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