Why Isn't the Buick Regal Selling Well?

August 17, 2012


(Cars.com)

Over the past few years, we've seen a global convergence and streamlining of major vehicle lineups, which means more of the Eurocentric vehicles that automotive enthusiasts covet are coming here. But many of them aren't selling well.

For proof, just look at the relatively poor-selling BMW 1 Series , Smart ForTwo , Suzuki Kizashi or Scion iQ . (The latter two were designed with Europe in mind.) At the top of the list is the Buick Regal , which historically was one of Buick's best-selling models. In 2004 it was redesigned and renamed LaCrosse — now Buick's flagship sedan in the U.S. After a six-year hiatus in the U.S., the Regal returned to our shores, but as a different beast.

From Germany, With Love

The new Regal was engineered and designed in Germany by GM's Opel division, and it was originally built and shipped from Germany to the U.S. when the model went on sale in 2010 as a 2011 model. In Europe, it's known as the Opel Insignia and is the flagship sedan for the brand, with hatchback, wagon and sedan body styles. The Insignia also features high-end luxury items such as adaptive forward lights and a camera system that can read road markings and stop signs.


(Cars.com)

In the Shadow of Verano and LaCrosse

One problem is that the Regal is overpriced. Furthermore, the more America-minded Buick Verano and Buick LaCrosse are roomier and deliver more value for the money. Both sedans (especially the Verano) are likely cannibalizing Regal sales.

Some might think this argument unfair, since the Regal is meant to compete against the Volkswagen CC, Acura TSX and Volvo S60 and performs pretty well in terms of sales when compared solely to this group. Also, the Regal has a high conquest rate, according to GM, with some 22% of buyers trading in their imports for a Regal as of 2011. The average age of a Regal shopper, 56, is below the average Buick buyer's age of 59, according to R.L. Polk & Co. The average age for the high-performance Regal GS is 43, GM says.


(Cars.com)

On the other end, the LaCrosse costs only about $2,600 more than the Regal and is substantially roomier. It also gets the same great gas mileage with the mild-hybrid system: 25/36 mpg city/highway. This doesn't leave much reason to consider a Regal, especially if you happen to step into a dealership not knowing much about Buick's three previous sedans.

GM would say shoppers choose the Regal over the other two because it's the brand's sports model. Fair enough, I suppose. The automaker taunts in its ads that the Regal is "German engineered" and "sport injected." Most of Cars.com's Consumer Reviews also mention the sporty handling and luxury-like interior, and most even mention the German roots, too.

On the flip side, most consumers complain of shoddy interior fit and finish, something that Cars.com Industry Analyst Kelsey Mays also complained about this in his review . And the model has below-average reliability, according to Consumer Reports.

Combine the pros and cons, sporty handling and a rich interior with poor reliability and a high asking price, and you do have a European formula to engineering and marketing cars, that's for sure. Unfortunately, that formula has never worked well in the U.S., and the proof is in the pudding. It will be interesting to see if the same problems beset the Buick Encore , a small crossover known as the Opel Mokka in Europe. That car seems to have been primarily designed for the old country and for China. Pricing of the Encore will likely be the key to its success.

Related
2013 Buick Verano Turbo: First Look 
Cars.com Reviews the 2012 Buick Regal eAssist, GS  
More Buick Regal News

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