GM axes Buick Regal as shopper demand continues shift to SUVs
The transfer marks a serious shift for Buick, which has historically been recognized for its passenger automobiles for greater than a century. It is the most recent instance of how a lot shopper demand within the U.S. has moved away from passenger automobiles to crossovers and SUVs lately.
GM on Wednesday confirmed it will cease importing all fashions of the Regal, together with a brand new wagon model, nonetheless it declined to provide a selected timeframe. As soon as gone, it should mark the second time for the reason that Regal debuted as a mannequin of the Buick Century in 1973 that the corporate has axed the nameplate within the U.S.
U.S. gross sales of the Regal by way of the third quarter had been down 19.6% to 11,008 automobiles in comparison with the identical time interval in 2018.
Shares of GM had been up roughly 1% Wednesday. The inventory, which has a market worth of about $51 billion, has gained 7.5% for the reason that begin of the 12 months.
“Buick continues to be forward of the buyer shift towards SUVs,” the corporate mentioned in a Wednesday assertion. It added, almost 90% of Buick gross sales to this point this 12 months have been SUVs.
GM mentioned it should proceed to promote the Regal, which was redesigned for the 2018 model-year, in China “the place demand for sedans stays important.”
The present-generation Regals for the U.S. and Canada are being imported from Germany and produced by GM’s former European operations, which the corporate offered to French automaker PSA Group in 2017.
(L-R) Carlos Tavares CEO of PSA Peugeot Citroen, Dr Karl-Thomas Neumann CEO of Opel Group and President of Normal Motors Dan Ammann, shake fingers throughout the 87th Worldwide Motor Present at Palexpo in Geneva, Switzerland, March 7, 2017.
Arnd Wiegmann | Reuters
The Regal is the third automobile nameplate that Buick has reduce from its lineup previously 12 months. It additionally discontinued the Buick LaCrosse sedan and the short-lived Cascada convertible.
To help in filling Buick’s lineup, the corporate beforehand introduced it’s including one other SUV referred to as the Encore GX, which is anticipated to go on sale subsequent spring.