From the logbook: 2010 Buick LaCrosse CXS

According to Autoblog, GM has been taking their time building LaCrosses, shipping 300-400 or so in August and then stopping for a few weeks to work out bugs. Given the importance of this car to Buick, and how often LaCrosse advertisements compare the car to Lexus, patience in manufacturing to work out quality issues may be a virtue.

But we weren’t patient to find out how the new LaCrosse would perform, so following our typical testing timetable we grabbed one of the first to hit dealers’ lots. Our loaded LaCrosse CXS comes with GM’s 3.6-liter V6; lesser-level LaCrosses come with a 3.0-liter V6 similar to the one in our tested Chevrolet Equinox. A 2.4-liter four-cylinder engine will become optional this winter.

Our car has the touring package (19-inch wheels, continuously variable suspension damping), navigation, and an “oversized” sunroof. (That makes it sound like it doesn’t fit, or there is no roof left.) All in, the car lists for $37,555. Given the car’s size and content, it is a relative bargain compared to a comparatively-equipped Acura TL or Lexus ES.

You might be wondering if a Buick really should be mentioned next to a TL or ES. After all, most recent Buick sedans have been based on dated platforms. So far, our logbook entries suggest that this is indeed a very different Buick:

“Impressive drive. Very refined and inviting.”

“Wide A-pillars and short rear window impact outward visibility.”

“Driving position is narrow – high console and footwell intrusion from left.”

“No car with 40-series tires should ride this well.”

“Wish it was a Cadillac. Not sure if people who would appreciate this car would appreciate buying a ‘Buick.’”

“Good steering, smooth powertrain.”

“Sea of buttons in center stack.”

“Lots of features for the money--a good step forward for GM.”

“Trunk access is a bit tight.”

“Feels like sitting in a tub with high beltline with a very deep dash.”

“Nav system is easily the best that I’ve used. This one actually agrees with the route picked from (previous) mapping. Recalculates quickly, no U-turn, no persistence (to stay) on the planned route.”

“Great handling, nice steering feel.”

“World-class luxury interior. Quiet.”

“Big A-pillars are like blinders. Other than that and the busy control layout, a delightful car overall. I might like this more than the CTS.”

“Wraparound dash limits access and inside door pulls put style over function.”

“Refreshing styling. A woman wanted to trade her Camry for the Buick.”

“Overall quite competitive. It drives like no other Buick ever before, but falls down on some important details.”

“Was told it looks like a Lexus--maybe GM can pull this off after all…”

Our initial thoughts show that, in general, we’re pretty impressed with the LaCrosse. We’ll see how it does against the redesigned Ford Taurus and other large sedans soon.

—Tom Mutchler 

General Motors launches 60-day satisfaction guarantee

General Motors is battling an image problem. As seen in the results from our recent nationwide Auto Pulse Survey, new car buyers are less likely to consider a GM product now than a year ago, with the chief reasons being the company’s economic condition (58 percent) and unappealing product offerings (49 percent). GM hopes to change perceptions with its “May the best car win” marketing effort that provides a 60-day satisfaction guarantee on 2009 and 2010 model-year vehicles from Buick, Cadillac, Chevrolet, and GMC. (Read: "Survey: Car buyers look to buy American, sound off on concerns.")
 
Starting today and running through November 30th at participating dealers, the program allows consumers to return a purchased vehicle for a full purchase-price refund, including sales tax, between the 31st and 60th days. GM expects that over the initial 30 days, most customers will be satisfied and hold on to their purchase. Those customers who are confident in their vehicle choice could elect to not participate in the program and receive a $500 cash incentive instead.
 
GM ran a similar program before in the 1990s with both Saturn and Vauxhall, its British division. The corporation expects just 2-3 percent of the vehicles will be returned. Those that do make their way back to dealership lots will become the epitome of nearly-new used cars.
 
May the best car win
GM is looking to make a bold statement, though this one may be over reaching. Consumer Reports recommends just eight Buick, Cadillac, Chevrolet, and GMC products out of 45. (See our list of recommended cars.) While the most recent GM vehicles have generally performed well in our tests, and several we haven’t completed testing show promise, not one tops its class for overall test score. However, the Chevrolet Avalanche was named a 2009 Top Pick, edging out the higher-scoring Honda Ridgeline, for its combination of comfort, versatility, and rugged capability.
 
In many cases, the new GM vehicles may be decidedly better than the older model being traded-in, offering more performance, fuel economy, and safety features. However, the only way to truly know if they are best for you is to do your research, including conducting your own test drives in prime competitors. Worst case, the time spent will reaffirm your decision. (Read: "What’s coming from the new Detroit.")
  
The small print
There doesn’t seem to be a real “gotcha” with this program, though there are some details worth reading before visiting the dealer. A few items to note:
 

• The program applies only to retail customers, not to business, corporate, or fleet sales.
• Lease vehicles are not eligible.
• To be eligible for return, the vehicle must have less than 4,000 mile and less than $200 in damage.
• The first payment must be made.
• The vehicle must not have been in an accident.
• The title, insurance, and registrations costs will not be reimbursed.
• The original trade-in will not be returned.

Bottom line
Despite the name, the 60-day satisfaction guarantee program looks to give consumers added incentive to buy a GM vehicle. With our recent Auto Pulse Survey showing that 81 percent of new car shoppers looking to “buy American,” this program may lure more customers away from Chrysler and Ford dealerships.
 
But as always, do your research. ConsumerReports.org has a quick-and-easy new car selector that allows online subscribers to quickly sort and filter ratings and data to identify the cars that best meet your needs and budget. We also have eight special areas dedicated to each car type, such as sedans and SUVs, with targeted buying advice and vehicle recommendations.

And finally, as with any incentive plan, don’t let the excitement overshadow the need to negotiate a good purchase price as close to the Bottom Line Price as possible, accounting for dealer holdback, customer rebates, and hidden dealer incentives.

BTW: I wonder how many Corvettes will be driven for a thrilling month, then returned...

—Jeff Bartlett

GM pulls the plug on Buick plug-in hybrid

General Motors has again delayed its upcoming hybrid. Initially, it was slated to be a new full-hybrid version of the Saturn Vue, using a smaller, lighter version of the two-mode hybrid system. It was also originally supposed to be GM’s first plug-in hybrid electric vehicle, potentially preceding the Chevrolet Volt by about a month.

When the company declared bankruptcy this summer, it abandoned its Saturn division and announced that the two-mode, plug-in Vue would become a Buick—a move that would delay its introduction by as much as a year. (Read: "Preview: Buick plug-in hybrid SUV.")

Now GM says the car was not well received in a preview of upcoming models. Consumers and media writers apparently told the company the car didn’t have “the premium characteristics customers have come to expect from Buick.”
 
Now the company says it will cancel the model, and apply the hybrid powertrain to another unspecified model.
 
Whenever, and whatever that is, we’re eager to sample it. We were impressed with the two-mode hybrid system when we tested it in the Chevrolet Tahoe in 2007. It boosted the Tahoe’s fuel economy by almost 36 percent. Unfortunately, we found basic Tahoe features and underpinnings uncompetitive with other full-sized SUVs.
 

Meanwhile, we like the Chevrolet Malibu. But when we tested the Malibu Hybrid, we were unimpressed with its rudimentary hybrid system; it yielded a mere 8 percent improvement in fuel economy over the basic four-cylinder Malibu—and none on the highway.

So, how will the new plug-in eventually measure up? We look forward to finding out, and before then, discovering what vehicle will receive the orphaned powertrain.

—Eric Evarts

GM reveals future car road map

General Motors threw itself a party this week, hosting media and consumers in an event to showcase upcoming models and technology. (Consumer Reports did not attend.) Center stage was the 2011 Chevrolet Volt and the bold announcement that it would achieve 230 mpg in the city, based on an upcoming EPA protocol. (Read: “2011 Chevrolet Volt: Fuel economy results may vary.”) GM officials also reaffirmed various brand positioning strategies: Buick will target Lexus, and Cadillac will compete with BMW. Sneak peeks revealed the future products designed for just that purpose.

In the short term, GM’s 2010 model-year changes show a focus on fuel economy and safety. 

Highlights from the GM road map:

Chevrolet alone is introducing 10 new models by end of 2011, including the 2011 Aveo, Cruze, and Volt. The Spark hatchback becomes the entry-level Chevrolet for 2012. The same year, the Camaro line gets a convertible. The C7 Corvette is scheduled as a 2013 model. The Chevy Orlando, a mini minivan, based on the Cruze is also in the plan.

Buick and GMC are adding 10 new entries, including a Buick plug-in hybrid small SUV, based on the Saturn Vue and Regal sedan in 2011. A freshened Enclave will follow the next year. Changes to the large body-on-frame trucks from the various brands are yet to be determined as the company wrestles with upcoming fuel economy standards. Rest assured, full-sized pickups will remain in the portfolio, but the SUV designs and platforms are subject to review.

Cadillac is introducing five new models through 2011. Most notable, Cadillac is taking aim at the BMW 3 Series with a sub-CTS model called ATS that will be offered in rear- and all-wheel drive. A hybrid version is possible.

The Cadillac XTS sedan will replace the DTS and STS for 2012, based on a global platform with front- and all-wheel drive. A premium coupe has been rumored, inspired by the striking, long-hooded Sixteen concept.

Clearly, General Motors has much up its proverbial sleeve. How the products measure up remains to be seen. Many recent GM models have performed well in Consumer Reports tests, though reliability continues to be mixed.

—Jeff Bartlett

GM & eBay: Is car buying online a good deal?

General Motors is looking to the Web to broaden the car-buying audience through a partnership with eBay and participating California Buick, Chevrolet, GMC, and Pontiac dealers. Through this pilot program that runs through September 8th, West Coast car buyers have access to the virtual new car showroom. Shoppers can browse models on gm.ebay.com and find all the vehicle details and features. On some models there will be a “Buy It Now” price or an option to negotiate with the dealership to give your best offer.

Consumer Reports looked at the offers in this new channel to see which is better--shopping online through this program or going into the dealership? We looked at the deals and compared them to our Bottom Line Price, which factors in any dealer sales incentives, holdbacks, and rebates from the dealer-invoice price.

The results: The eBay program can save you money on certain models.

We surveyed a variety of models, and focused our detailed comparisons on three recommended vehicles: the 2009 Chevrolet Malibu, 2009 Pontiac Vibe, and 2009 Chevrolet Avalanche.

On the Malibu, we found the “Buy It Now” price to be over $2,300 less than the MSRP and almost $400 below our Bottom Line Price.

For the Vibe we found a savings of over $1,600 below our Bottom Line Price and over $3,000 less than MSRP. Both the Malibu and Vibe had factory cash back, as well.

However, not all deals were good ones. The Chevrolet Avalanche eBay price was $3,000 more than our Bottom Line Price and only $950 below the MSRP.

You can find good deals though the GM/eBay program. However, it’s important when shopping in this arena to do your research and read all the details. Since eBay is an auction site, you can have competition for the model. With the auction’s clock ticking down, you have limited time to make a decision. You also need to be prepared to purchase the vehicle and quickly arrange pickup and shipping. Also note that prices aren’t set in stone until there is a final agreement between the buyer and selling dealer.

Buyers should be wary of unexpected add-ons or markup-driven enticements (e.g., VIN etching, stain protection, extended warranties), just as they would with a traditional purchase. And as always, the buyer may need financing. Best to know the fair rates and secure a loan quote before accepting dealer financing. If the dealer can’t meet or beat your best rate, you’ll have an alternative plan.

Car shoppers nationwide can use the power of the Internet to check local inventory and solicit offers from nearby dealers by using the automaker’s Web site. What makes the eBay program unique is the ability to bid on a product and watch market forces in action, or conveniently choose to “Buy it now.”

When buying any new car, whether at the dealership or online, through eBay or from a neighbor, focus on choosing the best car for your needs and budget. ConsumerReports.org has a variety of tools to help you make an informed choice, then empower you with the Consumer Reports Bottom Line Price from the New Car Price Report. 

—Liza Barth 

Preview: Buick plug-in hybrid SUV

As we’ve reported here before, GM’s two-mode plug-in hybrid will live on. The vehicle was originally expected to be called the Saturn Vue two-mode hybrid, but following the sale of the Saturn division to the Penske Automotive Group, GM now says it will rebrand the vehicle as a Buick. No word on what it will call the model, however.

The switch from Saturn to Buick will delay the vehicle by a year from previous estimates to 2012. GM says all the vehicles will be plug-in hybrids; there will be no standard two-mode version.

The vehicle was expected to be the first application of GM’s light, front-wheel-drive two-mode hybrid system. A full hybrid, the two-mode powertrain can power the vehicle on electricity alone at low speeds. The SUV is expected to have an electric-only range of about 10 miles, though the four-cylinder gas engine will start any time the car runs at higher speeds, similar to the way a Toyota Prius works. The two-mode hybrid system was obviously too precious to be tossed away with the Saturn brand.

In response to slow sales earlier this year, GM stopped building the current Saturn Vue hybrid, as well as the Saturn Aura and Chevrolet Malibu hybrids, which shared its mild belt-alternator-starter hybrid system. Conceivably, the vehicles could be revived if demand for them rebounds. However, in our testing, we found the fuel economy benefits to be modest compared to other hybrid vehicles on the market, including the Chevrolet Tahoe hybrid, thereby limiting their appeal.

If successful, a true plug-in could deliver impressive fuel economy. Priced right, it could be a popular alternative to electrified cars. As with the extended-range Chevrolet Volt, the price will prove critical to its success.

—Eric Evarts

Learn about driving green in the Consumer Reports special fuel economy section

GM leases select Buick, Cadillac, Chevrolet, GMC models

After abandoning leases when the economy swooned last year, General Motors is dipping its toes back in the water.

In a pilot program expected to run through August, the company will offer leases through U.S. Bank on the 2009 Cadillac CTS, and Chevrolet Malibu and Traverse, as well as on the 2010 Buick Enclave and LaCrosse, Cadillac SRX, Chevrolet Equinox, and GMC Acadia. Except for the SRX, the leases will only be available in five states: Connecticut, Michigan, New Jersey, New York, and Ohio. The SRX lease will be available nationwide. (Links point to the model overview pages, available to online subscribers.)

Consumer Reports rates most of these models highly, including the Buick Enclave, Cadillac CTS, Chevrolet Malibu and Traverse, and GMC Acadia. Reliability, however, has been mixed: Only the Malibu has been rated reliable enough with our subscribers to earn our Recommendation. New models from GM, including the Equinox, LaCrosse, and SRX, look promising, but we have not yet had a chance to test them, and their reliability record has not yet been established.

We welcome expanded financing choices for consumers who are interested in buying these vehicles, but caution that leasing is more expensive for most owners in the long run than purchasing a new vehicle with cash or financing.

Learn more about leasing from our car buying advice special section.

—Eric Evarts

Buick to rival Lexus; Cadillac takes on BMW – Will it work?

Some auto-industry experts, as well as some staff members here, have openly questioned the need for General Motors to have even four brands remaining in its lineup. After decades of watered-down, rebadged products, it’s hard to see what defines a Buick or GMC and makes them essential in the brand portfolio. Plus, why does GM need two upscale car divisions positioned above Chevrolet?

At one time, GM expected buyers to progress from Chevrolets to Buicks and Cadillacs, with stops in Pontiacs and Oldsmobiles along the way. But for myriad factors, the market no longer works like that. Today, most automakers succeed with just two or three channels divided along mainstream and luxury models.

It’s pretty clear that GM argued, and the government agreed, to keep Buick and GMC because they make money. But do they make sense in the long run?

GM executives have recently made it clear what Buick and Cadillac will stand for and what will set them apart.

In a Web chat on Monday, GM product and now marketing czar Bob Lutz said, “Cadillac needs to display the characteristics to permit [it] to rival the German luxury brands. It will be Buick's task to take on Lexus.”

The next day, GM VP Global Design Ed Welburn described GMC’s design mission as “industrial precision.” We’re not sure why Chevrolets shouldn’t benefit from looking precisely manufactured, but maybe that’s just us. At least, turning a Chevrolet into a GMC doesn’t cost a lot of money. As to Buick, it may have lost its luster stateside, but it’s a hit in the growing Chinese market.

What is clear is that BMW and Lexus vehicles cater to different groups of upscale buyers, though there is some market position  overlap. With the CTS, Cadillac has shown it can be competitive with BMWs. And Buick’s upcoming LaCrosse looks promising. But the question remains: can a single company go after the two sides of the same segment, without competing with itself? Likewise, is there enough to distinguish Chevrolet from GMC?

Post your thoughts in the comments section below.

—Eric Evarts

New GM to experiment with cars sales on eBay Motors

If you live in California, General Motors will have a new experimental program to allow buyers to purchase cars through an eBay auction. The company has signed an agreement with eBay, but few details are available.

The program will be run through California dealerships and include an option to buy the car at a fixed price.

This marks the latest manufacturer attempt to provide a way for consumers to buy cars directly off the Internet and avoid price haggling in the sales office. However, bidders may find dealers still try to sell extended warranties, fabric and paint protection, and VIN etching once at they arrive at the sales office to complete the paperwork. 

Previous efforts to allow consumers to buy cars directly through manufacturer or third-party Web sites were not successful. But dealers now have many years of experience selling used cars on eBay, so they may be more comfortable with this program. If the experiment is successful, GM hopes to make it available more widely, said GM CEO Fritz Henderson in a speech this morning.

Read: “What the post-bankruptcy GM means to you” and also: “Winning at eBay.”

—Eric Evarts

What the post-bankruptcy GM means to you

General Motors quickly emerged from its May 31st Chapter 11 filing this morning, benefiting from the Chrysler bankruptcy process before them and Auto Task Force drive to get the corporate giant back on its feet. The transition from old to new GM should be rather seamless for consumers, at least initially.

GM has culled four divisions from its portfolio and down the road it plans to significantly reduce its dealer body by not renewing franchise agreements. These 1,100 dealerships, representing about 18 percent of GM’s total dealers, will have until October 2010 to sell their remaining cars. The product line will drop from 48 to 34 nameplates in the process.

This Q&A addresses some common questions, and we will continue to provide additional insights and advice as General Motors and Chrysler both begin their new chapters. For more information, go to our Auto Crisis page. Also, learn how bankruptcy works.

Who owns the new GM?
Earning the nickname “Government Motors,” the American tax payers are the majority owner for the new company. GM ownership breaks down to:

• The United States government—a 60.8 percent stake
• A trust fund (VEBA) that provides medical benefits for United Auto Workers retirees—17.5 percent
• The governments of Canada and the province of Ontario—11.7 percent
• Bondholders of the old GM—10 percent.

What brands and models are available?
The new GM will include Buick, Cadillac, Chevrolet, and GMC brands. GM has stripped itself of Pontiac, Hummer, Saab, and Saturn. The latter three divisions are being sold to other companies, so those brands are expected to continue to be available in the United States. Future GM models include the Buick LaCrosse; Cadillac CTS coupe, CTS Sport Wagon and SRX; Chevrolet Cruze, Orlando, Spark, and Volt; and GMC Terrain.

Will I be able to get parts and service for my GM car?
GM dealers will continue to provide service, as before. Hummer, Saab, and Saturn dealers will be supported until the divisions are sold off. It is expected that most dealers will transfer their franchise agreements to the new owners, enabling them to continue without interruption. In emergency situations, most of these vehicles can be serviced at any GM dealer. Perhaps the greatest consumer impact will be the significant reduction in dealerships, making car maintenance less convenient.

Keep in mind that you don't have to take your car to a dealership for servicing, even if it’s under warranty. A good independent shop, especially one that specializes in your car’s brand, should be able to handle routine maintenance and many repairs. Moreover, independent repair shops are often less expensive than dealerships and, according to our Annual Auto Survey, generally provide a higher level of satisfaction. You will need to go to a dealership, however, for warranty and recall work.

Will GM still back my warranty?
Yes, GM will continue to support its vehicles’ warranties. Responsibility for warranties for Hummer, Saab, and Saturn will eventually transfer to the new owners.

What if I want to sell my GM car?
Models from brands that are being phased out or sold will probably see a drop in value. But if the company re-establishes itself as a strong, stable automaker in the future, ongoing models could see a rebound in value. If you plan to keep the car for a long time, depreciation is less of a factor.

Should I buy a GM car now?
No reason not to buy a Buick, Cadillac, Chevrolet, or GMC vehicle. However, there are some considerations when choosing from a lame-duck GM brand. For instance, the future of Hummer, Saab, and Saturn is not yet carved in stone. Even when it is, it is unclear who will support current versions of those products, or for how long. Sales of these divisions are in process. Pontiac is being phased out, and finding long-term support for its products may be more difficult than with other brands.

That said, GM is offering some tempting sales incentives on many of its models, including ones that we recommend. And with slow auto sales and too much inventory, dealers are ready to negotiate. So, it’s likely that you could get a very good deal.

Several recent GM models have done well in our testing and are very competitive in their classes. Consumer Reports recommends the Buick Lucerne V8; Cadillac DTS; Chevrolet Avalanche, HHR, Malibu, and Silverado; and the GMC Sierra. The Cadillac CTS, and GM’s quartet of three-row, crossover SUVs (Buick Enclave, Chevrolet Traverse, GMC Acadia, and Saturn Outlook) all did well in our tests, but are not recommended due to below-average reliability in their first years. (Links in this paragraph go to model overview pages, where online subscribers can review ratings, pricing, reliability, and road tests.)

It’s important to remember that any deal is only as good as the vehicle you’re buying. As always, we recommend that you thoroughly research the performance, reliability, safety, owner cost, and owner satisfaction of any model you’re considering. Subscribers to ConsumerReports.org have access to our Ratings in all of those areas.

What if I have a claim against GM?
Under pressure from the government and consumer groups, GM has agreed to stand behind product liability claims for all GM cars and trucks that are filed after the company emerges from bankruptcy. However, hundreds of consumers with existing personal injury claims against GM will be left scrapping for the meager remains of the old GM.

To get answers to the most common questions and concerns about Chrysler’s and GM’s bankruptcy and reinvention, check out our Auto Crisis hub.