GMC to Focus on Commercials, Not Commercial
By Aaron Bragman
GM is pretty fortunate to have kept the GMC brand during the bankruptcy proceedings of 2009. It almost didn't — when the government came calling, it saw nothing but trucks and figured that there was a quick and easy way to cut a big expense. Nobody wanted trucks anymore, right?
Wrong. GMC was then and continues to be one of GM's most profitable ventures, and it has grown every year during the last five in terms of sales. This is in no small part due to Americans' ongoing love affair with trucks and SUVs, despite fluctuating fuel prices, and it's especially due to the love for luxury trucks. GMC is considered by many to be a premium brand, and now the company intends to capitalize on that image to drive even more sales of trucks and SUVs. It is starting a new advertising campaign that emphasizes GMC's precision craftsmanship, supplementing the "Professional Grade" tag line the company has used for nearly a decade.
GMC will use sports figures from baseball and basketball to drive home the precision idea, tying the pro athletes to the idea that their precise control of the ball is something that jives with GMC's precision in creating trucks and SUVs. Two television spots are planned with this theme. A third television spot will promote another goal of the GMC brand: to boost Denali luxury sub-brand sales. Right now, 1 in 5 GMCs sold is a Denali, an expensive, well-appointed, luxurious version of trucks and SUVs. Some vehicles are primarily Denali-spec, like the Sierra heavy-duty pickup (more than 50 percent) and the Yukon SUV (60 to 70 percent). GMC wants to drive that take rate to 1 in 4 during the next five years, so it will air a new TV spot that focuses on the fashion industry, tying it in with Denali materials and style elements.
All of this represents a doubling of the investment that GM is making in GMC during the next few years, both in marketing and in product. Duncan Aldred, GMC vice president of sales and marketing, said that in terms of product, it's not difficult to see where GMC can flesh out its portfolio. There are areas in the midsize and smaller crossover segments in which GMC currently has no offering; those are ripe for GMC's participation. This could signify something along the lines of the old GMC Granite pickup concept shown at the 2010 North American International Auto Show. As for GMC's participation in the commercial vehicle sector, expect that to be deprioritized. When quizzed about when to expect something like a new Sierra 4500 or 5500 chassis cab, Aldred told PickupTrucks.com that products like that "aren't being ruled out, but they're a low priority for us at the moment."
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Comments
Sierra outsells Chevy trucks in Canada. Luxury options are one of the reasons. I don't think that we have the same hangups about Chevy versus Gov'mint Motors.
It does appear that Denali is being pushed as a brand. In some respects that is stupid as it could cause harm to a floundering Cadillac but then again, GM has a track history of doing that sort of thing. They don't have proper control of its divisions and those divisions behave like autonomous fiefdoms.
You would think they may as well just make it they're official truck brand period... Then Professional Grade would really start to make sense. That tagline would shine against the competitors more, instead of keeping its chevy versions a cut below and trying to explain the difference... Or maybe, its just me!
I have yet to see a Canyon commercial, but lots for the Colorado.
I think GMC will eventually be all premium pickups and CUV/SUV's. Not surprised they will probably not offer 4500/5500 commercial trucks, that market will be for Chevy. Notice that there is no GMC equivalent to the new City Express and the Colorado cab/chassis does not have a Canyon twin?
I sure wish GMC would offer a new midsized off-road capable SUV based on the new Colorado platform that would compete with the Jeep Grand Cherokee and Toyota 4Runner. All of the other car-based SUV/CUV's are for soccer moms.
I think GMC will eventually be all premium pickups and CUV/SUV's. Not surprised they will probably not offer 4500/5500 commercial trucks, that market will be for Chevy. Notice that there is no GMC equivalent to the new City Express and the Colorado cab/chassis does not have a Canyon twin?
Posted by: Big Bob
Yea, they could go that route... Makes sense, I see your point.
@Big Bob - I get that same vibe. Chevy as the poor man's truck and GM for those with money.
Idk, about poor mans truck as both of them exspensive... Just let Chevy bring home the bacon and GMC cook the bacon lol jk.
@Lou BC
I doubt GMC is harming Cadillac. Cadillac's SUV are killing it sales wise it's the cars they are struggling with.
@Jack - It could cause issues at Cadillac. I did not say it was. That is the risk with positioning Denali as one more high end player.
G.M.C. and Denali are my favorite G.M. truck. It looks bold and rugged. Like a chiseled athlete. Has a reputation for being reliable too. The G.M.C was the original G.M. truck brand. Being fourth in sales proves it's not how many you sell it's how much profit you make. G.M.C. is more expensive than Chevy. If I was in the 1/2 ton market G.M.C would be in the top two on my list with an 8 speed and 6.2 V8 with all the bells and whistles. Black and chrome 4x4.
G.M.C. and Denali are my favorite G.M. truck. It looks bold and rugged. Like a chiseled athlete. Has a reputation for being reliable too. The G.M.C was the original G.M. truck brand. Being fourth in sales proves it's not how many you sell it's how much profit you make. G.M.C. is more expensive than Chevy. If I was in the 1/2 ton market G.M.C would be in the top two on my list with an 8 speed and 6.2 V8 with all the bells and whistles. Black and chrome 4x4.
Posted by: HEMI V8 | Mar 5, 2015 1:25:30 PM
"Being fourth in sales proves it's not how many you sell it's how much profit you make"
This expains how Toyota views the truck relm. Toyota says they sell every truck they produce, which means profits regardless of sales.
Makes no difference to me cause the guy that owns the only local GMC Dealership is a scumbag.
I wouldn't care if GMC was the best and they were giving them away wouldn't set foot near that dealership!
Ford sells every truck they produce, FCA too.
Too bad this PoS was not allowed to go bankrupt. The world would be a better place
I think that is probably the best GM truck commercial I've seen in a long time. I still think they should bring back the " like a rock" commercials for chevrolets.
As i see more new GM trucks on the road I've grown more fond of the looks of the Chevy especially the HD Chevy.
I prefer the Sierra only in the monochromatic trim levels.
This is a smart move by GMC. They don't need to sell as many trucks and crossovers as long as the profit margins are higher. Chevrolet can be the work truck and lower level and it will make money as well. I still prefer the looks of the Colorado to the Canyon but I could live with the Canyon.
That was cool!!
It doesn't matter how much they spend on commercials or who stars in them , I still wouldn't but any generic motors truck..especially when there are 2 better options..Ford ans Ram
and
I think GMC is one thing GM has gotten correct.
It has been working out far better than the Buick and Cadillac names for the company.
I don't like the GMC grilles at the moment as they are just way to big and gaudy.
But yet they are selling.
If I were looking for a full-sized truck, I would be hard-pressed to choose between a Sierra and a Ram 1500, they're the two best-looking models available. On the other hand, I like the looks of the Colorado over the Canyon when it comes to large 'mid-sized' models and honestly I don't truly like the looks of either of the mid-'mid-sized' models.
But this article isn't about looks, is it? Or isn't it? Considering how similar the Sierra and Silverado are, there really can't be that much difference in their "precision", though GMC is trying to express itself through offering more high-end luxury and convenience over its Chevrolet twins. But to me this means GMC is moving yet farther away from its roots, when it was General Motors' true TRUCK brand for capability over luxury.
GM needs either a turbo diesel or a turbo charged gas engine, such as Ram and Ford, what's the hold up?
@toyota lol But Toyota's yearly profits are more than double Ford and FCA combined....
But what ever floats your boat
They make more profit because they use inferior parts, meaning cheaper. Rusting frames and everything else. Appliance king.
@Jep - Toyota is a huge global player. Ford does well globally and is considerably more profitable than either GM or FCA. Adding FCA profits to Ford's profits is a weak point since FCA profits are low. Its USA division is the only shining light in their current automotive portfolio.
@Big Al--Overall Buick is doing very well, maybe not as profitable as GMC but it is far from losing. Cadillac on the other hand needs a lot more work.
"It is starting a new advertising campaign that emphasizes GMC's precision craftsmanship, supplementing the "Professional Grade" tag line the company has used for nearly a decade." I don't the GMC is any more precision crafted than the Chevrolet, so whats the point? I have a 2015 3500 HD and the craftsmanship is excellent!
professional grade ? really...? then why did they COPY the ram interior....seriously ? gm has NO original thought but rather follow others. there trucks are overated and yes still overbaked....hence the gross wheel wells.
What is the name of that song in the new commercial? I know its from the 80's or early 90's....
GMC needs to remember what its brand has been built on, and remember what the true truck loyalist is. It is not the luxury truck buyer, that is for sure. One day the yuppies that buy $60K+ trucks will find a new fad vehicle to chase. It seems that the press is often driving companies to make trucks more and more high end. I don't get all of the gadgets in the vehicles being so popular, half the people today can't operate a computer or their smartphone efficiently, so how do they expect people to navigate the myriad of tech gizmos they are adding to these vehicles. Moreover, what are these trucks going to resale as in 5 to 10 years when all this crap doesn't work right. GM has alienated the commercial and work truck market, and this includes farmers and ranchers that actually use their trucks for their intended purpose. It is a rare site to see a new Chevrolet or GMC on the farm or the jobsite as a commercial vehicle. These days you see a great number of Ford and Ram trucks in these areas. GM has been very short sited in the last 15 or so years, and one day the political will to bail them out will have waned and the company will ultimately face its demise or be divided amongst the winners in the auto industry.
The song is The Who's ~ Eminence Front
Rob that tune was driving me crazy trying to remember! Love that song! Thanks
If GMC is so focused on "Precision"... they shouldn't air a commercial featuring a Baseball that they bought at Dollar General.
I live in the south and would like to see some more truck commercials about towing hauling and off-roading. Fit into the hearts of Americans that keep the country rolling. Ranch hands pulling vehicles out in the snow there's just so much to work with and yet little is being done. I love my truck just would like to see more effort into mass advertising to please not only consumers but potential buyers.
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