.... when hanging out with friends, you're always dropping witty, original lines like "Git 'er done!" and after Austin Powers came out, you were the guy who said "Do I make you horny baby" every chance you got.

        Don't care if the "joke" is true... it stops being funny when everyone posts the same damn joke every time there's a Buick article
        • 5 Years Ago
        Alex, you are so full of your pompous self. You must have woke up on the wrong side of the gutter this morning. Why don't you go for a ride in your Buick, and chill out.
        • 5 Years Ago
        I post it every time there's a Buick article. I'm 62 years old, and wouldn't be caught dead in a Buick (favorite car of the Chinese).

        I firmly believe GM should drop Buick along with GMC. If they want to be successful, they need to get with the business model of one low end brand (Chevy), and one high end brand (Caddy). And, they sure don't need two truck brands.
        • 5 Years Ago
        As I said, favorite car of the Chinese. I see no reason why GM should NOT continue to sell Buicks in China. Just like Opel is a fine global car, the Chinese built versions of the Daiwoo and Holden, branded as Buicks, are perfect for the Asian market.

        Please forgive my ignorance. Alex made me that way.
        • 5 Years Ago
        you're not funny, you're not clever and you're not pointing out something that people didn't already know. so why post it over and over and over?

        PS - You wouldn't be caught dead in a Buick? Who freaking cares? Some of us care more about the car than the badge on the car. And some of us are also secure enough with ourselves to not be bothered if people see us in a crappy/lame car.

        I hope that next time you leave starbucks, you hit a pothole which causes you to spill your mocha latte caramel frapaccino all over your Polo shirt (and it's probably the type with the 10" tall embroidered Polo logo). The icing on the cake would be if some of it splashed onto your Bluetooth headset and ruined it. Now go lay out by the pool so that the next time you look in the mirror you can compliment yourself on how tan you are.

        PS - your wife is sleeping with the pool boy. just thought you should know.
        • 5 Years Ago
        People who believe GM should dump Buick are just showing their total ignorance of the global car market. Buick is outperforming last year's sales by a significant margin, in China.

        Think of it this way... for every Buick sold in Asia, our trade deficit shrinks.

        Fortunately for GM, they aren't nearly as ignorant as you are.

      JDM Life
      • 5 Years Ago
      Man this car is ugly and huge. But its still the best i've seen from Buick anyway.

      Old people are going to love this thats for sure.
        • 5 Years Ago
        @JDM Life
        Seriously, don't even talk about ugly with Honda still around.
      • 5 Years Ago
      Not feeling the massive grille either but I could probably live with it.
      I'm actually more bothered by the chrome rims. I know the design is largely from the Chinese market sedan where you can never have enough chrome, and GM has always loved chrome rims but it's just a bit much for this car.
      • 5 Years Ago
      As the boys on top gear would say "It's just some car". Nothing special, just some car. Considering the competitors, they've got to make something a little more interesting to draw new buyers.
        • 5 Years Ago
        ..just as the BMW -3 series. And it sells well ;)
      • 5 Years Ago
      you're not funny, you're not clever and you're not pointing out something that people didn't already know. so why post it over and over and over?

      PS - You wouldn't be caught dead in a Buick? Who freaking cares? Some of us care more about the car than the badge on the car. And some of us are also secure enough with ourselves to not be bothered if people see us in a crappy/lame car.

      I hope that next time you leave starbucks, you hit a pothole which causes you to spill your mocha latte caramel frapaccino all over your Polo shirt (and it's probably the type with the 10" tall embroidered Polo logo). The icing on the cake would be if some of it splashed onto your Bluetooth headset and ruined it. Now go lay out by the pool so that the next time you look in the mirror you can compliment yourself on how tan you are.
      • 5 Years Ago
      the "New GM" better start making cars again, our Local Pontiac-Buick-GMC Dealer is almost out of inventory!
      • 5 Years Ago
      - "Well in all honesty, NGM will not move this car without at least a 1000 to 1500 dollar rebate in this economy, buyers are looking for bargains, not a low supply."

      To compete against Lexus, BMW and MB - their stated targets - GM will need a solid lease program as this is how most BMWs amd almost half of the Lexi are "sold". This had been a major problem for the CTS - people want it but
      want competitive leasing from the dealer as well.

      As for the "75 - 90 " age dis, a quick look in any city shows that demographic is now owned by Camry, Avalon and ES3xx.
        • 5 Years Ago
        Problem is that it's not possible to compete on leases unless your residuals are strong, otherwise your lease is going to cost twice as much.
        It'll be a long time before Cadillac can even think about competing on a lease those cars, all of which have much better residuals.
      • 5 Years Ago
      The CTS is hardly a flagship "large" car by comparison to the other luxury brands: 7Series, A8, S-Class. The STS (RIP) would be a better comparison. The cars it dimensionally compares to (A6, 5 Series, E Class) are all at the end of a long cycle with new variants a little ways out (except new E Class) So yeah, Cadillac can ride their success for a bit longer in that they still have the newest design in that segment which absolutely helps their residual value.

      The fact that Caddy on the whole doesn't have a complete model line ultimately hurts them. The STS and XLR failures have hurt public perception; the lots are full of Escalades, SRX's, AND CTS's right now. Residuals have as much to do with a brand, as they do one specific vehicle regardless of how successful that one model may be. The SRX looks promising though, but until they have a complete portfolio of cars that clearly succeed in their design and execution, Caddy will not be comparable to the high end lux brands for pricing or residuals.
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