Luxury buyers have begun to move in the same direction the greater auto market has in recent years. More luxury-vehicle drivers are purchasing premium pickups than ever, and they’re ditching their BMW, Mercedes-Benz, or Lexus sedan for a big ol’ pickup truck.
That isn’t more evident than at GMC. The New York Times reported last Thursday that a shift from luxury cars to luxury trucks is well underway. Tom Libby, an industry analyst from IHS Markit, said the shift is now prominent in consumer behavior as dealers take in trades on luxury sedans and pickups leave dealership lots.
The news couldn’t be better for General Motors and the GMC brand. In 2017, the brand accounted for 11.3 percent of domestic sales. A small number, but it’s not so insignificant when looking back five years ago; GMC accounted for just 0.1 percent of domestic sales in 2012.
During an investor conference, GM President Dan Ammann said there are plans to produce more Denali variants of its GMC vehicles, which hold an average transaction price of $56,000.
“This thing is a money machine,” Ammann said regarding the Denali sub-brand.
Profits should continue to soar as GMC prepares to unveil the 2019 Sierra next month alongside a new Sierra Denali. GM previously said the new pickups will be even more profitable than the current vehicles.