Buick’s Encore Shows a Strong Performance for General Motors

JUSTIN LLOYD-MILLER

It’s common knowledge that small crossover SUVs have been a hit in the American market, as they offer a fair degree of practicality with decent fuel economy and more agile handling than larger, more conventional utility vehicles. General Motors (NYSE:GM) is finding this out first hand, with the Buick Encore.

In its first full-year on the market, the Encore moved 31,046 in the U.S. alone, and 97,311 worldwide, not including models labeled under GM’s Vauxhall and Opel international brands. ”Right out of the gate,demand for the Encore was high,” said Tony DiSalle, who is the vice president of Buick marketing, in GM’s statement. “It accounted for most of the segment’s growth last year, and that’s because it offers the right safety, technology, and features in the right-sized vehicle for many customers.”

The Buick brand fell on the sidelines for General Motors, but has since made a resurgence amid renewed focus from its parent company after GM shut down its Hummer, Pontiac, Saab, and Saturn divisions to focus on its core set of brands.

“The small SUV segment looks like the next hot spot in the new-car market,” said Karl Brauer, senior analyst for Kelley Blue Book. “The combination of functionality and fuel efficiency offered by models like the Buick Encore makes them a compelling value equation for consumers. We’re seeing rising research activity in these models from users of KBB.com, and we expect sales to grow in the coming months and years.”

Buick has been especially popular in China, and has been a constant sweet spot for GM’s performance in the region. Buick’s sort of soft-luxury — it’s more affordable than flagship brands like Cadillac, and not as well appointed, but more comfortable and plush than the entry-level Chevrolet or Opel brands.

GM noted that the segment that the Encore is playing in is expected to double in sales between now and 2018, making GM’s early entry into the segment especially crucial.

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Buick’s “Get Off The Phone” Ad Has Comedy Duo Rhett & Link Urging People To Get #InTheMoment

Dec 13, 2013 at 4:32pm ET by Amy Gesenhues

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Buick’s latest advertising campaign is replacing automobile pitches with a public service announcement, encouraging everyone to pay more attention to what is going on around them. The campaign is being promoted on Buick’s “Get in the Moment” Tumblr blog, featuring the music video “Get Off the Phone” by comedy duo Rhett & Link.

While the comedy pair are filmed driving in a Buick Regal, along with the car in the background during some scenes, the video focuses on the song’s lyrics, a commentary on all the moments we miss in lieu of our obsession with smartphones.

Poking fun at everyone from teens staring at their phones, to moms ignoring their babies and foodies Instagramming their desserts, the song’s chorus includes the lyrics, “Get off the phone now, it’s going to be okay, there’s no need to be afraid. It doesn’t love you, it’s going to die one day, the government’s probably spying on you with it anyway.”

The video has  accumulated over 878,000 views since it was posted on Rhett & Link’s YouTubechannel December 3, with Unruly’s viral video chart showing it earning more than 26,000 shares. According to a report on Adweek, marketing agency DigitasLBi worked on the #InTheMoment campaign with Buick and helped broker a partnership between the automobile company and Rhett and Link.

Buick’s #InTheMoment Tumblr blog reads, “We all get lost in our smartphones. But imagine what you’ll find if you put the phone down for a minute. For a meal. For a conversation. For a road trip. Look up, live life, and join us in the moment.”

But first, watch check out the video:

Buick’s “Get Off The Phone” Ad Has Comedy Duo Rhett & Link Urging People To Get #InTheMoment Dec 13, 2013 at 4:32pm ET by Amy Gesenhues Tweet Buick Get off the phone screen captureBuick’s latest advertising campaign is replacing automobile pitches with a public service announcement, encouraging everyone to pay more attention to what is going on around them. The campaign is being promoted on Buick’s “Get in the Moment” Tumblr blog, featuring the music video “Get Off the Phone” by comedy duo Rhett & Link. While the comedy pair are filmed driving in a Buick Regal, along with the car in the background during some scenes, the video focuses on the song’s lyrics, a commentary on all the moments we miss in lieu of our obsession with smartphones. Poking fun at everyone from teens staring at their phones, to moms ignoring their babies and foodies Instagramming their desserts, the song’s chorus includes the lyrics, “Get off the phone now, it’s going to be okay, there’s no need to be afraid. It doesn’t love you, it’s going to die one day, the government’s probably spying on you with it anyway.” The video has accumulated over 878,000 views since it was posted on Rhett & Link’s YouTube channel December 3, with Unruly’s viral video chart showing it earning more than 26,000 shares. According to a report on Adweek, marketing agency DigitasLBi worked on the #InTheMoment campaign with Buick and helped broker a partnership between the automobile company and Rhett and Link. Buick’s #InTheMoment Tumblr blog reads, “We all get lost in our smartphones. But imagine what you’ll find if you put the phone down for a minute. For a meal. For a conversation. For a road trip. Look up, live life, and join us in the moment.” But first, watch check out the video: Related Entrie

General Motors’ New Roads Are Paved with Incentives

COLLEEN CASEY | MORE ARTICLES

OCTOBER 20, 2013

General Motors Company (NYSE: GM) wants customers to “open the possibilities” their new credit card offers while flashing brand loyalty every time they use their plastic purchasing power. The card, advertised on their website, offers 5 percent earnings on the first $5,000 of purchases, and 2 percent thereafter.

There is no cap on earnings, and no limit on what portion of the earnings can be applied to a new GM vehicle, and they do no expire. No annual fee is associated with the card. GM is offering the card throughCapital One Financial Corp. (NYSE: COF).

The previous Capital One card and points scheme was described by Automotive News. Four million people use the older card, their points expire, and earnings cannot surpass $500. That card is now closed, and only current customers can continue under its rewards program. Alternatively, they can apply for the new version.

In a press release by GM and Capital One, Bill Cilluffo, Executive Vice President, Card Partnerships at Capital One explained the impetus behind the new card. “Consumers told us they wanted a straightforward way to earn greater benefits than their current auto rewards card. Together, in partnership with General Motors, we have set a new standard in this category, and are providing a better solution for consumers to plan for and save toward their next new Chevrolet, Buick, GMC, or Cadillac vehicle.”

The card follows last week’s announcement by GM that the company had improved upon its Military Discount Program, by increasing price reductions available and adding incentives. Edmunds.com reports that the company also recently expanded its employee pricing program, which now includes extended family members.

What the card, and other incentives represent, is a push to move new GM models. Also in the press release was this statement by GM’s General Manager for Retail Sales and Marketing Support, Chuck Thompson: “We are introducing 27 new or refreshed cars, trucks and SUVs in 2013 and 2014 — an average of one per month – and the new GM Card is the key for customers to put one in their driveways.”

Buick Turns Pinterest Board Into Car Concept

http://mashable.com/2013/03/28/buick-pinterest-car-concept/

Buick has put a social-network spin on its 2013 Encore luxury car by designing its interiors and exteriors based on a Pinterest board.

Following a call from nine influential design, fashion and food bloggers to create Pinterest boards speaking to their personal style and passions, the company unveiled the winning pinner on Wednesday night at the New York Auto Show. The "Pinterest to Dashboard" contest is a part of an effort to connect with a younger audience and show a different, more playful side of the brand.

The top collection came from a Pennsylvania-based bed and breakfast owner Michael Wurm Jr.— who has nearly four million followers on Pinterest. His boards, which featured sea foam-colored tones and beach scenes, were picked as the inspiration for new color palates, textures and design features in the existing car.

Wurm was flown out to Buick's Detroit design center, where he was presented with three different concepts, one from each of the three-person design team. He ultimately chose the design highlighted below as his favorite. "I have a totally different perspective of Buick now," he said.

From a design perspective, the team said they fell in love with Wurm's theme of going outdoors and used it as a jumping point.

"We pulled key elements from his boards that we thought were interesting," said Ven Lei, Buick color and trim designer. "The three of us came up with our own interpretations of the boards, and expanded on it based on mood, a theme and an environment. We used created color waves and textures such as woods, and ultimately wanted to show how something fun like this could be applied to what is already on the road today."

Lei said the brand has already received a "tremendous outpouring of input" from the Pinterest community. "It's been invaluable," she said.

Although the car won't be available on the market, the company said it would be open to rolling out the look in the future.

 

"Nothing you see is actually available, but if we got enough feedback either way, I'm sure our designers would go back and take a look at it," a Buick representative said at the event.

With about 71% of Pinterest's nearly 25 million users under the age of 45 — and 50% are 25-44 — Buick said it views the user base as an important market for the new Encore model. Not to mention, according to a Bizrate Insights study, about 70% of Pinterest users say they use the site to get shopping inspiration and 43% associate it with brands.

The company has also been promoting the "Pinboard to Dashboard" program across Pinterest, Facebook, Twitter and Instagram.

Buick Encore Hide and Seek Mobile App Game

Hide & Seek ENG from saschaengel_china works on Vimeo.

General Motors Company (GM): This Automaker Will Win During China’s Luxury Boom

Published in Motley Fool on March 10, 2013

 

Money, money, money! That's what every investor wants! And it's what every automaker wants more of, too. Money is exactly why we've seen an explosion of brands in the luxury segment.

 

There are plenty of reasons companies are flocking to high-end vehicles. They're an easy way for automakers to differentiate themselves from their entry-level vehicles and increase market share. Sales of luxury vehicles are more consistent during the up and down swings of the economy, since wealthier consumers can consistently afford to make larger purchases. And, of course, there are the higher transaction prices and juicy margins.

 

In anticipation of a recovery in the U.S. economy, the luxury segment has exploded with new competitors. There are 27 luxury-segment models priced between $25,000 and $35,000, according to Edmunds. And as the U.S. market continues to mature, automakers will be looking to emerging markets for further growth. Believe it or not, China's luxury market is about to surpass the U.S. for the largest in the world, giving a catalyst to the companies best prepared to meet the demand.

 

Let's look at how lucrative this market can be and why I think General Motors Company (NYSE:GM) is best prepared to profit from China's luxury boom.

 

By the numbers 

By 2016, China is expected to overtake the United States for the world's largest luxury-vehicle market. It's estimated to be selling more than 2.3 million high-end vehicles by that time. Its luxury market has increased by 36% annually over the past decade, according to China Daily. That's impressive growth, compared with the 26% annual growth for the overall market.

 

Look at it this way. In 2002, the Chinese luxury market sold 57,000 vehicles, making it the world's 14th largest market. Ten years later it accounted for 1.24 million vehicles sold, bringing it up to the No. 2 spot. If you compare the U.S. market over the same period, we've grown from 1.67 million to 1.7 million. It's clear that while there's not tremendous growth at home, the number of luxury consumers in China is increasing rapidly and isn't projected to slow down anytime soon.

 

Lincoln can't cut it 

Before I get to why General Motors Company (NYSE:GM) is capable of cashing in on China's luxury market, I'll explain why Ford Motor Company (NYSE:F) and other rivals won't get it done. Lincoln hasn't been relevant since the mid-'90s, when the Navigator was the top seller. In fact, last year the Mustang was responsible for more sales than the entire Lincoln brand. The redesigned Escape more than doubled it.

 

Ford has mostly left its luxury line alone because the recession highlighted more glaring issues to address first. Now that Ford has paid down its debt and is producing a higher-quality vehicle, it can focus on reviving up its luxury brands. But if it can manage to bring Lincoln back to relevance, it will have to happen here in the U.S. first, and we're a long way from seeing that happen. We're even further from seeing that happen in China, where Ford still has a lot of ground to catch up.

 

Lexus sinks itself 

Japanese automakers saw their sales plummet after a September territorial dispute with China. The dust-up initially fueled anti-Japanese protests and dropped Toyota Motor Corporation (ADR) (NYSE:TM) and Honda Motor Co Ltd (ADR) vehicle sales almost in half. Seven months later, the automakers have yet to fully recover. They probably will by the end of 2013, but Toyota's struggles in China will remain.

 

Toyota's Lexus brand is popular in the U.S. but has had difficulty gaining traction in China. In the global picture, Toyota outsold all companies worldwide last year -- yet it trailed General Motors Company (NYSE:GM), Volkswagen, Nissan and even Hyundai in China. Toyota, much like Ford, has a lot of ground to make up before it can take full advantage of China's luxury boom.

 

GM for the win 

With Ford and Toyota out of China's luxury picture, the door is wide open for General Motors to take a huge chunk of the profits. Its one true rival will be Volkswagen, whose Audi brand has been a hit with the Chinese. But it helps that GM is already the top-selling automaker in China and recently announced that its sales there for January and February climbed 7.9%. It already has joint ventures if it wishes to try that route into the expanding luxury market. If not, it already sells the Cadillac brand in China.

 

Another thing that bodes well for General Motors Company (NYSE:GM)'s future success is its new marketing campaign. The "Find New Roads" push will replace its predecessor, which didn't translate well internationally. The new campaign showcases a higher-quality vehicle, and its first commercial has been well received.

 

Bottom line 

Early in the year, GM watched its Cadillac sales decline in China, I fully expect this trend to reverse. I think GM will continue its success in China and expand through its premium brand. Within a couple of years, we should see the effects of China's luxury boom on GM's bottom line. As an automotive investor, I'll be watching GM very closely.

General Motors Sells 215,070 Vehicles In China In February 2013

 

Published in GM Authority on Mar 6, 2013

General Motors and its joint venture partners sold 215,070 vehicles in China in February 2013, representing a 10.6 percent decrease from February of 2012. The automaker was quick to point out that the decline was due to the week-long Lunar New Year holiday that fell in February this year.

On an operating unit basis, the sales results are as follows:

• Shanghai GM, The General’s main operation in China selling Chevrolet, Buick, and Cadillac vehicles, saw sales slip 2.0 percent on an annual basis to 101,023 units
• SAIC-GM-Wuling sales were down 15.4 percent annually to 110,193 units
• Sales of FAW-GM were down 48.1 percent to 3,670 units

Buick

Buick sales were down 0.8 percent year-over-year to 52,340 units. The original Excelle remained the brand’s best-seller with 14,601 units. The Excelle XT and GT closely followed, increasing 20.2 percent to 14,294 units.

Chevrolet

Chevrolet sales were down 11.5 percent year-over-year to 46,388 units. The Sail remained Chevy’s most popular model, up 22 percent to 17,304 units. What’s more, sales of the new Malibu sedan more than doubled (up 108.2 percent) to 6,939 units.

Cadillac

Cadillac sales set a February record of 2,295 sales — an 8.1 percent year-over-year increase. Unsurprisingly, the SRX remained the most popular model that accounted for nearly all of the brand’s sales (2,086) in the country; that represents an increase of 36.6 percent year-over-year.

Wuling

Sales of Wuling vans and LCVs dropped 11.7 percent year-over-year. The Hong Guang set a new February sales record of 32,048 sales, a 29.8 percent year-over-year growth.

Baojun

Sales of Baojun vehicles dropped 24.5 percent to 6,055 units.

The GM Authority Take

A week-long holiday! We’d like in on that action… so can someone invite us come 2014?

All kidding aside, the decrease in February sales shouldn’t be that much of a concern for The General, since it set an all-new monthly sales record in China in January.

In fact, combined sales result for January and February of 2013 saw GM and its partners selling 525,835 units — a 7.9 precent increase compared to the same time period in 2012. For its part, Shanghai GM sold 255,243 units in China in January and February, a 12.4 percent year-over-year increase, while SAIC-GM-Wuling sold 262,012 units, a 4.7 percent increase. Both results represent record-setting sales results.

FAW-GM seems to be the odd man company out, selling 8,160 vehicles in China — a decrease of 14.1 percent from the same time period in 2012.

Buick Plays Hide & Seek in China

By myNewsDesk Oct 05, 2012 09:47 CEST

Hide & Seek - The new app from Shanghai General Motors, invites grown ups to play hide-and-seek in a revolutionary way. The adrenaline rush isn't the only thrill of the game - players also get a chance to win Buick's luxury crossover, Encore.

Monterosa and Ogilvy Shanghai are the agencies behind the concept and campaign that immediately has become one of the most downloaded apps in China. 

Anders Fardigh, Creative Director at Monterosa, says "Hide-and-Seek has always been a thrilling game for kids all over the world.  We added a car brand and the latest mobile features to the equation - and everyone wants to participate - all over China." The mobile game runs in the 16 biggest Chinese cities over 10 weeks. Players use their smartphones with Augmented Reality to find hidden cars in the streets. The ultimate mission is to find new hiding places for the found cars and making it difficult for others to discover them.

"The game, which is targeting China's 80s generation has shown some great initial results, with download numbers already in the hundred of thousands range after only 1 week of game play", says Sascha Engel, National Director, Ogilvy Digital Labs

One winner in each city - the one who hides the car for the longest time - will get a brand new Buick car to drive for the coming 2 years.

The App has already received massive attention in different media. Check out the links below to find out more: http://www.psfk.com/2012/09/buick-ar-cars-hide-and-seek.html
http://vimeo.com/49539651

Carl Norberg, MD at Monterosa, says "Mobile is quickly becoming the ultimate relationship tool and one of the most important media channels for brands to connect and engage with consumers in the US as well as in China. The consumer wants - and deserves - irresistibly intoxicating solutions and Monterosa’s mission is to deliver exactly that!“

Download the app at: http://itunes.apple.com/app/encore-quan-cheng-da-sou-cang/id558659190?mt=8