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Granite Cancellation Means GM Still Confused About GMC. Or Is It?

In January, we reported that General Motors cancelled plans to build the GMC Granite. While not many details were available about the decision, GM Authority sources say that the primary reason was a considerable amount of negative feedback from existing GMC (truck) owners, who didn’t want to their trucks being associated with an “econobox” that would result in delivering Scion buyers to their otherwise “rough-and-tough” brand. But perhaps the bigger concern for GM enthusiasts isn’t whether or not the Granite was a good fit for GMC… but why it wasn’t a Chevrolet to begin with.

If it weren’t for the existence of GMC, I’m willing to bet that we would already see a Granite-like vehicle wearing the golden bow tie. This “spreading of the models” among GM’s (remaining) brands has never done the automaker any good. Such fine examples as the Cadillac Cimarron and Catera as well as the Pontiac G3 and G5 come to mind. None of those were good vehicles… and none were absolutely necessary for the success or effective continuity of each brand. They were, however, introduced in a forced sort of way that didn’t add value to anyone; if anything the additional sales generated with these vehicles detracted from the main purpose of each brand. Fast forward to today and the writing seems to have been on the wall all along: Pontiac is gone, Cadillac is only now recovering.

Now, there are those who would, in all seriousness, tell me that the Granite would have done wonders for GMC and would have brought younger buyers into GMC showrooms. Surely, the younger buyer is something GMC desperate needs for continued success… right? Wrong. Who says that GMC even needs to cater to a younger demographic? The brand has, through the years, established its “Professional Grade” image and is very profitable at serving its current customers. Why mess with a proven, working formula for the sake of a low-cost, low-margin product like the Granite? Is alienating the core truck buyer to attract a less lucrative customer really that important? Or can it instead be made a Chevy while not putting a damper on Big Red’s overall tough image?

But forget about profitability, numbers, or the business side of the automotive equation and riddle me this: who in their right mind believes that the Granite would have been a natural extension of GMC? The vehicle — if produced — would still have competed with the likes of the Kia Soul and Scion xB and xD. These brands are either known for these kinds of products (Scion) or are attempting to become a full-line automaker (Kia). GMC is neither.

That is to say that an average consumer knows that they can find an entry-level compact vehicle from Kia and Scion. Not so with GMC — as most people think of SUVs and trucks upon seeing the three big, bold, red letters. This, again, brings us to the question of whether it’s even worth it for GMC to effectively trow away its current customer base and reputation known for durability, toughness, professionalism, and perhaps even masculinity — for a “look at me I’m so trying to be cool in my sub-$20,000 boxy box”. Not worth it. Not even close.

The question that perhaps most effectively allows us to understand the real problem with the Granite is the answer to this question: why was the Granite not a Chevy? The answer? Because of the existence of GMC and the pressure to supply the niche brand with new product.

Take the Granite, change up the styling, and make it a Chevy. Sell it worldwide — unlike the Granite, which would have been limited to North America. The result? An instant competitor to the Kia Soul, the Scion boxes, and maybe even the Honda Element. Perhaps the Granite’s cancellation means that GM is no longer confused about GMC and its purpose. We certainly hope that’s the case.

GM Authority Executive Editor with a passion for business strategy and fast cars.

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Comments

  1. Great article, could it be GM is confused across the board without its other niche brands, Saturn/Pontiac either of these brands could have taken in such a vehicle. I wonder how this impacts GM stock, do investors say oh look we wanted GM to get rid of all these brands but now it doesn’t have the niche brand like a Toyota with Scion. My guess is GM misses it some Saturn or Pontiac. Personally I think it’s better leaner and meaner, but if I was a Chevy dealer I might get insecure trying to stock every product under the Sun. Maybe bring Saturn back as a subbrand at Chevy dealers have 2 to 3 nich cars and call it a day. I want a Granite though, personally one of the best looking cars of its type GM has designed… Come on GM get it straight, if your going to go down the path go down the path…

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  2. If anything, bring back Pontiac. The Granite would have made a sweet little ride in Pontiac’s world. Have PN as a niche sporty/street brand. It would only need 3 or 4 rides, Have the G8 brought back and updated, resdesign the granite, redesign the Solstice and make it more performance and edgier looking like the Saturn Sky and give it the 2.0L turbo from the regal GS, and the 2.5 keep rwd, then have the trans am and make sure it looks completley different from the camaro.

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    1. Good job! You’ve just made an unsellable range of cars that few people actualy want!

      Sport is dead (unless you have the money for it) and driving is a chore.

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    2. g8, g6, sky, granite. that would be the lineup that sold well.

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      1. G8 and Sky were very limited in their sales success… so all you’re left with is the G6 and the Granite…

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  3. The Granite simply didn’t make sense as a GMC.

    When I think compact car, GMC isn’t in the cards.

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  5. I don’t think the idea of cutting the granite is a good idea at all

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    1. Care to elaborate any?

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      1. Because I have thought that if this goes to Chevy, it just don’t look right.

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  6. I think that the Granite itself is not a bad concept, having a small boxy CUV to add to the GM line to fill the niche vacated by the HHR and Vibe, but I agree that trying to shoehorn it into the GMC line would have been awkward at best and could easily have been a misfire. It does seem like something that with minor styling changes could have been easily made into a Pontiac, and perhaps even a Saturn. I get that they don’t want to overcrowd Chevy dealerships with overlapping models, but I think GM is stubbornly clinging to their belief that they can upsell people in the CUV category to an Equinox instead of offering a Captiva, a Cruze wagon/hatch, or a Granite. I guess in this compact category, though, that the Encore probably is a safer bet for GM.

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    1. “Upsell” people to an Equinox? Spot on. Here’s a former Saturn customer who would like to buy a GM product. But as the lineup stands today – even with the information made public on future cars – none of the GM brands make the list. I see a GM that hasn’t changed, a GM that would rather sell as much steel as possible rather than produce more refined cars that are nimble, rich in features, utility, and comfort.

      I think the problem is that the American public has been just as slow to change. Americans would rather complain to their politicians about gas prices rather than give up that Suburban or Silverado for a more efficient vehicle. The result — even with all of its problems, Europeans still get the best cars. They get the diesels and the hatch/wagon variants that have utility without sacrificing the driving experience. It’s nauseating.

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  7. I agree with making gmc Gm’s jeep

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    1. GM had a Jeep it started with ‘h’ and ended with ‘ummer’ and obviously they didnt want it anymore so they axed it ohwelli if you want a good gm four-by get an old jimmy or blazer

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  8. i never saw it as a compact car more of a small crossover. seriosly though awd and a few more innches in ground clearence and it would have rocked and i dont think its a good match for chevy it would probably just look like a sonic on steroids (uuugghh) i am all for this as a gmc

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    1. It’s a Cruze with a higher roof and trick doors. What’s the purpose of making a crossover of it when there is a clear market for tall hatches (Soul, Scions, etc.)?

      Do you think people would really think of GMC when they’re in the market for such a vehicle? Probably not. It’s a much more natural extension to think “Chevy”.

      Perhaps my biggest gripe with the idea of a Granite is that it continues to detract from Chevy as a full-line automaker/brand.

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      1. But wouldn’t you think it would look weird if Chevy makes it?? hints: curvy lines with higher roof and trick doors?? Because the Scion XB is just a boxy Corolla with high roof according to how you criticize the Granite.

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        1. i agree it wouldnt look good as a chevy i think it looks the best as a gmc and i dont see why people cant get away from that “it doesnt fit with the brand” thing it totally does in my mind and i think they refered to it as an ‘urban utility vehicle’ when i read gmc’s right up on it

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        2. @Vic No, I wouldn’t think it would “look weird” at all. It wouldn’t be expensive or time-consuming to give the Granite a new look (skin). In fact, I’d bet you that there were (are?) plans to make a Chevy variant all along.

          Furthermore, I’m not “criticizing” the Granite for its high roof — I’m stating a fact. It’s a high-roofed Cruze with some modifications. Platform is identical.

          @Chevtothemax We haven’t yet seen any variations OTHER than the GMC version. How can we decide which looks best without seeing it?

          And what is an Urban Utility Vehicle? Seems to be a marketing concept created solely for the same of positioning. Would consumers actually think of this thing as an Urban Utility Vehicle? Or would they cross-shop it with other “tall hatches” like the Soul and Xb?

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          1. I just think that they should build it to catch owners of cars like Element (this car is discontinued), XB, etc.

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            1. They just need to fill the segment. That’s what a full-line maker does, among other things. There is a clear and definitive customer to be served here…

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      2. ALEX YOU NEVER TOLD US YOU BOUGHT A 2012 MUSTANG?

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        1. Hey, it’s an expensive way of keeping tabs on the competition 🙂

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          1. I didn’t tell a soul lol 🙂

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  9. GMC is just a brand GM forgot to kill off.

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  10. Alex you just hit the nail.

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  11. And while we say “Make GMC GM’s Jeep” what exactly do we mean? As far as I know, Chrysler’s Jeep is and already HAS gone towards diminutive vehicles that muddy the brand’s image. Take the Jeep Compass for example. It’s essentially a hatchback. It’s very similar in design and build to the Dodge Caliber. To make matters worse, the base model of the Compass was FWD! They did make an AWD version, but the idea that Jeep had made a FWD-only vehicle (a first for the division) was still in everyone’s minds. The Jeep Compass is to Chrysler what the GMC Granite would have been to GM.

    GMC could be like the OLD Jeep. The days of the Cherokee and Grand Wagoneer and back when then parent AMC had a line of Jeep pickups come to mind. But if it’s Jeep today, then they’re going the direction of the Granite, and that’s a big mistake. The only kind of compact CUV or vehicle I could see coming from GMC has to be something similar to the Suburu Outback or Baja “sedan utility” (Did I just coin that?), or for that matter resurrecting the Caballero. It has to have a truck/SUV image and not look like a hatchback or city car. Doing anything Granitesque just is plain nuts.

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  12. I don’t care what badge it wears, I’d like to replace my ’02 PT Cruiser with something American. I love the Granite’s styling. I was able to get 30mpg and am nearing 200K miles. It’s capacity and versatility were remarkable. I don’t want a Soul or Outback. I’d like AWD, but not at the expense of mpg. I enjoy driving and like to travel, and want room to haul my gear. Since I heard the Granite was cancelled I’m having to consider whether to rebuild my engine or buy a new car that isn’t as appealing.

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  13. As a person who makes his living selling and managing Buick and GMC inventory, I have mixed feelings.

    Although I think the Granite design is cool, it would have competed for many of the same consumers who will be considering the new Buick Encore. We didn’t need both.

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  14. “an electric vehicle like the granite but it would need awd, atleast in a denali version and i vote for it to be called the tungsten” a quote of myself on another blog.

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  15. Why can’t GM just soften the Granite lines a bit and lower the front end to give it more of a car-like appearance rather than a mini-truck? I think that would be a very appealing Chevy. It would not compete with the Encore, which is supposed to be in a luxury class.

    I just don’t understand how GM could eliminate its mainstream brands and then leave gaping holes in the Chevy lineup. Makes no sense. Any GM insiders out there want to explain this strategy?

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    1. You couldn’t be more correct. And the strategy seems to be that there is — in effect — no strategy. They’ll fill the “obvious” segments (subcompact, compact, midsized, full-sized) in sedan, miss some in utilities (compact CUV, anyone?) and totally ignore the hatch market (outside of the Sonic). This seems to be the case for now, as unfortunate as it is.

      No wonder Ford outsells Chevy every month.

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      1. I think one of GM’s problems is that they are making some truly competitive entry-level vehicles, they understand trucks and full-sized SUVs, and they’re getting a handle on luxury, but it’s that second tier of vehicles… the midsized cars, the compact SUVs, the crossovers and wagons, the types of vehicles the thirtysomethings want to buy, where they are going to lose market share to the competition. Killing both Pontiac and Saturn, although fiscally responsible, also killed the two divisions that I would assume skewed to the youngest buyers.

        I also wonder if the Granite might have originally been a concept originally designed for Pontiac that got foisted onto GMC because they couldn’t figure out where else it would fit? Seriously, though, with some minor changes, Chevy could make this into a next-gen HHR designed to target the Soul/Element/Cube niche rather than the PT Cruiser.

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        1. Yeah, we’ve seen the re-propriation of models before with the “New GM”. Remember the Torrent? Its replacement was the vehicle we know today as the GMC Terrain. The same goes for the next-gen Aura: that’s the Buick Regal.

          I think that needs to stop in its own right. Buick and GMC need to stand for something — like Chevy and Caddy do today. They need to deliver a clear and consistent message to the customer, which doesn’t really happen today.

          In any event, it would seem that the Cruze hatch would be more of a direct replacement for the HHR, while a Granite-like Chevy would fill its own niche.

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          1. Or they might turn this into the HHR with this exact car

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  16. jeez i cant beleive you guys gm is doing fine in my opinion. pontiac was losing feasibility, thats why they got rid of it, with chevys new take on things pontiac would just have been shoved under the carpet eventually. as for all those “missed” markets thats just trying to cater to everyone and that would streach them to far right now wait a few years and there will be as many chev models as ford ones. and actually the more i thought about it the more your right it would look good as a chev but it also works as a gmc and probably pontiac to. andas far as that thing where ‘oh it’ll eat away sales of other models’ bs gm doesnt/shouldnt care its still money in thier pockets.

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    1. I don’t think a Granite-like Chevy vehicle would cut into sales of any other Chevy model, especially since the Cruze hatch isn’t offered here.

      It’s not won’t be costly to produce, since most parts/components are shared with the Cruze. Quite lucrative, in fact.

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      1. It might cut into a bit of sonic hatch sales, but since its profibility level would meet or exceed the sonics so it doesnt really matter.

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      2. you know i re-read my comments and saw how unresonable im being (except the one about the tungsten but that has nothing to do with this) so really i dont know why they cant build it as both i know i would buy the granite over whatever chev one they came out with cause i’m sorta in love with it, and have had more time to consider it. all in all both would obviously sell well just find a way to differentiate them some more (awd in the gmc please) and gm could have a potential riot on thier hands.

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  17. I like the Granite, but not as a GMC. I see the GMC brand is more upscale than Jeep, more like Range Rover or Hummer. Premium larger CUV’s, SUV’s, and trucks.

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  18. Chevrolet TRAX anyone?

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  19. Should have made the Granite a Chevy & given GMC the Holden ute!

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  20. Make it a Chevy. And a Buick for export to China.

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  21. wait wasn’t the chevy concept version the groove?? it has the right proportions

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    1. The Granite is almost two sizes bigger: the three concepts were city cars whereas the Granite is a compact.

      The size/class progression goes like this: city car (Spark) – subcompact (Sonic) – compact (Cruze)

      Reply
      1. oh ok then i just saw the pics side by side and saw the proportions and thought ‘wait a minute’ but he pics wern’t to scale obviously and i knew that (the groove was actually biggger in the pics but i knew that wasnt right) it was more of a proportions thing

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  22. The bottom line is should this be a GM vehicle, to hell with what brand it is; the answere is yes it should be, in other words the vehicle design as we know it makes enough of a statement and is unique enough to provide GM a different type of vehicle a vehicle it needs in its line. In the not to distant future a new demographic will be purchasing vehicles how GM adjusts its portfolio to meet these new consumers will define all it’s brands. The fact is GMC as a brand may have to adjust to new consumers as well; what type of backlash they got from presenting the Granite may not exist 5 years from now…

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    1. Exactly! I think the Granite will be a great addition to the GM lineup regardless of its badge.

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  23. ya i sorta agree but if they do bring this they need to do it as a gmc cause thats the concept that came first

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  24. Regular GMC owners don’t want to be associated with a smaller…really? And they actually care about that? That would be even more pathetic than the people that expressed that viewpoint.

    I don’t personally care about the CUV, but I would like to see the CPU built. There aren’t any in North America right now and the vehicle makes sense in a lot of ways. When gas prices hit $7 a gallon and people still proudly declare the right to drive a pick-up that they never use for anything more than grocery-getting, well; what do you do.

    What GM does, is sit and wonder why they didn’t build that little truck. Have you ever heard or seen Bob Lutz talk, the president of the company? The guy’s an old-school dinosaur who lives in a corporate bubble and GM just refuses to get it. Are the board members all his best pals?

    Toyota will come to market with their mini-truck first and that will effectively end the discussion.

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    1. Let’s clear up the inaccuracies first:
      1. Bob Lutz is retired, and has been now for some time
      2. Bob Lutz is an industry pioneer; not sure what about him makes him a dinosaur to you. You are aware that he pioneered the Volt and most of GM’s product-focused turnaround… right?

      Now that that’s out of the way… the CPU would fit right into the GMC family. But I’m afraid that volume would be insignificantly low without a more mainstream boxy hatch variant, thereby making the CPU by itself financially not feasible.

      If it were up to me, I would simply create a Chevy version of the Granite (with Chevy styling cues, etc.) and then give GMC the CPU.

      Reply
  25. okay thought about it some more. Granite: a budget version of the encore, Groove: the Chevy version of the granite with some styling tweaks (i’m thinking more sonic/spark like styling rather than cruze just to attract the buyers of these funky tall hatches) have the trick doors on the Groove and leave the Granites styling alone. oh and don’t offer the truck version.

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  26. I agree with a host of others, good article. One addressed the issue of making a chevy model out of it, well they already have ….. in Canada an Europe. Can we say Orlando boys and girls? I was ready to trade my trusty old ’05 Malibu Maxx for a 2LT Orlando with a few extra options. I looked into the Orlando thinking with sales in the Upper Canada region we’d see it as a 2013 model. The people I spoke with were rather blunt in telling me no, nope, nada single one for U.S. sales. Well I dry-docked my old trusty Maxx and spent close to $1,500,00 on the old girl. Now she’s ready for 7 more years. We station wagon people love our wagons. In a earlier post I wrote this hopeing someone at GM would see it. Stationwagon owners don’t make good SUV or Crossover customers, and we make lously Mini-Van customers too. Now GM some other than Cadillac buyers want a wagon too. We don’t need a $49K wagon to run to Home Depot or the Grocery store. Think about fellows and get your house in order and bring across the Orlando. Here is a tid-bit you might not know …. Hyundai if looking at the Sonota Wagon (Europe Model) to sell here. The ball is in your court guys, don’t wait untill a Asian or European model takes your business.

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  27. YES! Axe GMC, that will give you room to bring Pontiac back. Then your young customers will return!

    Reply

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