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Monday, November 13, 2006

Detroit Ostrich Farm: Hallucinations At Buick

Stocks: (GM)(TM)(HMC)

Someone put LSD into the drinking water at GM. The big car maker’s Buick unit announced that it believes that it can get up to 40% of its new customers for the Enclave crossover SUV from Acura and Lexus. Acura is owned by Honda and Lexus is part of Toyota.

Toyota and Honda have owned GM in market share for several years now.

Acura’s recent growth in the US market has be fueled by sales of its SUVs and crossovers.
Of course, they plan to willingly give a large portion of this market to Buick.

Lexus also showed sales gains in October. As part of the world’s most successful car company, the luxury brand is also likely to hand market share to Buick so that the GM unit can do better.

Recent sales at Buick have not even kept pace with GM’s overall numbers. In October GM’s total unit sales rose almost 22%. Buick was up a little over 15%.

There is something to be said for hoping to take shares from rivals who are doing better, but telling the press and the competition.


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