GMC Benefiting Big Time from Uptick in Luxury Truck Popularity
As luxury vehicle shoppers gravitate increasingly toward high-end trucks, brands like BMW, Mercedes-Benz, and Lexus are being left in the dust. No brand is benefitting more from the decline of the luxury sedan and rise of the luxury pickup and utility vehicle than GMC, which pulled in an impressive 11.3% of all sales of vehicles with price tags of $60,000 or higher last year according to data from Edmunds.
This data showed up last week in a New York Times article chronicling the upward trend in high-priced luxury pickups, SUVs, crossovers. GMC is the single greatest example of this trend—in 2012, GMC sales made up just 0.1% of all $60,000+ vehicle sales, and its 11.3% share last year outranked Chevrolet, Porsche, and Lexus.
GMC experienced a record year in 2017 from its Denali sub-brand, which made up 29% of all sales; four GMC products—Acadia, Sierra HD, Yukon, and Yukon XL—had 30% or more of its sales come from GMC’s highest-priced option. GMC reported average transaction prices (ATPs) at $43,800 in 2017—up 35% from 200700—and data revealed at an investor conference showed Denali ATPs sitting at $56,000.
“This thing is a money machine,” said General Motors President Dan Ammann of the Denali brand.
Denali promises to be an even bigger money earner in years ahead with the launch of the next-generation GMC Sierra. The 2019 GMC Sierra is set to bow next month, and General Motors has already indicated that the new trucks will be more profitable than the current gen.
News Source: The New York Times