Buick Best Growth Brand So Far This Year

Buick Best Growth Brand So Far This Year

By Michelle Krebs September 24, 2010

"Buick is the fastest growing brand in the U.S." declared General Motors Co. executives in their September sales call with media and analysts earlier this month.

Buick? Right.

But some checking bears out that, sure enough, Buick has seen the largest percentage sales increase in the first eight months of this year compared with the first eight months of last year -- a 61-percent rise, according to Edmunds.com's analysis. Moreover, GM's Cadillac and GMC divisions round out the top three of the top-10 movers; Cadillac and GMC had with double-digit hikes as well.

It can be argued Buick and its GM stablemates had declined furthest - so had the most upside potential - because of last year's lead-up to and ultimate entry into Chapter 11 bankruptcy proceedings.

Having the most room to grow is true of some of the other brands that ranked in the top 10 of fastest-growing brands in Edmunds.com's analysis.

Top 10

Luxury brands suffered disproportionately in 2009 - one of the worst years for auto sales in history. Luxury makes Infiniti, Porsche and Acura had particularly dismal performances a year ago. This year, however, those three makes have moved into the top 10 of fastest growing brands, along with other luxury makes such as Mercedes-Benz and Audi.

Not all of the top performances thus far can be attributed to particularly weak sales last year.

Volkswagen AG's drive to sell a million vehicles in the U.S. by 2018 is evident with both Audi and Volkswagen placing in the top 10 of fastest-growing brands through August this year. Volkswagen, in 10th place for growing brands so far this year, saw sales down only a tad in 2009. Audi, now in fourth place, bucked last year's downward trend altogether and is on track for record sales in 2010.

And of course, there is Subaru, which marched through 2009 setting sales records as if were operating in an alternate universe where no recession existed.

Not all of this year's surge for GM's brands can be accounted for by comparison with a lousy 2009. Last year, GM retained four brands - Buick, Cadillac, Chevrolet and GMC - and ditched another four. Pontiac was eliminated. Saturn was eliminated after a sale to the Penske Group failed. Hummer wound down after a deal with a Chinese company collapsed. And Saab was sold off to Dutch sportscar-maker Spyker. GM's four surviving brands benefited from the elimination of the other four: Edmunds.com's historical cross-shopping data shows many GM models have been cross-shopped most directly with models from another GM division.

GM also has launched an onslaught of new models, almost all of which have been successful, including the Buick LaCrosse, Chevrolet Equinox, GMC Terrain and Cadillac SRX; these latest models are driving the growth of the brands. And GM's crossover vehicles, both new and older, particularly support their respective brands.

Middle of the Pack

Meanwhile, Ford Motor Co.'s momentum from last year has spilled into 2010. Through August, Ford ranked No. 11 in fastest-growing brands with a 21-percent bump, just above the industry's average increase.

Likewise, Subaru, Kia and Hyundai all bucked last year's downward trend. Sales still are rising for the Korean makes, although not by the hefty amounts seen last year compared with the rest of the industry.

Through August, the industry's year-to-year sales increase is running at 20.6 percent if all defunct brands are not included; 28.9 percent if they are.

Biggest Losers

Isuzu, which closed up shop in the U.S., was the biggest loser among the 38 brands Edmunds.com tracked through the first eight months of this year. And not surprisingly, Pontiac, Saturn and Hummer - eliminated by GM - along with Saab, which was sold by GM to Dutch sports car maker Spyker, also were losers.

Daimler's smart brand also is losing ground, seeing a nearly 63 percent decline on sales year to date.

Also in negative sales territory so far this year are Toyota, which has been besieged with recalls and the subsequent effect on sales, Mitsubishi, Volvo, Toyota's Scion brand and Suzuki.  Suzuki sales have plunged by more than 50 percent - as much as GM's defunct brands. 

 

 

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.