GMC has been on a roll and it has little to do with electrification. The General Motors brand has done an about-face, revitalizing its business in the wake of a laundry list of complaints from professional evaluators when the current-generation Sierra 1500 full-size pickup truck debuted in 2018 and despite having two aging SUVs in its lineup: Terrain and Acadia.
Though the battery-electric Hummer EV and Hummer SUV are part of the GMC portfolio, the brand renaissance comes from a point deeper within General Motors, the brand's parent company. Investment in design changes have allowed GMC to not only clean up previous ills, but elevate the brand in the minds of consumers. All this in a four-year period, during a pandemic, up against a semiconductor chip shortage.
"The driving factor behind the success of GMC's strategy in the truck space has been the voice of our customers," Patrick Finnegan, GMC's senior marketing manager, told Newsweek.
That voice recommended elevating the Denali sub brand even higher, a move GMC undertook with multiple vehicles now available in the range-topping Denali Ultimate trim level.
"GMC's Denali and AT4 lines are highly aspirational and represent a rich mix of sales within the portfolio. The long-standing Denali line continues to bring near-luxury refinement, paving the way for a pivot to premium capability through the more recent AT4 sub-branding that continues to proliferate the lineup. Denali Ultimate and AT4X push transaction prices further upmarket and prove we have yet to hit the ceiling on how much pickup and SUV buyers are willing to spend," Paul Waatti, manager of industry analysis at AutoPacific, told Newsweek.
In 2022, GMC celebrated it best year ever for market share and brand health, it says. It is the only company with five consecutive years of truck brand growth.
Yukon and Acadia SUV sales hit highs with the Yukon XL having its best sales year since 2007 and Acadia up 37 percent year-over-year.
J.D. Power awarded the Sierra its top spot in dependability and GMC reached its highest customer return-to-brand rate ever, 44 percent.
"The GMC brand is a vital artery to GM's overall financial health. Though Chevrolet dwarfs GMC in sales volume, GMC brings larger-than-life profits, primarily derived through alluring sub-brand executions that have become case study worthy and foundational to its success," said Waatti.
This year's additions to the lineup range from the Canyon midsize pickup truck to the Hummer EV SUV. The Canyon stands head and shoulders above its predecessor thanks to technology and appointments that have filtered down from the larger Sierra 1500.
It also wins because of its new off-road capability, going after a space similar to where the Sierra 1500 AT4 and AT4-X play, but in a smaller package. There's also the full-on off-roader stylings of the Canyon AT4-X AEV, which pushes the limits of the truck even further with specialty equipment.
"Every time we speak with GMC owners it is clear that real capability, bold styling and purposeful technology are at the top of their list of demands for our trucks. As you know, we debuted the Denali sub-brand over 20 years ago which represents the pinnacle of premium for a GMC. And, more recently, through the strategic deployment of Denali Ultimate on Sierra and Yukon, we have taken those premium appointments even higher.
"Couple that with the introduction of the off-road-ready AT4X trim across our truck lineup, we feel confident that we not only meet GMC owner expectations, but exceed them," Finnegan said.
Not all is rosy for the GMC brand in 2023. Deliveries of the GMC Hummer EV and Hummer EV SUV have been off to a slow start, even with order banks filled with hand raisers. Around 50 of the trucks have been turned over to customers year-to-date.
Industry watchers expect more of the same from the GMC playbook when the next-generation Acadia debuts later this year. The SUV is set to pull from the GMC finishes parts and technology parts bin, which will be a welcome change designed to make the SUV better compete with its premium rivals.
The GMC Sierra EV will launch soon, bringing together the electric world of the brand with the truck side of the business.
"GMC carries enough cache to roll out wild products like the Hummer EV Pickup and SUV, which have stirred up significant chatter in the EV world despite being more or less expensive technology examples. Arguably its next EV, the Sierra EV, is an even better fit than Chevrolet's Silverado EV for early success in the more traditional full-size EV pickup as GMC's buyers are already on the more affluent side and are seeking the latest and greatest technology," Waatti said.
"A new Acadia is on the horizon, and importantly, this next generation should be even more competitive in the premium three-row segment as it reverts to a longer wheelbase shared with the Chevrolet Traverse and Buick Enclave. The Yukon and Yukon XL refreshes are slightly delayed but are on track to launch next year as 2025 models.
"Still, GMC cannot afford to rest on its laurels. Many other brands are riding the wave of increasingly popular higher-end and off-road offerings flooding the market quickly. Brands like Jeep, arguably even more aspirational than GMC, continue pushing the limits on transaction prices, refinement, and interior execution."
