As it turns out, while the Avenir would risk stealing customers away from the Cadillac CT6, the Avista concept was never meant to be a production vehicle. However, Buick officials insist that they have the capability to build production versions of these show cars. But possessing the capacity to do something doesn’t mean you should do it, as many business owners figured out.
As Buick and GM boss Duncan Aldred explained in an interview with Automobile Magazine, the sedan market in the United States of America is shrinking. Furthermore, General Motors has already invested in strengthening the Cadillac line, and the CT6 stands as one of the results of this investment. Therefore, developing a competing car from Buick would be a bad investment, as the corporation would risk spending money to produce a new car that would slow down sales for another model in their portfolio.
The Avenir and Avista concepts won’t become production models because the brand that showcased them can’t get a “viable business case for them.” By viable business case, the Buick and GMC official refers to a marketing and sales plan that would allow recovering the initial investment in development, production, and promotion. Without a viable business plan for each model, modern car companies never launch new vehicles.
In the old days of the automotive industry, some carmakers would build cars without extensive market research. Most of the time, they would be okay, and the cars would sell in sufficient numbers to achieve a profit. Some carmakers didn’t make it because of this very reason, though, as their cars had a high development or manufacturing cost, and their sales never took off.
Since General Motors closed off several brands that weren’t making cars that were profitable anymore, the American company can’t afford any more risks in its business future. So only vehicles that have a shot at obtaining solid sales figures are eventually introduced to the market nowadays.
As Buick and GM boss Duncan Aldred explained in an interview with Automobile Magazine, the sedan market in the United States of America is shrinking. Furthermore, General Motors has already invested in strengthening the Cadillac line, and the CT6 stands as one of the results of this investment. Therefore, developing a competing car from Buick would be a bad investment, as the corporation would risk spending money to produce a new car that would slow down sales for another model in their portfolio.
The Avenir and Avista concepts won’t become production models because the brand that showcased them can’t get a “viable business case for them.” By viable business case, the Buick and GMC official refers to a marketing and sales plan that would allow recovering the initial investment in development, production, and promotion. Without a viable business plan for each model, modern car companies never launch new vehicles.
In the old days of the automotive industry, some carmakers would build cars without extensive market research. Most of the time, they would be okay, and the cars would sell in sufficient numbers to achieve a profit. Some carmakers didn’t make it because of this very reason, though, as their cars had a high development or manufacturing cost, and their sales never took off.
Since General Motors closed off several brands that weren’t making cars that were profitable anymore, the American company can’t afford any more risks in its business future. So only vehicles that have a shot at obtaining solid sales figures are eventually introduced to the market nowadays.