GM hikes Buick Encore production on higher foreseen demand

Article by Christian Andrei, on February 4, 2015

Betting that the Buick Encore would remain a hot sell despite the arrival of some rival models, General Motors is expanding production capacity to hike the supply of the compact crossover to the United States by around 50 percent. Buick-GMC Vice President Duncan Aldred, told Automotive News in an interview on the sidelines of the National Automobile Dealers Association convention that GM is even diverting supply of the Buick Encore from other markets around the world as it anticipates more demand for the compact crossover.

GM builds the Encore at its production sites in Mexico, South Korea and Spain. According to US dealers, there is a four-month gap from the ordering to delivery – almost double compared to the gap for a US-build car.

Keith Hudson, dealer principal at Jim Hudson Buick-GMC-Cadillac in Columbia, S.C., remarked that the Encore attracts traditional import buyers, usually those aged 45 to 65 and are downsizing empty nesters.

GM was one of the first carmakers to introduce a subcompact crossover in the US, and is now reaping the results of that gamble. Aldred is confident that the head start made by the Buick Encore in the US compact crossover segment will allow it to still command a lead against newcomers like the Honda HR-V, Mazda CX-3 and Jeep Renegade as well as the Chevrolet Trax.

In 2014, sales of the Encore surged 53 percent to 48,892 units. He is also confident that sales of small crossover will not be affected by declining gasoline prices, unlike small cars.

The sales performance of the Encore surprised both the auto industry and GM. When GM introduced the Encore in early 2013, IHS Automotive expected sales of almost 25,000 for 2015. Encore, however, was already nearing 50,000 sales in 2014.

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