GM looks at luxury car segment to drive margins

29 November 2006

Mumbai: General Motors Corporation may halve the number of its smaller Buick models it offers in the US in a bid to reestablish as a luxury brand in its home market, GM's chief executive Rick Wagner said.

Speaking to reporters at the unveiling of the 2008 Buick Enclave, Wagoner said the automaker would also reduce Buick sales to rental car companies as it shifts toward targeting more profitable retail sales with upcoming new designs.

While the Buick has offered as many as seven models in recent years, Wagoner said GM was prepared for lower unit sales with about just four models and try to capture high-margin showroom sales.

"In the end we're going to let it flow. But what we're going to do is to make sure we make three and then four really good (Buick models)," Wagoner told reporters.

He said while GM has been successful in pushing the Buick in China, it hopes to consolidate into stores that offer its GMC trucks along with Buick and Pontiac models in the US market, where it is struggling to attract younger generation of buyers. "We've had a terrific run in China with Buick," he said.