As GM Authority has covered on numerous occasions, General Motors is leveraging its new “Winning with Simplicity” initiative to cut down on a range of expenses and costs, streamlining its product offerings through fewer exterior paint options, fewer buildable configurations, and other measures. It’s estimated that the initiative will save hundreds of millions of dollars annually, however, those savings may not be worth it – in fact, this profit optimization strategy could be seen as something of a dangerous move.
GM Authority Executive Editor Alex Luft explains in the latest episode of the Chevy Society podcast:
As Luft highlights, GM’s decision to significantly cut the number of options offered across its vehicle lineup can be seen most prominently with the launch of the 2025 model year. By offering fewer trim levels, configurations, and colors, General Motors intends to lower costs in design, engineering, logistics, and supplier costs. For example, the 2025 Chevrolet Blazer EV will offer six colors, down from eight in 2024, while the Corvette will drop from 14 to 10 options.
This reduction is expected to save GM around $200 million in 2024, a notable figure, though relatively small for a company that generates billions in revenue each quarter. The simplification strategy is also intended to streamline operations, reducing the burden of managing an extensive array of options across the automaker’s vast portfolio of nameplates, trims, and models.
However, as Luft points out, this strategy may eventually backfire. While reducing complexity helps GM’s bottom line, it also risks alienating customers who value personalization, especially as vehicle prices continue to rise.
As car buyers shell out more money – sometimes $50,000 or more for a pickup – they may expect more customization options, including the ability to choose their preferred color. If General Motors restricts these choices too much, consumers may turn to competitors, who could capitalize on this gap by offering a wider variety of options.
The danger lies in the fact that consumers are often highly attached to details like color, and limiting such options could lead to a gradual loss of market share. While GM’s strategy may bring short-term savings, it could hurt the brand’s appeal in the long run if buyers feel that they are sacrificing too much customization for the sake of corporate profit optimization. Of course, only time will tell if this trade-off proves to be worth it for GM.
Comments
I’m a loyal GM customer and I am interested in the redesigned Terrain Denali. However, only offering one engine option, (that’s unbecoming of a $45k plus vehicle), and no hybrid option has me looking at competitors. The wife’s Audi is starting to look mighty good!
I don’t understand why there are so many wheel options but limited color options. I planned on a new Sierra next year but they dropped the color I liked and I don’t like any of the other color options.
Nobody over at Honda or Toyota seem to be complaining. Its so simplified that the packages boil down to trims. But what I did notice when building a 2025 Tahoe is they are cramming more stuff in less packages and making a confusing mess like Toyota does with Lexus. I can’t get an around view camera with the Mark Levinson sound system on a 2025 NX. So they aren’t clear as to what contents the packages have.
The other thing I noticed, What I find funny is about a year or two ago they were pushing for a Tesla-like custom ordering tactic in an attempt to lower dealer excess inventory and eliminate incentives. By moving in this opposite direction now, they are implying entrenching themselves even deeper into an allocation model like Honda and Toyota where they simply don’t honor factory pre-ordering. So now you can only get your color and options of choice through allocation. What happened? Hats off to those who were calling their bluff when they wanted to have less dealer inventory.
I agree 100%, GM is alienating customers very regularly now with no sedans, no Camaro, few unpopular engine options, no more Premier trim in some models, regular cab pickups in base WT trim only, no short bed reg cab trucks except WT and 4-cylinder engine only (this one kept me from buying). These are the ones I thought off the cuff, there are many more that others can think of. Basically nothing to get excited about, still no answer for the Wrangler or Bronco (another one that pissed me off.
GM no longer offers an extended cab, V6 Canyon/Colorado. However Nissan does. While I wouldn’t necessarily pass on GM because I can’t get a certain color, I for sure would pass if I couldn’t get the configuration I want. GM thinks they’re saving money by only building one body style with one engine and I’m sure they are but they’re sending a lot of their buyers to the competition which means they may actually by Losing with Simplicity.