The utility segment continues its expansion into the luxury space with more comfort features, more technology, and correspondingly higher prices. That said, GMC customers don’t want a luxury brand, as highlighted recently by Global Vice President of Buick, GMC, and GMC Hummer EV at General Motors, Duncan Aldred.
During a recent media presentation, Aldred provided some insight into the GMC brand and how it connects with customers, saying that GMC customers want a brand that’s luxurious, but still grounded.
“I always say that you can go to a job site, worksite, and then go to a red carpet event with a GMC,” Aldred said.
Despite this, GMC’s average transaction prices (ATPs) are approaching the ATPs seen in the luxury segment thanks to strong sales of AT4 and Denali models. As GM Authority covered last week, GMC AT4 and Denali trim levels made up nearly half of all GMC sales last year, with the two sub-brands combining to account for nearly 46 percent of all GMC sales during the 2022 calendar year. The ratio was even higher in Canada, where AT4 and Denali sales accounted for 55 percent of all GMC brand sales.
“GMC as a brand from Terrain all the way to Yukon average was just below $60,000 for the entire year,” Aldred said. “And if you break that down, you can say ‘what did that do for Q4 because it was rising all year as well,’ well it was more like $64,000. So GMC’s average price for the brand was $64,000 and […] that really puts us into the luxury space in terms of the average price paid.”
Beyond the pricing, Aldred maintains that GMC has its own space in terms of positioning.
“A lot of that has been driven by really consistent brand positioning, because GMC knows what it is and has been very consistent in the delivery that we are professional grade, capable, and precisely crafted vehicles that really can be driven anywhere for any event,” Aldred said.