Buick Likely To Receive Next-Generation Opel Adam7
The transformation of GM’s Buick continues to occur before our very eyes. And in a continued effort to fill in white space, rumor has it that the next-generation Opel Adam will make its way to the United States with Buick’s Tri-shield badge as part of the continued global alignment of Opel-Vauxhall with Buick.
A new report from Auto News says that GM is very serious about bringing the sporty subcompact/city car to the states. To note, the current, first-generation Opel Adam does not meet various U.S. standards for road worthiness, something we feel is a silly, outdated procedure for the most part.
For instance, the current Adam’s lights, roof, front bumper and airbag system would need to be tweaked and overhauled in order to bring it stateside. And that is an investment GM is not ready to make, likely due to the necessary financial investment not only to develop the necessary changes, but also apply them for production.
Instead, the next-generation Opel Adam is said to be developed to suit safety and regulatory standards on both sides of the pond, giving it a solid shot at being sold as a Buick in those markets where the brand is available — namely, North America and China.
- Sweepstakes Of The Month: Win a 2023 Corvette Z06 Convertible. Details here.
This decision is psychologically critical to GM’s future. It sends a message to conquest buyers (addicted to Asian, afraid of American) that GM ‘gets’ it.
Oh, and it’s also ANOTHER reason why GM doesn’t need to merge with FCA.
Well lets get to the real matter here.
GM needs more smaller cars the American market to meet future CAFE that is already up there and is expected to get even higher.
There is no psych here as this is all about meeting CAFE and making money.
This car has proven successful in Europe and is very popular. GM has a place where they can with a second gen model more designed to meet both Euro and North American needs has made a business case. This means they have found a way to sell this car in a volume and at a price that can make money and help with future CAFE needs.
Companies are not run on emotion and psychological needs they are run on good business principals.
The case here is GM has a car that is doing well in Europe and could do well here at a modest volume as small cars like this are not major sellers yet. GM with the volume in Europe and priced to be in the Buick sector it can make money with little risk here.
Cars like the Fiat has not sold as well as they would like but the Mini has done well and it has a little higher price point that helps with the lower volume. As for the Asian models not many have done well. The Fit has done the best but it is not really a major hit and the Toyota IQ flopped like a flounder on dry land. The fact is the Asian cars in this class have been weak and the Adam could make inroads here being of a Euro heritage that appears to be popular.
As for the FCA deal the only message needed was Mary making a very public statement that said no. There was never any reason for GM to merge with FCA as they have nothing and I mean nothing to offer outside of Jeep GM would have any interest in. Even then the price would have to be right to only buy out the division. That is not likely to happen.
If the car is cynically released to meet CAFE it will fail. That is the part people like me ‘get’ and you apparently do not. I’ll explain it to you once you put your drink down.
John nearly all cars moving into the future will be subjected to major changes because of CAFE. I know you may not be astute enough to have noticed but the cars are getting smaller, lighter and GM is now gearing up even more for 3 cylinder production.
The key is if they have to find ways to make small cars that are cool and fun to own as most Americans hare smaller cars like this.
The Automakers are making smaller car and smaller cars and have to find ways to make them desirable. This one is nice looking and a little sporty and delivers great MPG. As we have seen with the Mini these kinds of cars with the right combination sell. The Fiat is doing ok but not as well as the Mini and the Smart is gone from the market. the Asian models did not resonate as well and cars like the IQ are already gone.
The reason for these cars are clear and the path to selling them is tricky. You get the right combination to create a following it sells. You fail to set the right image and it fails. Not hard for the rest of us to understand.
GM has a good start here with lower risk so it is a good model to try to sell. It should not compete with the Sonic or Spark as it is a much different car at a higher price.
Buick and Opel Vauxhall need to be further aligned, a new Adam, developed for sale across most major Buick markets alongside Europe just makes sense. Greater leverage between the brands would help create sufficient sales volume to generate profits from a seemingly niche product, why not send the Buick Envision to Europe as well. Opel Vauxhall have two plants tooled up to build cars using D2 architecture, so how much additional capital investment would be required?. The future of these brands should be defined by leverage and smart thinking, helping to create products with a global market!
Now that they have a smaller D2 I would not be surprised if the Envision would become a Opel at some point. The present Theta is large and heavy and would not have done as well in Europe but a smaller model with a very upscale interior would so well.
Again the D2 will be sold elsewhere and you are correct it too would be low risk to give it a shot if it is based on the Buick. I see these things as added income and value of a platform to GM.
It is no different than the Opel coming here as a Regal. That has been the key for Opel is to share things with Buick globally and now it appears Holden is involved to.
The real concern is the Chinese auto market slow down and how much it will affect GM. They have been drawing good money from China and it could hurt investment in future product if they lose too much in sales. Until things happen it is too hard to measure yet.
One thing that is good is GM is only 49% invested in China as the government there will not let any outside company go it alone and you have to partner with a major Chinese MFG if you build cars there. This will limit some of the losses. Also I am glad it is happening now as they have made a good buck there. If this had happened a couple years ago they would have never made any money.