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Buicks First Minivan Targets SUV Buyers with the Need for Space

Terraza Joins Saturn Relay and New Vans from Chevy and Pontiac

WARREN, Mich.--After years of offering vans with noncompetitive interiors, General Motors says it is getting serious about improving its position in the mid-size van market with two new entries, the 2005 Buick Terraza and Saturn Relay.

The introduction of the two vehicles, the first vans for either brand, was held December 4 at the Stage Three Productions facility on the grounds of the former Warren (Mich.) Tank Plant, where military vehicles had been produced since World War II to the early 1990s. The debut of the vans was also broadcast live on the Internet for journalists around the globe.

The Terraza

Bob Lutz, Product Development and Chairman, GM North America, sits back as Buick General Manager Roger Adams talks about the attributes of the 2005 Terraza mid-size van on the left. The Terraza is Buicks first minivan and its third entry into the light truck market. (Photo: Joe Cabadas, American Auto Press)

and the Relay are vehicles that GM calls "mid vans" or "crossover sports vans" (CVS), a new approach to a segment currently occupied by the aging Chevy Venture and Pontiac Montana, as well as the outgoing Oldsmobile Silhouette. The Venture and Montana

GMs consummate "car guy," Bob Lutz, tells journalists that the goal of new Buick Terraza minivan, which he is standing next to, and the related 2005 Saturn Relay is to achieve higher sales volumes and better margins than the outgoing Chevrolet Venture and Pontiac Montana vans. (Photo: Joe Cabadas, American Auto Press)

will also be phased out and replaced with vehicles built off the same platform as the Buick and Saturn vans.

"These vehicles represent a substantial upgrade from the vehicles that they are replacing," said Robert A. Lutz, Product Development and Chairman, GM North America. "I can honestly say this is one of

With its ability to carry seven people and plenty of cargo, the Terraza crossover sport van (CSV) completes Buicks truck lineup. (Photo: General Motors)

the best mid van interiors in the business. They look very European and very carefully crafted.

"I think weve gone from the current GM T200 interiors... that was without question the weakest part of the (Venture and Montana) and noncompetitive. Now we have gone to a better than competitive interior."

GM currently holds 20 percent of the mid-van market--a 1.1 million unit segment of vehicles priced between $21,000 and $30,000. The Relay and Terraza will be competing against the Honda Odyssey,

With the Relay, Saturn hopes to intercept many first-time buyers to the mid-van segment and attract those who might be interested in an import brand. (Photo: General Motors)

Toyota Sienna, Chrysler Town & Country, Dodge Grand Caravan, Ford Freestar, Kia Sedona, Mercury Monterey, Nissan Quest, and Mazda MPV.

"Terraza positions Buick in the growth area of the mid-van market," said Roger Adams, Buick general manager. "Although the overall segment has declined slightly the last few years, sales of $30,000-plus vehicles have grown from 19 percent to 24 percent of the mid-van market."

With its ability to carry seven people and plenty of cargo, the Terraza crossover sport van (CSV) complements Rendezvous and Rainier in the Buick truck lineup by

With a raised hood and a high-set grille and headlamps, the new vans have a very SUV-like apperance. (Photo: General Motor)

combining SUV features, like bold front-end styling, with the functionality required by customers in the mid-van segment.

The Relay, on the other hand, finally provides Saturn customers with a seven-passenger vehicle, said Jill Lajdziak, Saturn vice president for sales, service and marketing. "It will appeal particularly to those customers who need the versatility of a mid van but have a strong preference for SUV styling."

With the Relay, Saturn can intercept many of the first-time buyers to the mid-van segment and attract those who might be interested in an import brand, she said. "Import mid-van buyers on average are younger and more affluent; more than 70 percent have children

Utility bars attach to the factory-installed roof rails provide a new level of convenience. (Photo: General Motors)

under age 16, versus approximately 50 percent for domestic mid-van buyers."

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