Buick Sales Epitomize GM's Woes

Buick was the seed from which General Motors Corp. sprouted. And for generations, the luxury car line was one of GM's most bountiful divisions.

The Buick brand filled a crucial niche for the auto giant, attracting well-heeled consumers who wanted more than an Oldsmobile but weren't comfortable with the flash of a Cadillac.

Now as GM faces the threat of bankruptcy, Buick has emerged as an emblem of the auto giant's broader woes. GM sold nearly a million Buicks in the U.S. in 1984. By last year, sales had sputtered to 282,288, a 70% decline over two decades, the biggest of any major auto brand.

Buick has broken down in U.S. showrooms for the same reasons that Americans deserted GM brands such as Chevrolet, Pontiac and Olds in favor of Toyota, Honda and Nissan.

Buick offered bland designs and ignored consumer demand for pickups, minivans and SUVs. Buyers' shift toward snappier styling, snazzier features and -- most of all -- higher-quality cars left Buick vulnerable in the late 1980s when Lexus, Infiniti and other foreign luxury models invaded its home turf. Even using golf superstar Tiger Woods as pitchman hasn't helped Buick.

Warnings that GM's luxury car stronghold was about to collapse went unheeded as the automaker clung to the conviction that Americans really would rather have a Buick.

"I remember being told by a GM executive

In the mid-1980s, a Burbank market research firm hired by the automaker warned that European and Japanese rivals were revving up to leave GM in the slow lane.

"The sounds of heavy armor can be heard in the suburbs, in what may be the final assault on General Motors' long-time stronghold, the luxury car market," the report from Vista Group said. If GM didn't satisfy car buyers' tastes for smoother handling, sleeker designs and fewer but more luxurious options, Buick would start losing customers to the new competitors. The Vista report proved prescient.

The failure of Buick and its sister brands has thrown GM into a tailspin.

After losing $10.6 billion last year and with its U.S. market share at an 80-year-low, GM's chief executive, Rick Wagoner, recently offered buyouts to 125,000 hourly workers.

Many Wall Street analysts are increasingly concerned about GM's finances. Some believe the world's largest automaker might file for bankruptcy protection, a move that -- because of GM's size -- could convulse the entire U.S. economy.