Updated: GM May Drop GMC Brand

GM May Drop GMC Brand

Update #1 April-16-2009 20:00 PDT:
GM has no plans to retire or drop the GMC brand, said Mark LaNeve, GM's vice president of vehicle sales, service and marketing, in an interview with Automotive News.

Reports that "GMC is going away are just unfounded, unsubstantiated and untrue," LaNeve said.

[Source: Automotive News]

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Bloomberg is reporting that General Motors could drop the GMC light-truck brand, along with Pontiac, as part of GM's deep cost-cutting and restructuring moves necessary to receive federal government bailout funds. If GMC were to disappear, that would likely mean the end of the full-size Sierra and midsize Canyon pickups. Only the Chevrolet Silverado and Colorado trucks would remain in GM's North American product portfolio. However, a Bloomberg source close to the discussions said GMC has a better chance of surviving than Pontiac.

In 2008, GMC sold 168,544 Sierra half-ton and heavy-duty pickups. That's more sales than Mitsubishi's entire car and truck lineup in North America — 163,418.

[Source: Bloomberg]

Comments

GMC trucks are badge engineered Chevrolet clones.

freethinker,
maybe so, but for the most part I think they are better looking other than the Yukon.

Can someone explain to me why GMC even exisit? What is the point of gmc pick up over chevy?

I think this is a very good idea for GM. I mean yeah sure, they won't beat out the f-series in overall sales anymore, but who cares? At least now they only have one truck company to focus on, and besides chevy outsells GMC 5 to 1 anyway, maybe more than that.

Sure get rid of your second best selling brand. Sounds like a stellar way to increase profits. I know a lot of people that own GMCs who won't have anything to do with Chevy. So if GM and those idiots in DC think that people who own GMCs will just buy Chevys they better think again.

Rather than dropping the entire GMC brand, I think GM should drop a few of the GMC models that they currently have. Maybe drop one of the Denali models from the Yukon lineup, or maybe drop either the Yukon or Yukon XL. And while there are people out there that like the Acadia and Savana fullsize van, drop both of em, and let Chevy have that part of the market.

Anyone who would own a GMC and NOT buy a Chevy sounds like a moron to me BECAUSE THEY ARE IDENTICAL! Except for a few trim bits, they are the same vehicle. It's time for the American companies to kill off redundant brands and focus on doing ONE brand really well.

GMC should be the truck company and Chevy should just be a car company. And yes GMC is better looking than a Chevy clone.

unfortunately there are so many things that go on inside the company that someone looking in from the outside could never imagine.

i believe everyone has a valid point here, yes, general motors tries to sell more cars by rebranding identical platforms under different names- but they are still the same platform. the 'trim bits' will not save general motors the millions they need to stay solvent.

what is destroying gm in my eyes is the lack of foresight. it is easy to get caught up in a booming economy, but any good leader would know that boom years lead to bust and preparing for the bust during the boom is the only thing yo ucan do expect to make your way out.

you can trim brands all you want, you can trim production all you want- you will never make up the losses because you are paying legacy costs that you cannot make enough profit to cover anymore. you close plants, lay off thousands of workers and the UAW/CAW expects you to make all pension payments- well with what funding?

you could argue that a retired gm worker, living off pension and making small income tax payments could essentially keep the money in his own pocket and save it a trip- because that is what the bailouts are going to- making pension requirements and payroll.

i think the UAW/CAW needs to realize that unions served a purpose during the industrial revolution when working conditions were poor and employers were merciless- but in todays economy, the government has implemented civil rights that protect workers, and in my eyes makes a union redundant. unions have in effect destroyed the very company of the employees they were trying to protect- bravo, they should be commended

if washington does anything, they should take rights away from unions and let the business make the best decisions for its future so it can run in a purely competitive environment and try to rebuild from the hell that was created around it, not by it.

are you crazy gm is the car history.....

if you dont like the chevy front grill you get a gm....this is the diference....

Anyone who won't buy a Chevy instead of a GMC is not thinking straight. Does the different front grille and GMC emblem on the tailgate and steering wheel vs. Chevy make the GMC that much more better looking - get real people. Many years ago, they were considering dropping GMC entirely and should have done it back then in the 90's if GM was smart. Well, look what it got them now - close to bankruptcy and looks like it will happen in some form come June 1st. I even know Chevy dealers who had the GMC emblem come in on the tailgate instead of Chevy written on the tailgate. Doesn't that show you that GMC and Chevy are built on the same assembly line? Lets face it, GM is the ONLY car company that has way too many redundant divisions that produce the exact same car just in a different cosmetic makeup. Face facts please!

I called it a long time ago. GM would shrink it's brands to just Chevrolet, Buick and Cadillac. It's a good idea. If the GMC sales shift directly to Chevrolet trucks, then F-series will not be number one in sales, even though I think the F150 is the better truck.

Apparently some people can't read too well. If you had read the UPDATED article it clearly states that GM will NOT kill off the GMC brand!

Actually, it says that GM says that GM will not get rid of GMC. It wouldn't be the first time a car company lied about future plans. They don't want to discourage people from buying a new GMC for fear they won't be able to get service or parts. (which of course is silly, they will just need to go to a Chevy dealership)

Some of you guys need to switch to decaf. Lets not forget that some of these posts were made before the update.

The GMC brand is there for the Pontiac, Buick etc dealers to have a truck to sell. A lot of Pontiac dealers sell GMC trucks.
Yes there is too much overlap, same vehicle, different grille, trim angles, etc.

GM will fill bankruptcy, the unions will be dissolved and a new GM will emerge with Chevrolet, Cadilac and Buick much like you have Ford, Lincoln and Mercury.

GM will file bankruptcy, the unions will be dissolved and a new GM will emerge iwth Chevrolet, Cadilac and Buick much like you have Ford, Lincoln and Mercury.

Cue horn....

http://www.youtube.com/watch?v=1ytCEuuW2_A

GM's spokesperson, Mark LaNeve, VP of Sales, is lying. According to the WSJ GM said they will drop the GMC brand and it's clearly articulated in early copies of the report that GM circulated on Capital Hill. I'm not surprised that a GM person is lying especially a GM sales person. Kiss GMC bye-bye.

There's more than an "emblem swap" on the current generation Tahoe/Yukon and Silverado/Sierra siblings. They all have entirely unique faces. Visually, the Silverado and Sierra only share the cab, roof, and tailgate...they even have unique bedside panels. In fact, I chose a 2008 Sierra over a 2008 Silverado because the GMC looks less "bulgy and exaggerated" in the front. Look again if you are not convinced, but side by side, looking at their faces, the Chevy looks wide-and-grinning while the GMC looks more upright and formal. Plenty of other folks recognize the differences and are drawn to one vehicle or the other. Finally, it is no secret that GMC sells well, requires little investment, and has a place in the market.

Hey Jason,

Not so, GMC and Chevy have the same engine and transmission and sheet metal. I think your eyes are deceiving you because the front grille looks different and that is probably why you think the body side panels are looking different. Go ask a Chevy or GMC sales manager and they will tell you they are basically the same engine, body, and transmission except for emblems and front grille.
I have known Chevy and GMC for over 20 years and if they were just Chevrolet, Chevy would be #1 in truck sales finally surpassing Ford and then maybe Chevy could get some bragging rights as the best selling truck in the USA.

Cut the GM brand and Chevy Silverado will be #1? Not so according to Business Week.

"James N. Hall, principal of auto consulting firm 2953 Analytics, says research shows that the second choice among buyers of GMC's Sierra full-sized pickup—which sold 170,000 copies last year—is not its stablemate, the Chevy Silverado, but Ford's F-150 pickup."

If they cut GM brand, they will lose market share. The more brands you cut, the more market share you lose. And Ford will gain market share.

http://www.businessweek.com/lifestyle/content/apr2009/bw20090417_332014.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis

mk:

While the older GMC trucks shared bumpers, hoods, wheels, and bedsides, my comments are in regards to VISUAL distinctions between the current generation Silverado / Sierra. Now, visially, the cabs (roof/windshield/doors) and tailgates are the same...otherwise the Chevy & GMC are uniquely styled. It's subtle, but more obvious when they are close together. Now try it again...go look at them in person, and notice how the Silverado's front and rear fenders have pronounced horizontal bulges, creating a charachter line that sweep back. The GMC has smooth, rounded arches surrounding each wheel opening. Unique hoods, even tail lamps are different. Additionally, there is a visual sense of width across the Chevy face...perhaps due to the wider grille opening and visually "heavy" body-colored front bumper end caps. Cut & paste these links for a quick reference:

http://www.citychevrolet.com/blog/uploaded_images/2009-Silverado-Hybrid-703935.jpg

http://www.thetorquereport.com/2009_gmc_sierra_hybrid.jpg

John is right. The GMC pick-up allows a Pontiac, Buick, or cadillac dealer a pick-up to sell.

Why don't they drop chevy trucks and let them just sell cars and keep GMC and let them sell trucks?

Scott,

It's hard to imagine that the F-150 is the second choice among people who own GMCs Sierra, and not the Chevy Silverado. And I hate to admit it, (considering I've always been a Chevy guy) but while I'm not too crazy about the new frontend look of the Ford F-150, I have been considering buying an F-150 the next time I buy a truck. I think another reason for considering a Ford is they have some nice colors to choose from unlike GMs choice of bland colors.

THE ONLY POINT OF GMC WAS TO GIVE THE PONTIAC DEALERS PICKUP TRUCKS. GM NEEDS TO GO BACK TO DOING WHAT THEY DO BEST, MAKE CHEVY'S AND CADILLACS.

IF you guys look at the sheet metal you will notice that GMC and Chevy are different with the 07+ models.

The GMC looks much better to my eyes than the bulging Chevy.
Choice is good. Go ahead and drop Pontiac keep GMC because the new Chevys are ugly.

I understood that Chevy trucks were re-badged GMC's and not the other way around -- but the point is moot. There are only visual and brand differences that include the lowest-cost styling distinctives. However, this is not a good reason to drop one brand -- on the contrary it's a good argument that dropping the brand would save no real cost. On the other hand, dropping the brand would cost a small fortune in payouts to dealerships. There are very few Chevy/GMC dealerships. Typically, dealerships are either Chevy or Buick/Pontiac/GMC. A Buick dealership is not viable on it's own, and converting GMC dealerships into Chevy would oversaturate the market. The bottom line is that the trucks and SUV's are a profit center and GM can't survive if they burn their dealer networks.

A Buick/GMC dealer has everything except the Corvette, Camaro, HHR, and the subcompacts. It's nice when you can sell 'vettes and Camaros. Caddy's are nice too but they're not too many people's bread and butter. If I was a GM dealer and you took away my pickups, I'd tell you to shove it.

Fellas, the only difference between Silverado and GMC are the Front Clip and the Bed. The Cabs are the same. You take the front end off the Silverado and put it on GMC, but you going to have to change the bed too, cause the shape is different. Now as far as the inside the cab is alittle diferent such as the Dash Cluster. But is still both GM Product. Chevy been around and now the Cousin GMC. You can put a Cadillac front end on these Truck too... Funny isn't it...I have a friend who has a 97 Ford F-150 extended cab and put a 1948 Ford front end on and it work,,,anything is possible...Keep on Truckin!!!!

I think both Buick and GMC should both be dropped they are little more than Chevrolet clones!

i say drop both Buick and Gmc they are little more than Chevrolet clones



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