Topic: Test Drive: 2011 Buick Regal CXL

[Jaeger]

Ok I understand that in order to get the regal out sooner they will lose money on it..what I don't understand is the need to get it out "sooner".

What exactly is the point of selling 35.000 or less regals at a LOSS? Its a new "exciting" model that should see a sales surge simply becuase its NEW. Why not wait a year launch it with a more refined powertrain (since you have more development time) and sell 35,000 plus the next year at a PROFIT??

Not only that but the article further reveals that a lot of those sales of money losing Regals will actually canabalize sales of GM vehcicles that are actually PROFITABLE.

I believe this is called laying the groundwork for a future bailout.

Now, what do I have to do to get me one of them T-shirts?    And can mine have "Tomorrow's legacy costs today!" on the back?

Jaeger

[Dante]

The monthly US/Canadian sales numbers are in their corresponding threads, populated by SirA every month. The Regal numbers are in there for reference.

Canda - August 2010
Regal   - 111
Acura TSX - 155
Passat – 321 (safe to assume that under 100 are Highline trim)
Volvo 60 Series - 6 (old model)
…. and for kicks, Lincoln MKS - 82, Genesis Sedan - 55 (based on the price range).

US  August 2010
Regal –  1704
TSX – 2411
Passat – 1995
Volvo 60 Series – 175 (old model)
… and Lincoln MKS -1111, Genesis (Sedan+Coupe) - 2889

It seems like the POS, overpriced, underpowered Regal is doing OK relative to its direct competitors in terms of sales; people seem to talk with their wallets.

[Shnak]

The monthly US/Canadian sales numbers are in their corresponding threads, populated by SirA every month. The Regal numbers are in there for reference.

Canda - August 2010
Regal   - 111
Acura TSX - 155
Passat – 321 (safe to assume that under 100 are Highline trim)
Volvo 60 Series - 6 (old model)
…. and for kicks, Lincoln MKS - 82, Genesis Sedan - 55 (based on the price range).

US  August 2010
Regal –  1704
TSX – 2411
Passat – 1995
Volvo 60 Series – 175 (old model)
… and Lincoln MKS -1111, Genesis (Sedan+Coupe) - 2889

It seems like the POS, overpriced, underpowered Regal is doing OK relative to its direct competitors in terms of sales; people seem to talk with their wallets.

Funny how you have a completely different interpretation of the numbers than I do... I would think that a vehicle with so much hype would sell a bit more than the 3-4 year old Passat, especially in the states where VW's aren't traditionally strong sellers. Maybe that'll all change once the GS gets here, or when GM innevitably starts to heavily discount them, we'll see.

[Dante]

I don't see much hype outside of this forum. In the real world, I see some advertising here and there, but not much more than I see from other manufacturers. I would say it takes time to build awarness with a new model for any car.

[vdk]

I was told demand exceeds supply, as only a limited number of Regals are coming in the country from Europe.

[Jaeger]

I was told demand exceeds supply, as only a limited number of Regals are coming in the country from Europe.

Not sure where you heard that - my dealer had 8 on hand and keeps calling me back for another test drive even though I told him "not until you get a turbo in".

Jaeger

[toolatecrew]

I was told demand exceeds supply, as only a limited number of Regals are coming in the country from Europe.

Which is a good thing since they are selling them at a loss.

Probaly best to restrict supply to prevent losing more money right?

[Shnak]

I was told demand exceeds supply, as only a limited number of Regals are coming in the country from Europe.

Which is a good thing since they are selling them at a loss.

Probaly best to restrict supply to prevent losing more money right?

 

[tortoise]

Where does it say they're selling it at a loss?

"Or we could forego any significant profitability on the vehicle until we can get the plant in Canada producing the Regal."

To me that means they're still making at least a little money on each one, just not the usual margins.

[vdk]

Where does it say they're selling it at a loss?

"Or we could forego any significant profitability on the vehicle until we can get the plant in Canada producing the Regal."

To me that means they're still making at least a little money on each one, just not the usual margins.

I doubt they're making any money at $1 CAD = €0.70.

[toolatecrew]

Where does it say they're selling it at a loss?

"Or we could forego any significant profitability on the vehicle until we can get the plant in Canada producing the Regal."

To me that means they're still making at least a little money on each one, just not the usual margins.

From the article:

But the automaker likely will lose money or at least not make much on every one it sells in the early going

So yes the might make a small profit but its "likley" they lose money.

Whichever way it goes it doesn't make any more sense to canablize Lecrosse or Malibu sales that might give you a $1000 profit for a Regal sale that makes you $100, 0$ or - 500.

It may well explain why the exempted the regal from the GM Family pricing or any other incentive programs.

The point remains...launching the Regal the way they did appears a less than optimal plan.

[tortoise]

Fair enough.  I read that as conjecture on the part of the author.

And agreed... They would have been better served to launch the Regal with higher margins and the turbo available.


Though I don't think it would have stopped the whining.

[inco]

Not to feed the fire of insecurity, but I notice that Hyundai is now showing ads with the Sonata Turbo so I guess it's now available.

[dirtyjeffer]

However, the Regal, in the early going, is being cross-shopped against its own siblings and its cousins. Edmunds.com's analysis of shopping traffic on its Web site shows nearly half -- 46 percent -- of people who have a Regal on their shopping list also consider Buick LaCrosse. Fourteen percent consider Buick Lucerne. Nearly 12 percent check out Chevrolet Malibu. Of the most cross-shopped vehicles, the only non-GM product to be considered by Regal buyers is the Ford Taurus.

hmmm...so it is mainly being shopped against the LaCrosse, the Lucerne, the Malibu and the ONLY NON-GM product is the Taurus...kinda funny, since GM (and a few in here) say it is supposed to go up against the likes of the Acura, Lexus, Audi, BMW, Mercedes and other "Premium" brands...again, not saying the Regal is crap, but like i already mentioned, it isn't being shopped against other Premium brands, because the car simply doesn't compete in that league...it is a "pretty Malibu", and as such, will shopped against other "nice" cars, like the LaCrosse, Lucurne and Taurus.

[dirtyjeffer]

Not to feed the fire of insecurity, but I notice that Hyundai is now showing ads with the Sonata Turbo so I guess it's now available.

i haven't seen anything of the like, but it raises an interesting point.

you don't HAVE to lead with your best (top of the line) product first...however, at least make your "new" product competitive and attractive (make people want to buy it).

in the case of the Sonata, while they didn't launch the Turbo first, their "standard" model still offers class leading power (4 cylinder), class leading fuel economy, class leading safety features and class leading space and exceptional value...so, while they didn't start with the "Halo" model, the "regular" version is already a great product, very competitive (if not one of the segment's best) and well priced...that's the key difference...the Sonata is a great car on its own merits, and the Turbo model simply raises the stakes...the Regal, while a nice car, doesn't really offer anything "over and above" to help it really stand out...yes, it has a nice interior, but so do most cars now...yes, it has a decent ride, but again, so do many others (especially in the mid-size class)...there just isn't really anything there that stands out and says "Hey, you should seriously buy me over XYZ", and that is the problem.

[Leviathan]

Ok I understand that in order to get the regal out sooner they will lose money on it..what I don't understand is the need to get it out "sooner".

Probably because the dealers required more metal in their showrooms now that Pontiac is history.

[Sir Osis of Liver]

Ok I understand that in order to get the regal out sooner they will lose money on it..what I don't understand is the need to get it out "sooner".

Probably because the dealers required more metal in their showrooms now that Pontiac is history.

Exactly. There were a lot of Pontiac-Buick dealers.

[Dante]

in the case of the Sonata, while they didn't launch the Turbo first, their "standard" model still offers class leading power (4 cylinder), class leading fuel economy, class leading safety features and class leading space ...

Just to set the record straight, out of all things listed, the Sonata only "leads" in power on the paper.

This is not to say it is not at the top of the class, but not quite the "leader", which assumes it would be the best in every aspect listed.

[rrocket]

I think I'm more surprised at the sales numbers for the TSX and TL....

[Dante]

I think I'm more surprised at the sales numbers for the TSX and TL....

In agood or bad way? I guess bad since Acura sales have been sliding for a good while now.