General Motors recently hosted its Capital Markets Day webcast for investors and analysts, providing a cornucopia of insights with regard to the automaker’s strategy and latest successes. Among the tidbits of info was the revelation that more than 80 percent of GMC Sierra HD pickup sales are a mix of the Denali and AT4 trims.
The statistic was provided by GM’s Executive VP and President, North America, Barry Engle, during his presentation at the Capital Markets Day webcast.
“Additional production capacity will also allow us to better meet demand for these high-end trucks that carry the best ATPs in the industry,” Engle said. “Roughly 80 percent of our new GMC heavies have been either AT4’s or Denali’s with ATPs over $70,000. The success of these trucks shows there’s a real customer appetite for very capable, premium trucks.”
Engle’s acknowledgement that GMC Sierra HD average transaction price is in excess of $70,000 is also quite interesting, as it provides an indication of just how premium the truck segment has become – and how GMC has managed to leverage that evolution.
Furthermore, Engle said that nearly half of all Sierra sales, which includes both the GMC Sierra HD and the Sierra 1500, are with the Denali and AT4 trims, further underlining customer demand for high-end, premium pickups.
That said, the 80 percent figure that Engle quotes may be misleading, as GM launched the most profitable variants of the GMC Sierra HD prior to the lower trims. As we covered previously, GM launched the low-cost, Regular Cab entry trim levels for the Chevrolet Silverado and GMC Sierra in the fourth quarter of 2019, thus completing the brand’s pickup rollout towards the end of the year. As such, with the higher trims available longer than the lower trims, it makes sense that the off-roader-spec AT4 and range-topping premium Denali would outsell the lower trims.