NAIAS Report: General Motors - Buick and Cadillac

Automotive Playbook was invited by General Motors to be their guest at the 2010 North American International Auto Show this past week in Detroit. It was an incredible opportunity and an exhilarating experience. Although a guest of GM, I had more than enough of a chance to attend the rest of the show and examine what the other major manufacturers, sans Nissan/Infiniti and Porsche, had on offer, as well.

My take on what Ford and Chrysler, the Germans, Koreans, Japanese, and the more minor players showed and announced will be coming soon. GM, however, gets the first set of analysis.

At this year's show, GM was down to displaying 4 "core brands" - Buick, Cadillac, Chevrolet, and GMC - as opposed to the eight they had last year. It was extremely important that GM put its best foot forward, as it had a terrible 2009 involving a bailout, a bankruptcy, and big managerial shakeups. Because of my lack of concision, the Chevy and GMC perspective will be up in about 3 days. For now, here's Buick and Cadillac:

Buick is seen these days as the "wild card" brand. Few in the industry seem to understand why GM kept it, and what it stands for anymore. Fewer still see how the brand can overcome the old person's car image that has been associated with the brand for a couple of decades now.

It is clear, however, that the people at the helm of the Buick brand know exactly what they're up against. Craig Bierley, the Marketing Director for Buick confidently spoke of Buick's current and upcoming line of new products that he's convinced will sweep away the negative connotations the marque has carried. The Buick display itself certainly helped. With unpolished wood veneers, soothing beige tones, and soft, indirect lighting, the stand came off as modern, upscale, elegant, and comfortable. The Buick stand was easily the nicest place to be of all GM's NAIAS displays. And it perfectly encapsulated the image Buick wants the buying public to have in their minds about the brand.

Bierley and many others at GM mentioned that the transformation of the Buick brand really began with the launch of the 2008 Buick Enclave full-size crossover. According to Susan Docherty, GM's VP of sales, service, and marketing, 50% of Enclave's sales have been to buyers that are totally new to the GM family. Many of them are trading in imports like the Acura MDX. So it's a huge step forward that Acura buyers are now beginning to consider Buick.

But Buick didn't stop there. This last summer, the last-generation LaCrosse, which rode a platform that debuted in 1988, was replaced by a new LaCrosse, pictured above. The 2010 model features much more dynamic styling that brings back Buick's classic rear fender "sweepspear" or "bounce line". The dramatically-styled new car has been well-received by auto journalists. The LaCrosse even won Edmunds.com's comparison test against its nearest competitor, the Lexus ES350.

It's also successful in wooing younger, more affluent buyers to the Buick brand. In fact, the 2010 LaCrosse's first customer was a 33 year-old from Wisconsin, who traded in his Acura TL for the Buick. On top of that, one third of LaCrosse's sales have been to customers that are new to GM, while a third have also been under the age of 55. These are very encouraging signs for the brand.

So Buick has taken this encouragement and has gone a step further to re-establish its relevance to modern premium car buyers. The new 2011 Regal, which resurrects a name Buick hasn't used since 2004, is based on GM Europe's Opel/Vauxhall Insignia. It's a midsize sedan that's smaller than the LaCrosse and will come with Buick's first manual transmission option since 1989. It'll also be a 4-cylinder engine-only lineup, featuring a 2.4L inline-4 standard, with a 2.0L turbo optional. Buick is calling the Regal their "sport sedan", two words that haven't been associated with anything wearing the trishield badge in quite awhile. This car is set to go on sale in April 2010, and GM hopes its dashing good looks and aggressively low price will steal sales away from the Acura TSX and Audi A4. It's certainly good enough, as the European version won the 2009 European Car of the Year Award.

But Buick decided to drive the point home even further in Detroit last week, with its introduction of the Regal GS Concept. This car comes with an even more powerful (255bhp), torquey (295lb-ft) 2.0L turbocharged 4, performance-tuned all-wheel-drive borrowed from Saab, Recaro racing seats, huge Brembo brakes, polished aluminum wheels, dual exhausts, and, yes, a clutch pedal through which six forward gears will be rowed manually. If Buick decides to build it - and they absolutely should - the car should make quick work of whatever bench-seats-and-whitewall-tires image remains associated with the Buick moniker.

When asked why the Regal GS gets a 2.0L turbo 4 instead of the European Insignia VXR's 2.8 turbo V6, Regal Vehicle Line Executive Jim Federico said that the V6 would have needed detuning in order to pass strict Federal emissions standards. Its additional weight would have affected the handling, as well. Federico, who engineered the car while he was in Europe, mentioned that the car was designed around the turbo 2.0 four. Cracking a wry smile, however, he offered the news that the Regals's engine bay could easily hold a V8. When asked if the Sports Tourer (aka wagon) version of the car would make it to the states, Federico gave a "wait and see" answer.

At the LA Auto Show, Buick announced that they are working on a new compact sedan to slot in price under the Regal. It'll be designed to go after the emergent "small premium" segment of the American market, where the Audi A3, BMW 1-Series, and Mini Cooper currently reside. Federico also said that, if the Regal comes with a manual transmission, the new, smaller Buick will, too. And Craig Bierley even confirmed that a new, small Buick crossover is coming, as well.

While many people are confused about where GM is taking the Buick brand, one look at the level of excitement Buick's people have for the future of the brand makes it clear. Buick wants its relevance back. And it's getting there by offering cars with flowing "brush stroke" lines that recall, in very modern, pleasing ways, the styling cues of past Buicks, tastefully rendered design details, and satisfying driving experiences. Buick is also focusing on interiors that push the envelope of technology, modernity, and comfort while expressing high levels of attention to detail and craftsmanship.

Buick's biggest leap back toward relevance will be in offering vehicles with excellent performance, road feel, ride, and handling characteristics. If they can execute, they'll have the upper hand against Lexus and Acura. Without a doubt, Buick's people have their work cut out for them. But if what we've seen so far is any indication of what the future holds, that future is bright.

If only Cadillac had the same sense of purpose that Buick does.

Don't get me wrong. Cadillac is doing some great things. The new CTS sedan is an outstanding car, as good as or better than its Mercedes and BMW competition. Without question. And Cadillac has only built upon the success of the CTS by introducing a 556hp V-Series version that is so fast and handles so well, it broke the lap time record on Germany's Nürburgring track for 4-door cars. At least, until Porsche released its Panamera Turbo, which costs twice as much as the CTS-V does.

Cadillac didn't stop there, though. This past summer, they released an extremely pretty Sport Wagon version of the CTS, and a V-Series version is rumored to follow, as well. Two months ago in LA, Cadillac took the wraps off the CTS Coupe, Cadillac's first coupe since the Eldorado bit the dust in 2002.

And in Detroit, Cadillac rounded out the CTS Coupe introductions by pulling the sheet off its V-Series variant. Complete with a cockpit-style Saffron suede interior, incredibly angular lines, and a multitude of fins and scoops adorning the exterior, the CTS-V Coupe easily recalls the styling of the F117A Nighthawk Stealth Fighter.

So, when it comes to midsize luxury perfomance sedans, Cadillac has all the right boxes checked. They also sell one of the only relevant full-size luxury SUVs on the market, the Escalade. And they've improved it with its own luxurious interior, a selection of bodystyles, and more recently, the availability of a hybrid powertrain. The hybrid version makes the large, powerful vehicle as fuel efficient in the city as a Toyota Camry, while capable of hauling people and towing a boat or trailer behind.

So Cadillac has no problem with the Escalade and CTS. They communicate their desired messages loud and clear. They hit their target demographics right where Cadillac wants them to. With sharp creases and strong vertical line themes, their design language is strong, powerful, and distinctive. The CTS and Escalade show the world that Cadillac is at its rightful place at the top of the GM heap, the tip of the GM spear. And it's their forward-thrusting, aggressive, ostentatious Cadillac design identity that has affected the other vehicles in the line. Vestigial vertical fin taillights are perched charismatically on the back of each Cadillac. Bold, intricate V-shaped crosshatch grilles give each model a strong face. And edgy, chiseled surface detailing call out before God and all the world: BMW, Mercedes, and Audi, gang way...we're breaking through.

Where Cadillac's message gets muddled is in its other products - the SRX crossover and the XTS flagship sedan they previewed at the auto show.

The SRX is Cadillac's new midsize crossover. It's meant to compete head-on with the class sales leader, the Lexus RX. The freshly redesigned vehicle was just released this summer, and already it's risen to #2 on the luxury crossover sales charts - far ahead of the larger SRX it replaced. So what, exactly, is the problem?

The problem is, this car really should have been a Buick. In an interview with Steve Shannon, Cadillac's Executive Marketing Director, I inquired about Cadillac going after the Lexus when Buick is establishing itself as a Lexus competitor. The reasoning he gave was that Cadillac wanted to go where the sales were with the SRX.

You see, the last generation SRX was an excellent vehicle, based on the rear-wheel-drive CTS platform. It won Car and Driver's 5Best Trucks award repeatedly, and became an Automobile Magazine All-Star, as well. The vehicle received critical acclaimed and became emblematic to the motoring press that Cadillac had its eye locked on making better vehicles than BMW and Mercedes. The only trouble was, the first SRX didn't sell.

So it's understandable that Cadillac would go after better sales figures with its replacement. The trouble is, by using Lexus's formula, Cadillac isn't really leading with this vehicle. They're following. And it shows. The new SRX, while excellent, is not nearly as engaging to drive as its predecessor. The standard 3.0L V6 is outmatched by the FWD-biased SRX's weight. The optional 2.8L Turbo V6 cures this problem, but adds as much to the sticker price as it takes away in fuel economy. Which is to say, a lot.

So the new SRX's tamer personality is now decidedly discordant with the aggressive attitude the CTS exudes. It also means that Cadillac now has no direct competitor to the more involving BMW X5 and Mercedes-Benz ML. So the SRX is not a step in the right direction if Cadillac wants the same credibility level as the German luxury brands have. It's also decidedly "old GM" in the sense that it horns in on the Buick brand's territory.

The new XTS Platinum Concept also muddles Cadillac's product message. Not because it isn't drop-dead gorgeous and luxurious. It most certainly is both. Jaw-droppingly so. But what Cadillac needs if its transition to BMW/Benz/Audi rival is to be complete is a large V8 rear-drive luxury performance sedan. Something to give the 7-Series, S-Class, and A8 something to worry about. On the contrary, the new XTS is built on the same front drive-biased platform as the Buick LaCrosse and the next Chevy Malibu. It's shown with a 3.6L V6 with a hybrid system and all-wheel-drive.

God is in the details on this car. And it is achingly beautifully designed and crafted. Its orchid themed interior with petal-like details reveals layers of even greater detail all around. Perforated suede abounds. Wood, leather piping, and polished aluminum are used in expressive, tasteful, yet intricate ways. Should the production version be close in design and execution to the concept, it should find plenty of buyers and admirers. But what it will be missing is notable: V8 power, which comes standard on all of the aforementioned super-luxury sedans.

The lack of a V8 in what is to be Cadillac's flagship sedan is a glaring oversight. Cadillac pioneered the V8 engine layout in 1914. It's the inspiration from which Cadillac drew the "V-Series" performance moniker and styling themes. And it's a requirement if the car is going to play in the super luxury sedan segment.

Which only suggests that it is not Cadillac's plan to play in that segment. And in light of that, the new XTS seems to be much more a replacement for the current, hoary DTS (which, by the way, only comes as a front-drive V8). Mr. Shannon confirmed that the V8 engine configuration would only continue in Cadillac's performance-based models like the V-Series, as well as vehicles like the Escalade. And the V8s in both sets of vehicles aren't Cadillac's design, at all. Cadillac has announced no replacement for its own Northstar V8 available in the STS and DTS sedans, which they're phasing out. So it would appear that, when the XTS bows to replace both sedans, it will mark the end of Cadillac's nearly century-long era of V8 leadership.

Even though the super luxury segment isn't critical from a sales volume standpoint, it is absolutely critical for the establishment of a brand's image as a luxury car maker. The luxury brands considered to be "Tier 1" (Audi, BMW, Lexus, and Mercedes) all field entrants in this category. None of the "Tier 2s" (Infiniti, Acura, Volvo, Lincoln) do. And from the look of it, neither will Cadillac. Again, in an important segment, it shows Cadillac's reticence to take risks and address its image long-term.

However, there are forces within Cadillac that may change that. A new, rear-wheel-drive ATS compact performance luxury sedan is on the way. And from most reports, the BMW 3-Series and Mercedes C-Class have something serious to worry about. That's a very good sign. Cadillac's new General Manager is young and seems to have a handle on where Cadillac needs to be. But if Cadillac is going to come back into its own, the brand needs to offer credible entries beyond the $60k threshold. And they need to do it soon.

Stay tuned.