GM's California dreams are riding on Regal

Buick sedan's practical luxury seeks niche where imports rule

Scott Burgess / The Detroit News

Buick will take its midsize premium car fight to California with its all-new sedan, the 2011 Buick Regal.

Executives will introduce the Regal to about 800 potential customers and guests at a special debut today in Los Angeles. The car officially will launch at the Los Angeles Auto Show in December.

Susan Docherty, Buick's general manager and General Motors Co.'s vice president of sales, said if Buick is going to continue its revival in this tough automotive market, it must find ways to win buyers in the ultra-competitive, import-centric California market.

"You need to go to your toughest market," Docherty said in an interview with The Detroit News. "The state of California is the biggest nut to crack for Buick. Californians love their Toyotas, they love their luxury cars, their BMWs and their Priuses, Buick is not even on their radar screen."

But the Regal, with its understated luxury offerings and high-mileage four-cylinder engines, could be hitting the market at the right time, and give a much-needed boost to the automaker. Buick, one of GM's four remaining U.S. brands, has seen sales plummet 32.6 percent this year. The overall market is down 25.4 percent through October, according to Autodata Corp.

The Regal comes on the heels of the recent launches of the critically acclaimed Buick LaCrosse sedan and the well-received Enclave crossover. In October, Buick sales were up 18.5 percent over the same month a year ago, in part because LaCrosse sales doubled.

"One car doesn't transform a brand," Docherty said. "You have to have a series of successes so one, plus one, plus one equals more than three."

The Regal could help that equation, said Craig Bierley, the director of marketing at Buick. The brand will continue its aggressive marketing plan with television commercials and print ads, but it will also take a more personal approach to reach more consumers.

"We have an ambitious marketing plan that we're finishing and then we're using a more grassroots approach," Bierley said. This weekend, Buick will have a presence at the Northwest Food and Wine Festival in Portland, Ore.

Bred for all-world status

The five-passenger sedan certainly has the pedigree to raise awareness of the Buick brand.

GM developed this Regal as one of its first truly global vehicles, one that can enter any major market. It arrived in Europe last year as an Opel Insignia, where it won the 2009 European Car of the Year award. Opel is on pace to sell about 150,000 units in Europe. Additionally, the Insignia was made into the Buick Regal in China and GM has sold another 64,000 cars there.

"This has a five-star safety rating in Europe, five-star in China and will have a five-star rating here," said Jim Federico, GM's vehicle line executive, who helped develop the Insignia. "It was created from the very beginning to be a global vehicle."

With only minor changes to the Germany-built Regal, such as different headlights and Buick badging, the Regal will arrive in the United States during the second quarter of 2010.

The Regal will feature three different four-cylinder engines and the first models will have the 2.4-liter direct-injection engine. Later in 2010, Buick will introduce a 2-liter turbo-charged four-cylinder engine.

"That's the engine that has helped us win so many awards in Europe," Federico said.

Rival for Audi, Acura

Buick expects the Regal to go up against the likes of the Audi A4 and Acura TSX sedans, offering an enthusiastic ride and high-tech features at an exceptional value.

Pricing was not announced, but Bierley suggested Regal's price tag would be below the competition. The redesigned 2010 LaCrosse, which is aimed directly at the Lexus ES350, costs $4,000 less than the Lexus.

Stephanie Brinley, an automotive analyst for AutoPacific, said Buick's strategy could help the brand make in-roads among California buyers.

"Californians think of domestic brands for trucks, not cars," she said.

But she added, "Buick is doing exactly what they should be doing. Holding this debut right before the L.A. show will help get it some additional attention and raising the brand's awareness on the West Coast is very important."

The Regal will originally be made in Germany and shipped to the U.S. Bierley said the carmaker will move production to North America in early 2011.

During the first year, the Regal will not be a high-volume vehicle, but over time, its volume numbers are expected to increase.

Meanwhile, Buick hopes to impress potential customers with the resurrection of the Regal nameplate, which was discontinued in 2004.

"These people don't know this Regal," Docherty said. "Picking the L.A. Auto Show demonstrates some confidence we have in the product and in the brand."

sburgess@detnews.com (313) 223-3217