Many were, and still are, skeptical of General Motors’ decision to offer smaller mid-size pickups which undercut the price and size of its full-size offerings. The belief is that customers would rather pay a little more and get a bigger, more capable truck, but according to Automotive News data, the market dynamics have shifted in recent years, and many consumers are looking for something priced from $20,000 to the low $30,000s.
Mid-size pickups such as the Dodge Dakota and Ford Ranger were discontinued as they became older and increasingly less popular, while consistently losing out in the sales race compared to their full-size counterparts. GM is now looking to revive the segment, which its fellow American automakers abandoned years ago.
The main reason for the lackluster sales of smaller trucks was steep discounts being offered on full-size pickups. The pricing gap between the two became insignificant, and many consumers decided to pay a little extra to get a lot more truck. However AN says a demand for new content, technology and features on full-size pickups has driven the prices up, with average net transaction prices in the segment hitting a record high of $37,568 this year. This has led analysts to say that GM’s less expensive and smaller mid-size offerings — the 2015 Chevy Colorado and 2015 GMC Canyon — couldn’t have come at a better time.
“We’ve seen [full-sized] truck prices rise so much in recent years, it does leave a void in the market for smaller trucks with decent content and amenities,” Edmunds senior analyst Jessica Caldwell told AN. “The timing is as good as it’s been in at least a decade.”
GM announced pricing for its 2015 Chevrolet Colorado and GMC Canyon last week. The base 2015 Colorado with an extended cab layout and a 2.5-liter, 200 horsepower four-cylinder engine will come in at $20,995, about $9,700 less than the same trim-level Silverado with a crew cab, and still $5,600 less than the least expensive 2014 Silverado you can buy.
Dealers are echoing analysts’ thoughts when it comes to the pricing and timing of GM’s new mid-size trucks. The previous Colorado and Silverado “stepped all over” each other in terms of pricing, said Rick Cantalini, a manager of a dealership in Texas. This time, GM has held off on offering extreme rebates on its full-size offerings, creating a larger price gap between the two models.
GM may be on the right track with the new Colorado and Canyon, but analysts are still being cautious when it comes to sales predictions. Sales estimates from IHS Automotive, AutoPacific and LMC Automotive range from 73,000 to 91,400 combined sales of both trucks in the first year, much less than the 664,803 Silverados and Sierras GM sold in 2013.
Comments
Almost $21k for a glorified 2 wheel drive Chevy LUV? Yikes.
Saw two slightly camo’d, white GM mid sizers doing high altitude testing in my neck of the woods. One was towing a larger trailer. They DO look small compared to other vehicles in Colorado’s high country where even soccer moms drive full size pickup trucks.
I bet they will be priced right near where the half tons are priced, right above you’ve got to be kidding, in the vicinity of sheer insanity. A decade old Tacoma is cheaper and should prove more reliable.
It seems to me that the ability to get a full size truck at rebated and discounted bargain basement prices would hinder the sales of these. That said, if GM plays hardball with the full size price structure these may have a chance. A lot of folks really don’t need a large truck it’s just that they were affordable in that respect. If these prices hold up against each other maybe these midsize ones will have a chance after all.
@magirus
Not at all, the mid size trucks are about 6-8k less than a comparable model. Canyon SLT @ 39k & Sierra SLT @ 46k and that is only with a bench seat, add in another 1k for buckets and tons of available options on the full sizers. It is about 1k more than a Tacoma. The Z71 is 34k and the TRD is 33k and the limited Taco starts at 37k and the SLT starts at 38K. They under cut both Taco/Frontier in starting prices with their extended cabs (Tacoma is the only one that offers a regular cab and they are supposed to go away I have heard). Not to mention you can’t deal much at all on the Tacoma, these trucks are right where they need to be. Much better interior, more options and technology. Even with discounts a full size will be more all around (OTD price, MPG’s, maintenance, insurance, ect) and the larger size to deal with if you don’t need a full size. Will a loaded SLT hit 40k? Sure, so will the diesel. But none offer a diesel yet. Just to compare apples to apples…
@magirus – Good Luck with your 2005 Tacoma with 150k on it.
First off some folks here should not pass judgment on a truck they have not even sat in let alone drove. I have been in one and can say this is not even close to the last gen truck as it has the feel and quality of the full size.
This is the play here. all automakers are going to have issues selling the half ton trucks due to cafe. they can not sell around 2 million units a year and not have issues with meeting government regs unless they make some radical changes.
The key word most have been repeating in the truck industry for half ton lines is mass. The only way they will meet these needs is less mass. But even aluminum has it’s limits.
From what I am seeing I feel the companies will get around to all having a smaller half ton truck. To drive people there they will continue to increase prices. Now that will force people either into a smaller truck or a larger 3/4 that so far has less strict fuel regulations.
Higher prices will drive down sales and force people to other trucks. Also the higher price will retain the profits in this segment.
GM now has a smaller truck. Ford has one that can come here any time they like as it is built to NA standards. The aluminum I expect will move on to the heavier trucks to save gas and increase towing.
Even Dodge has been rumored to be working on a small truck. I also expect that we may see a smaller truck than the Colorado yet at GM. It is a fact GM is looking at it but nothing has been decided that we know about yet.
Like I have said the market will radically change over the next 10 years.
Diesels and all the tricks like Hybrids and aluminum can not save the half ton with out the changes in size.
Now the old smaller trucks died because of the rebates on the large trucks. You had to been nuts to buy a small truck when you could get a similar full size for the same price. Now the trick will be to keep from rebates next year to not discount the full size to Colorado price ranges.
Also what killed the small trucks was the lack of investment. The Ford was old and outdated, The GM trucks were crap, and the Dodge made GM trucks look good. The Toyota and Nissan have only hung on because of their global sales. Most here run forever but the bodies fail terribly here in the rust belt. We have Toyota trucks breaking in half here because the frames give way in 10 years of salt.
Anyways it will be interesting to see if this will work as this is a gamble. Even if they can slowly move people over that will do it but if they keep rebating them the full size it will fail.
the key will be the Ford Pricing and how tight they keep to the price. This will help GM. As for Dodge they have the most to gain as they can discount their trucks as they are so cheap now they have nothing to lose. But they will have to find a way at some point to cut mass and it will not be cheap. Ford is hiding the prices now but in the end the average Ford truck will grow in price. They can more the increase from the base price to engine and other option packages to pick up the slack.
I wish I could predict how this one will come out but so do a lot of other people. I think it will work but it will take a few years to grow this segment.
These trucks are bigger than most previous smaller trucks. I think that helps. They have more std and optional amenities. Big help. AND the biggie is the aging population no longer needs a Silverado that has grown a lot in the past 5+ years and can do just fine with the smaller truck. I have always had Silverados and still do. But I look forward to a bit more garage room, easier parking, smaller turning circles, and still have a nice Chevy truck with some bells and whistles. I need a truck but nothing bigger than my 2004 and I can go smaller. NOT bigger. They sort of forced me into this and I am happy.
You are just who they are targeting.
Many people today are down sizing for several reasons. Most do not need the large vehicles. They also hate paying for them. Then they hate putting gas in them when it spikes several times a year.
Who would have ever thought a FWD CUV like the Nox would sell in numbers nearung 300,000 a year. Also
Also how about the sales of the new Buick Encore. Something I would not have predicted 10 years ago.
This truck is targeted at me. I drive a Mazda 6 right now and would love to have something more practical that still has some bells and whistles without spending $35k. All I ever would use a truck for is throw my bicycles in the back, pull a popup camper once or twice a year, transport some larger items a few times a year, but still get decent gas milage around 20 – 25 mpg.
Price the LT Crew Cab V6 close to $25k, and I am sold!
I am really looking forward to the Colorado. I’ve never owned a pickup truck before… mainly Wranglers and recently a FJ Cruiser, but I feel there may be some SUV crossover buyers like myself that are genuinely interested in this segment.
As a male that has an expanding family, finding a vehicle to haul “stuff” on and off-road is getting more and more difficult. I refuse to buy a SUV that is based on a car with highway tires and that looks like a minivan, or over $50K for a 7 passenger full-sized SUV like the Tahoe. In my opinion, there are very few options out there for someone in my circumstances. The Grand Cherokee and 4Runner are basically the only options left and they cost way too much.
So where does that leave someone that wants more cargo space than a compact SUV like a Wrangler? I don’t need 3 row seating but I do need off-road capability. I want to be able to park in my garage, but I also want to be able to haul gear, bikes, skis, etc for a long weekend without having a jam packed cabin.
Bottom line, I can really see a lot of previous compact or mid-sized SUV buyers like myself with an active family really appreciating the practicality of this segment. If my family is anything like others out there, it will appeal to more buyers than current or previous truck owners may think. Maybe this is the grand master plan and I’m just being naive or I’ve been living under a rock for years. Either way, my family of 4 will be thoroughly enjoying a crew cab this winter.