In recent years Opel, the German subsidiary of General Motors, has offered some very desireable cars. But the company has rarely offered these cars in the U.S. and when it has they have not sold well. A decade ago Americans failed to buy the Cadillac Catera, and more recently they left the Saturn ASTRA sitting on lots.
Opel’s latest hit, the midsize Insignia, was supposed to come to the U.S. as a second-generation Saturn AURA. But then Saturn was scrapped, and so we, like China, will receive the Insignia as a new Buick Regal.
For the first model year, until a production line is set up in North America, the new Regal will be produced in Germany. Because the dollar remains weak compared to the euro, GM’s production costs will be high, and there is a clear need to price the car as high as possible. At the same time, it must be priced competitively, and not too close to the related but larger and more luxurious Buick LaCrosse.
Well, pricing has been announced, so we have our answer. One tactic: no “CX” base trim will be offered in the Regal’s first year. Instead, initially we’ll only receive the mid-level CXL.
The new Buick Regal will only be offered with four-cylinder engines, and at first only with a 182-horsepower 2.4-liter. The same engine was just added to the larger Buick LaCrosse’s powertrain options, though only in its CX trim. Comparing the Regal CXL to the LaCrosse CX (with alloy wheels and Comfort and Convenience Package to make features comparable), the Regal lists for $1,250 less. Adjusting for remaining feature differences widens the gap to about $1,800.
Similarly load up both Buicks in CXL trim (in which case the LaCrosse has a 255-horsepower 3.0-liter V6) and the LaCrosse lists for $3,355 more. Adjusting for feature differences–but not the engine difference–cuts the Regal’s advantage to about $2,000. If the 3.0-liter V6 was a more impressive performer in the LaCrosse, this would be too close for comfort.
Since it’s not far below the LaCrosse, and it has a semi-premium brand, the Regal must be much more expensive than its Chevrolet cousin, the Malibu, right? Especially since the Malibu is based on the first-generation Epsilon platform, and won’t switch to the Epsilon II platform that underpins the new Regal until the 2012 model year.
Well, no. The Regal CXL lists for $430 LESS than the Malibu LTZ (after adding a compact spare to the Chevrolet, since one is standard on the Buick). Adjust for feature differences, and the difference ends up $70 in the Malibu’s favor. So, before incentives, the two cars are very closely priced. In this case, it’s the Regal, no contest. The only compelling reason to get the Malibu instead: if you want a V6.
Buick sees the Acura TSX as a close competitor, since it is also a relatively compact “near luxury” sedan and until recently was only available with a four-cylinder engine. Add a sunroof to the Regal, since one is standard on the TSX, and the Buick lists for $2,125 less. Adjust for remaining feature differences, and the gap shrinks to about $1,400. Compare invoice prices instead of MSRP, and the difference is less than $300. Very close.
Buick isn’t the only one gunning for the TSX’s buyers. Suzuki also pits its new Kizashi sedan against the Acura. The Kizashi, like the TSX, is more compact and more nicely furnished than the typical midsize car. Like the new Buick Regal, is also only available with a four-cylinder engine. A Kizashi SLS (the top trim level) with CVT, floormats, and metallic paint lists for $1,506 less than a Regal CXL with sunroof. Adjust for the Suzuki’s extra features (it is very well endowed for a car in this price range) and its price advantage widens to about $2,300. But the Kizashi is a half-size smaller, and few car buyers even know it exists.
The 2011 Buick Regal will not only be German-engineered. It will also be German-made. So some people might cross-shop the Volkswagen Passat. A Passat with optional 18-inch alloys (standard on the Regal) lists for $550 more than a Regal with the optional sunroof (standard on the VW). Pretty close. The Regal still includes about $1,100 in additional equipment, so its price advantage is about $1,700. Pretty good–but recall that the VW has a more powerful turbocharged, 200-horsepower turbocharged 2.0-liter four-cyliner engine. A 2.0-liter turbo four good for 220 horsepower will later be offered in the Regal, but its additional cost will easily wipe out this advantage. So adjust for the engine difference as well and these two cars also become very close in price.
Overall, the 2011 Buick Regal isn’t a steal. Unless GM ends up offering it with large rebates, which doesn’t seem likely, it is priced about the same as its closest competitors once feature differences are adjusted for. So the Regal isn’t likely to be bought instead of a Malibu, TSX, or Passat on the basis of price alone. Instead, it’s going to be a matter of which car is most appealing. Which, if Buick is going to survive as a semi-premium brand, is how it should be.
To run your own price comparisons: