First introduced in China in 2022, the coupe-like Envista could be a critical new addition to Buick’s U.S. line-up, targeting young buyers looking to enter the “premium” market at an affordable price. The General Motors brand is counting on Envista to help keep its momentum building. After suffering a 43% dip in sales in 2022, demand nearly doubled for the first half of this year. That’s welcome news for a brand rapidly approaching its 125th anniversary.
It almost didn’t make it this far. When GM was forced to file for Chapter 11 bankruptcy protection in June 2009 it was forced to abandon four of its brands. Many analysts expected Buick would be one of them. But it survived the cut due to strong demand in the booming Chinese market. Since then, GM has struggled to rebuild Buick back home.
As the new Buick Envista underscores, the brand has abandoned the passenger car segment in favor of SUVs. And it is set to go all-electric, though Buick’s first EV is still a couple years away.
To get a sense of where the long-running marque is today, TheDetroitBureau.com spoke to Sam Russell, its marketing director, during a media drive of the new Envista in Chelsea, Michigan.
TheDetroitBureau: Buick has certainly had its ups-and-down. This year seems to show it bouncing back. Let’s talk about where the brand is right now, and where it has to go.
Sam Russell: The history of Buick has been a rocky road, though there have been some shining moments. What we’re doing today is zeroing in on who our customers are and what our customers need to make sure we’re providing truly differentiated products. That’s put us on the path to some of the most robust success we’ve seen in the brand in a long time. But we see we can do a few things better.
TDB: What do you mean?
Russell: You look back six, seven years ago, the strategy was not clear. I’ve been in marketing and sales for most of my 28 years with (GM) and one thing I’ve learned is that if you leave your customers behind or confuse them they have other (options). They need to know what they can expect from the brand.
TDB: What’s an example?
Russell: With the Envista you have a trim strategy that has an entry, a sporty version and a top-tier version. Simple, right, a good-better-best approach. Customers can track what we’re doing.
What is it?
TDB: Perhaps, but the Envista is a curious product. It reminds me of the Toyota Crown which isn’t quite a sedan, nor an SUV. What exactly is this new Buick?
Russell: It’s kind of bringing the best of both worlds. It’s a big transition for the company. It’s a big transition for our customers. The trend has been towards SUVs and we were on the forefront of that, starting with the Enclave, the first three-row crossover which, in 2008, entered a white space with something different. And it did incredibly well. With Envista you see four big pieces we provide people. We wanted to provide the styling from a sedan perspective, and the versatility of the SUV side. And then there are the technological needs and safety our customers expect in a vehicle.
TDB: So, are you going to position it as a sedan or an SUV?
Russell: At the very low level it will depend upon who you’re talking to and who your audiences are. Ultimately, we like the idea of calling it our one true crossover.
Owner loyalty
TDB: A recent S&P study found that brand loyalty has sharply declined in recent years. And only a bit more than a third of Buick owners return to trade in on another Buick.
Russell: I’d like to retain every customer. But we only participate in 40% of the industry volume. (ED: there are no Buick sedans anymore, nor does the brand offer sports cars, hatchbacks or pickups, for example.) So, there is an automatic disadvantage. If a customer needs a full-size SUV they’re going to migrate elsewhere like a (GMC) Yukon. I don’t have that product. That’s a losing battle. If you look where we were a few years ago, the loyalty on our vehicles was only 29%. So, when you look at the segments we compete in, retaining 40% of our customers, that’s a pretty solid number in my mind.
TDB: But you still clearly have to be conquesting (winning over buyers from other brands) if you want to grow.
Russell: Always. Always, yeah. It’s about taking a bigger than our fair share in the segments we’re in. (Envista) gives us an opportunity to introduce the brand to people who might otherwise not be considering Buick today because it’s not on their radar.
TDB: One reason brand loyalty has dropped for most manufacturers is Tesla. So, let’s talk about where Buick has to go with electrics. You’re finally getting ready to enter that sector, aren’t you?
Russell: EVs are driving that behavior (ED: the decline in brand loyalty). There are new brands out there that don’t have a long history and their very presence in the marketplace is impacting everyone else’s loyalty. Right now, I don’t have an EV for customers if they do decide to take that plunge. But we’re moving very quickly to become an EV brand … by 2030. We’re going to make sure we offer premium SUVs and products in the EV space that build on the foundation we’re establishing today with the new design language (ED: shown in the form of the Wildcat EV concept).
TDB: When is your first EV set to reach the U.S. market?
Russell: I don’t think we’ve shared that publicly but it’s going to be quick because we’ll be all EV by 2030.