The average incentive offered on a new Buick vehicle last quarter stood at $1,077, down 79.4 percent year-over-year and by far the lowest average incentive for the quarter among GM’s four brands. The average incentive offered on a Chevy vehicle in Q2 was $1,696 per vehicle, while GMC incentives stood at $1,633 per vehicle. The Cadillac luxury brand had the highest incentives at $2,634.
Incentive spending at Buick was much lower than the GM brand average of $1,705 per vehicle. Cox Automotive says “robust demand” at GM allowed it to slash incentive spending across all four of its brands in Q2, just as it did in the first three months of the year, while its average transaction prices rose five percent to $50,261. This also marked the first time quarterly incentive spending at GM was below $2,000 in recent history, the publication said.
Buick has struggled to maintain high inventory levels amid the chip shortage and other parts shortages, with its sales falling 56 percent year-over-year to 28,929 units in Q2, trimming its market share by nearly half to just 0.8 percent. Sales of the Buick Encore GX were down the most, falling 65.37 percent year-over-year in Q2 from 26,244 units to just 9,089 units. The Buick Enclave saw the lowest decline, falling 47.77 percent from 15,096 units to 7,885 units.
Buick will discontinue the subcompact Encore crossover after the 2022 model year and will use the extra capacity at its Bupyeong plant in South Korea to expand Trailblazer production. The automaker is also plotting Buick’s first U.S.-market EV, which is expected to launch in 2024 as a 2025 model year vehicle.