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The Chinese experiment | 2017 Buick Envision First Drive

The 2017 Buick Envision is a very good five-passenger crossover. The "but" you should anticipate will come in good time. First it's worth understanding why it exists at all. Out of the ashes of GM's bankruptcy a few flowers blossomed and the carmaker is doing exceptionally well, certainly far better than Chrysler has done in the wake of its free fall into Chapter 11. But of all the surprises at GM's turnaround, Buick surely ranks highest, without question the least likely player to thrive if you only study the North American market. Look farther than our shores, to China, however, and you won't be shocked. Note that the Envision, which has been on sale in China for a year and a half, will reach about 200,000 units this year; the entire Buick portfolio in the US only totaled 223,000 cars in 2015. Not only is China Buick's primary market, but what it makes there, like the Envision, is intended for a different sort of buyer. Here, we'd call it a compact crossover. In China the Envision is a relatively large car, and the buyer there is far more likely to use it as a tall limo, or at the very least, as a big-time status statement. That buyer is also very likely to be in his or her mid-30s – the average Buick buyer in the US is getting younger, but, at 58, is hardly a millennial. Still, Americans who buy the Envision will benefit from all of this China focus. Huge effort went into its development since the target competitor in China is the Audi Q5, according to Rick Spina, Executive Chief Engineer for the Envision. Spina explained that Buick went to the trouble and expense of isolating the entire chassis from engine, suspension, and driveline vibration and sound penetration. "If you look at non-luxury models like Ford Escape, Honda CR-V, nothing's isolated, everything is hard-bolted to the body, and so all that vibration goes into the frame." Spina says that even though you'd guess the China-built Envision shares the general parts bin of the Chevy Cruze and Equinox, it's almost entirely unique. "It's kind of an orphan," he says, because GM couldn't afford to invest in the ride tuning Buick had to have to compete with Audi in China for a volume Chevy product, so nothing from Chevy (for now) is on this platform. And although it would have made sense to have Cadillac or GMC share it, Cadillac's XT5 and GMC's Acadia were already on a different development cycle. Besides, he's pretty proud that the Envision was developed strictly for Buick.

Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

GM to offer U.S. Buick dealers buyouts

General Motors Co said Friday it will offer all of its estimated 2,000 U.S. Buick franchise dealers buyouts as it moves to make the brand all-electric by 2030 in the United States. The Wall Street Journal reported the news earlier, quoting Global Buick chief Duncan Aldred who is set to discuss the plans with dealers Friday in a virtual meeting. He noted shifting to EVs will require significant investments by Buick dealers. "So if they want to exit the Buick franchise, then we will give them monetary assistance to do so," Aldred told the newspaper. Buick said in June it plans to introduce its first EV in 2024, but did not provide specifics. "The future dealer requirements are a logical and necessary next step on our path towards electrification to ensure our dealers are prepared to properly sell and service these unique vehicles," a GM spokeswoman told Reuters Friday. Last year, GM's Cadillac brand said it had thinned its dealer network as it shifts to EVs, saying it has nearly 40% fewer U.S. dealers than in 2018. GM booked a total of $274 million in costs during 2020 and 2021 related to the effort to buy out Cadillac dealers who were not prepared to invest $200,000 to $500,000 per store in the equipment and training to support the brand's shift to an all-electric vehicle lineup, planned by 2030. Buick traces its roots back nearly 120 years — five years before GM's 1908 founding — to an era when electric cars briefly outsold gasoline models in the United States. All Buicks sold back then were gasoline-powered. Future Buick electric vehicles in the United States and China will carry the Electra name, which dates back more than 60 years, along with an alphanumeric designator. (Reporting by David Shepardson) Related video: