GM Will Shift Buick Regal Production To Oshawa

Last week, General Motors officially announced that the 2011 Buick Regal would be added to the Buick line up next Spring, a four cylinder model based on the Opel Insignia. Slotting below the Buick LaCrosse, the all new Regal will be built initially in Germany for export to the United States and Canada.

2011 Buick Regal

Weak Dollar

On Wednesday, GM announced that starting in the first quarter of 2011 North American production of the Buick Regal would commence, as the automaker will tap its Oshawa, Ontario facility in Canada to build the car. That quickly answers a concern raised soon after the Regal announcement – export costs and a weak US dollar would drive up the cost of the sedan.

“The new Regal gives Buick a modern performance sedan and its production here in Oshawa is terrific news for our employees, the CAW, dealers and suppliers,” says Arturo Elias, president, General Motors of Canada. “Combining Buick’s top position in the industry in terms of brand quality with the Oshawa Car Plant’s long-standing reputation for top quality assembly means customers’ highest expectations will be met with this midsize sport sedan.”

Expanding Production

Word that the Regal will be built in Oshawa is welcome news to the Canadian Auto Workers (CAW) and its union as Oshawa currently builds the popular Chevy Camaro sport coupe there as well as the GMC Terrain and Chevy Equinox compact crossover models.

Beginning about the same time as when Regal production starts, GM will also launch production of the long awaited Chevy Camaro convertible.

When GM received Canadian and Ontario government financial assistance this past summer, one of the requirements that these entities made in exchange for loans was for GM to build five different models in Oshawa. The Buick Regal is the fourth model that will be built there with a fifth model to be named at a later date.

GM employs 9,000 people directly in Canada with tens of thousands of additional jobs from suppliers and area businesses also dependent on the automaker’s success.

Source: General Motors

Suzuki Plans To Skip 2009 NAIAS

They’re one of the smallest automakers in terms of sales in the US automotive market, but Suzuki has managed to attract some attention of late especially through its zero percent financing and its US sales increase for May 2008. While other automakers struggle to ratchet up production of their fuel efficient cars, Suzuki doesn’t have that problem. Every vehicle they sell is fuel efficient, just the kind of wheels American drivers are flocking to these days.

One thing that Suzuki won’t be doing in 2009 is attending the NAIAS, commonly known as the Detroit Auto Show. The Detroit show is one of the top events on the auto show calendar every year, but it won’t be a priority for Suzuki.

According to The Detroit News, Suzuki will bow out of the upcoming show, citing an inability to secure enough space to launch display their vehicles. With three new models set to come out over an eighteen month period, Suzuki’s show floor needs have increased. Unfortunately, the Cobo Center, where the show is held, is maxed out.

Porsche also chose not to appear at the show beginning in 2008 citing that the Detroit area isn’t where many of their customers are. Suzuki is saying the same thing, but there is another problem that very much needs to be addressed: the Cobo Center must be expanded.

At the 2008 show, space was very tight with a few manufacturers assigned to the basement or lobby areas. Though these were Chinese manufacturers who don’t yet have a toehold in the North American market, it is clear that more space is needed or the unthinkable may happen — Detroit could lose its status as the NAIAS (North American International Auto Show) host, a title New York, Los Angeles, Chicago, or some other city wouldn’t mind wresting from the Motor City.

Crain’s Detroit Business reported in May that a $287 million, 120,000 square foot expansion of the Cobo Center is being hashed out with participants of regional governments who are needed to support the project. At issue was a proposal to accept no-bid contracts for the project, something opposed by several government leaders.

The NAIAS has an estimated annual economic impact of $500 million and produces some 13,000 jobs. The annual show boasts the most unveilings of new models and concepts of any other show in North America.