Keeping the Enclave on boil - GM keeps a lid on production

[jamz]

Filed under: Plants/Manufacturing, Crossovers/CUVs, Buick, GM

click above image to see more of the increasingly exclusive Buick Enclave

General Motors has a hit on its hands with the big, beautiful Enclave CUV. People all over the country are trying to get their hands on Buick's luxurious iteration of the Lambda Ute. Rather than follow the time-dishonored practice of running as many copies of a hot model out the door as possible, GM's keeping production on the Enclave under strict control. In fact, even though some dealers have sold out of their Enclave inventory, GM will be reducing shifts at the Lansing plant that builds the Enclave. Bob Lutz explained the restrictions thusly: "We want to keep [the Enclave] hot... Nothing destroys the value of a new product faster than over producing." That's it in a nutshell, right there. The practice of tying production to demand is what Toyota and Honda tend to do. Take the Fit, for example. Part of the allure of that vehicle is that buyers often have to wait to get one. The same kind of "best kept secret" mystique surrounds the Enclave - you don't see them everywhere, and they're rather opulent once you finally get a chance to check one out. Exclusivity can also spur customers into paying full price, where before a glut of product would mean heavy discounts. Of course, GM can't afford moves such as restricted production and labor layoffs at every plant and on every model, but we hope this new tack pays off in boosting the General's image as well as its bottom line.

[Source: WSJ]

Gallery: 2008 Buick Enclave


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