It has a long and prestigious history. The brand is credited with many innovations, and a century ago it was the best-selling car in the United States. However, Buick is far from its prime. It barely survived after General Motors declared bankruptcy in 2009 during the financial crisis. Also, Buick is widely seen as an “old-fashioned” brand that is out of step with the times. While Buick is dying in America, it’s an entirely different story. In China, many people like Buick cars. Take a closer look to see why.
Buick cars are not a success in the United States – but they are very popular in China
Despite its shift towards crossovers and SUVs, Buick still struggles in it. Many auto experts criticize the brand for declining quality in recent years. The brand also suffers from the “double car” practice, where General Motors uses a different brand name for virtually the same vehicle. Buick Encore and Chevy Trax are an example.
In 2018, more than 80% of Buick’s global sales were in China, with more than 1 million units sold. This sales figure is five times the number of Buicks sold in America (about 200,000 units) over the same period.
Moreover, in China, Buick sells to all other American automakers. In addition, Buick is one of the best selling auto brands overall in China.
The reasons why Buick cars are so loved and popular in China
There are many and varied reasons why China loves Buick. The American automaker’s unique position in the Asian country also dates back many decades. Reasons include:
- Buick was the favorite car of famous Chinese political figures in the early and mid-20th century.
- Partnership with a local Chinese manufacturer in the 1990s
- Buick caters to the unique preferences of Chinese car buyers
Buick was the favorite car of famous Chinese political figures
In the early and mid-20th century, Buick was the car of choice for many famous Chinese political figures. These include Sun Yat-sen, one of the founding fathers of modernity, as well as Zhou Enlai, the first prime minister of the People’s Republic of China. The first impression of the auto brand for many Chinese people was seeing elitist political figures driving around in luxury Buicks in the 1950s. That created a lasting impression, one that has remained — and has persisted into modern times.
Partnership with a local Chinese manufacturer
Another reason for Buick’s success in China is its strategic partnership with a local Chinese manufacturer. In the 1990s, the Chinese auto market was still in its infancy. However, Buick gave it a boost with the partnership, which included producing new cars that stood out from competitors. This has also created a lasting impression on Chinese consumers.
In addition, Buick has a partnership with Shanghai Automotive Industry Corporation (SAIC). Over the years, SAIC has pushed Buick and GM to produce high quality cars. As a result, the quality of Chinese Buicks is better than in America or anywhere else in the world.
Buick caters to the unique preferences of Chinese car buyers
For any company to make progress and be successful in the international market, it is essential to offer products that meet the unique needs and desires of the local population. And Buick has done a great job of doing this, producing cars that cater to the unique preferences of Chinese car buyers.
For example, although it is no longer very popular in the United States – in China it is often the preferred vehicle for powerful executives. The Chinese minivan, with its ample space and luxurious amenities, has an almost limousine-like stance. As a result, Buick offers luxury minivans that are among the brand’s most popular vehicles in the country.
In addition, Buick has successfully marketed its cars to younger Chinese car buyers. In China, the average age of Chinese Buick buyers is 35, about half the age of the average Buick buyer in the US Also, many Buick ads in China are featured. They often have a futuristic appearance and are characterized by young and wealthy people.
Is it risky for Buick to depend on the Chinese market?
Buick is a popular and successful brand in China. This success can be attributed to being the preferred choice of well-known Chinese political figures – as well as to local partnerships and catering to the unique preferences of Chinese car buyers. However, Buick’s heavy reliance on the Chinese market comes with risks – both financially and ethically.
There are questionable ethics of doing business in a country with great concerns. This includes the suppression of religious and cultural freedoms in Tibet after the 1950-1951 invasion, which killed more than a million Tibetans – 20% of the country’s population at the time.
During the invasion and in subsequent years, most of the 6,000+ Buddhist temples in the country were destroyed by the Chinese army. Simply carrying a picture of the Dalai Lama, the exiled spiritual leader of Tibet and Nobel Peace Prize laureate – is illegal, as the “culprits” have been arrested and sent to prison.
There are also accusations of genocide against the Uighurs in Xinjiang, with a million or more people imprisoned in state-sponsored “re-education camps”. Additional concerns include suppression of democracy in Hong Kong, disregard for international maritime borders with other Asian countries, and the delicate situation with Taiwan.
As many global companies have already learned, it doesn’t take much to quickly counter boycotts in China if they run afoul of the Chinese government and Chinese consumers. For example, several years ago, in an inspirational Instagram post, Mercedes-Benz quoted the Dalai Lama. This caused a sensation in China, and the automaker faced a potential boycott. in response, to Chinese consumers in a subsequent Instagram post.
However, many companies realize that doing business in China is not worth the risk. For example, in the past, movie studios would spend millions of dollars adjusting films to meet Chinese censorship requirements. For the past two years, though, they’ve been rebuffed — notably with Paramount removing the Taiwanese flag from Tom Cruise’s famous bomber jacket in Best sequel.
Will Buick be successful in America again?
As far as the risks of doing business in China go, it remains to be seen if Buick will change course. However, the brand appears to be taking some of the lessons it learned from the Chinese market by applying them in America. For example, Buick first released its compact SUV in China before importing it into the US Also, Buick has plans to go all-electric by 2030.
We’ll have to see if the love Buick is enjoying now in China will one day return to America.
