On June 3, 2008 GM announced the demise of the well-loved GMT-360s.
www.GMInsideNews.com
June 3, 2013
By: Nick Saporito
Back in 2008, a lot happened at General Motors. Plants closed, models were discontinued as economic conditions deteriorated daily and the company ran low on cash. Among the model carnage was the death of the GMT-360 SUVs, or as customers knew them, the Chevrolet Trailblazer and GMC Envoy. In fact, it is five years ago today that GM announced their demise. While they were replaced with car-based crossovers, nothing ever directly succeeded them, which begs the question as to whether a healthy GM should consider a more direct successor.
The excuse for their demise then was legitimate, but it was circumstantial for a company in dire straits and lacking fuel-efficient product to remain viable in the near term. It was easy for pundits and GM executives to justify the death of the beloved GMT-360s by the admitting the company’s car and crossover portfolio was in shambles. The case against body-on-frame SUVs at GM in 2009 was vast. Compounding matters was that the company raced to get the larger GMT-900 trucks and SUVs on the market to give the company a financial shot in the arm, successfully stealing scarce resources from other programs.
Once the 360s were out of the picture, GM typically pointed to the Theta and Lambda crossovers as the spiritual successors of the midsize SUVs. For most practical purposes, the Chevrolet Equinox or Traverse likely suffice for most former Trailblazer customers, however a lot has changed since 2009.
Since emerging from bankruptcy, GM has established a viable, fuel-efficient car lineup for the first time in decades. In most car and crossover segments, GM leads or is near the top of the segment in fuel economy figures. The days of having optional airbags in GM cars are over. The days of pushrod V-6s and four-speed automatics are also gone. In fact, even the days of Pontiac, Hummer, Saturn and Saab are over.
Concurrently, the company is no longer a financial house of cards. Today’s GM is flush with capital, profitable and appears to have a viable strategic direction on a global basis.
Part of that global nature of today’s GM includes a new body-on-frame chassis. In overseas markets GM sells an all-new Chevrolet Colorado and Trailblazer, complete with small diesel engines.
GM has also confirmed that a new Colorado and GMC Canyon will arrive in the U.S. next year, though they will be updated versions of the global Colorado, which is not engineered for federalization in the United States. GM does not have plans to bring the new Trailblazer to North America.
So to recap, GM is financially healthy and has established viable products in most mainstream segments of the market. It also now has a new midsize body-on-frame chassis that was clearly designed with North America in mind as it is generating new midsize trucks for the U.S. market.
GM also has a Buick-GMC sales channel in North America that can and often does serve as a conduit for filling niche segments in the marketplace. This channel also has a proven track record of attracting new buyers to the GM fold, with conquest rates on Buick and GMC products regularly exceeding 50 percent. The anecdotal argument can also be made that GMC—GM’s second highest volume brand—deserves some more exclusive products for its portfolio.
Sure, GMC is already confirmed to get a midsize truck based on the new architecture, which is great. However, what about the revival of the GMC Envoy? A modern-day, efficient take on a storied nameplate.
The initial reaction to the idea is probably something along the lines of midsize SUVs being a “dying breed” in the marketplace. Yes, body-on-frame SUV sales plunged greatly over the last decade, however they aren’t dead.
Last year, Toyota sold more than 62,000 SUVs with the 4Runner and FJ Cruiser nameplates. Concurrently, Nissan moved more than 17,000 X-Terras. Both Japanese automakers have virtually no competition in the segment. It’s also worth noting that midsize SUV sales are up 12.4 percent this year according to the Wall Street Journal, which has probably been accredited to sales gains of the semi body-on-frame Dodge Durango and Jeep Grand Cherokee.
The old saying, “Build it and they will come” is worth speculating. Is the market for midsize SUVs dying or is the lack of selection and innovation within the segment causing the alleged death?
There’s no question that today’s vehicle buyer is more conscious of fuel economy and has come to love the crossover. However, the fact that GM is willing to engineer the hardware for the new midsize trucks suggests the company feels the efficiency of this new product line will be acceptable by today’s standards. Why can’t that translate to a new Envoy?
GM has also confirmed that the new trucks will be built at the company’s Wentzville, Mo. assembly plant – meaning they’re willing to invest in tooling a North American plant for midsize body-on-frame vehicles.
The next question is likely to fall along the lines of whether to revive the Trailblazer name and chase volume. Instead of chasing volume, GM should chase higher transaction prices on this product through the GMC brand.
Give the Envoy an upscale, “Professional Grade” image and maybe even offer a diesel powertrain. Assuming fuel economy can get near or at levels of a large crossover, the Envoy becomes a worthy standout in a sea of me-too crossovers. It would be different – much like the brand image Buick-GMC appears to chase.
Speaking of competition, GMC has a full plate of crossovers today. A revived Envoy would compete very closely against the Terrain, however sources state that the next-generation Terrain will shrink in size, meaning there may be an open slot for a new Envoy between a smaller Terrain and the Acadia.
There’s no denying that GM had a long list of legitimate reasons to kill off its entries into the SUV market back in 2009. From financial and public perception perspectives, it was almost a must. But much has changed both at GM and the market environment. If technology has advanced enough to produce a revived Envoy that’s efficient enough for today, it seems like a no-brainer for consideration.
www.GMInsideNews.com
June 3, 2013
By: Nick Saporito
Back in 2008, a lot happened at General Motors. Plants closed, models were discontinued as economic conditions deteriorated daily and the company ran low on cash. Among the model carnage was the death of the GMT-360 SUVs, or as customers knew them, the Chevrolet Trailblazer and GMC Envoy. In fact, it is five years ago today that GM announced their demise. While they were replaced with car-based crossovers, nothing ever directly succeeded them, which begs the question as to whether a healthy GM should consider a more direct successor.
The excuse for their demise then was legitimate, but it was circumstantial for a company in dire straits and lacking fuel-efficient product to remain viable in the near term. It was easy for pundits and GM executives to justify the death of the beloved GMT-360s by the admitting the company’s car and crossover portfolio was in shambles. The case against body-on-frame SUVs at GM in 2009 was vast. Compounding matters was that the company raced to get the larger GMT-900 trucks and SUVs on the market to give the company a financial shot in the arm, successfully stealing scarce resources from other programs.
Once the 360s were out of the picture, GM typically pointed to the Theta and Lambda crossovers as the spiritual successors of the midsize SUVs. For most practical purposes, the Chevrolet Equinox or Traverse likely suffice for most former Trailblazer customers, however a lot has changed since 2009.
Since emerging from bankruptcy, GM has established a viable, fuel-efficient car lineup for the first time in decades. In most car and crossover segments, GM leads or is near the top of the segment in fuel economy figures. The days of having optional airbags in GM cars are over. The days of pushrod V-6s and four-speed automatics are also gone. In fact, even the days of Pontiac, Hummer, Saturn and Saab are over.
Concurrently, the company is no longer a financial house of cards. Today’s GM is flush with capital, profitable and appears to have a viable strategic direction on a global basis.
Part of that global nature of today’s GM includes a new body-on-frame chassis. In overseas markets GM sells an all-new Chevrolet Colorado and Trailblazer, complete with small diesel engines.
GM has also confirmed that a new Colorado and GMC Canyon will arrive in the U.S. next year, though they will be updated versions of the global Colorado, which is not engineered for federalization in the United States. GM does not have plans to bring the new Trailblazer to North America.
So to recap, GM is financially healthy and has established viable products in most mainstream segments of the market. It also now has a new midsize body-on-frame chassis that was clearly designed with North America in mind as it is generating new midsize trucks for the U.S. market.
GM also has a Buick-GMC sales channel in North America that can and often does serve as a conduit for filling niche segments in the marketplace. This channel also has a proven track record of attracting new buyers to the GM fold, with conquest rates on Buick and GMC products regularly exceeding 50 percent. The anecdotal argument can also be made that GMC—GM’s second highest volume brand—deserves some more exclusive products for its portfolio.
Sure, GMC is already confirmed to get a midsize truck based on the new architecture, which is great. However, what about the revival of the GMC Envoy? A modern-day, efficient take on a storied nameplate.
The initial reaction to the idea is probably something along the lines of midsize SUVs being a “dying breed” in the marketplace. Yes, body-on-frame SUV sales plunged greatly over the last decade, however they aren’t dead.
Last year, Toyota sold more than 62,000 SUVs with the 4Runner and FJ Cruiser nameplates. Concurrently, Nissan moved more than 17,000 X-Terras. Both Japanese automakers have virtually no competition in the segment. It’s also worth noting that midsize SUV sales are up 12.4 percent this year according to the Wall Street Journal, which has probably been accredited to sales gains of the semi body-on-frame Dodge Durango and Jeep Grand Cherokee.
The old saying, “Build it and they will come” is worth speculating. Is the market for midsize SUVs dying or is the lack of selection and innovation within the segment causing the alleged death?
There’s no question that today’s vehicle buyer is more conscious of fuel economy and has come to love the crossover. However, the fact that GM is willing to engineer the hardware for the new midsize trucks suggests the company feels the efficiency of this new product line will be acceptable by today’s standards. Why can’t that translate to a new Envoy?
GM has also confirmed that the new trucks will be built at the company’s Wentzville, Mo. assembly plant – meaning they’re willing to invest in tooling a North American plant for midsize body-on-frame vehicles.
The next question is likely to fall along the lines of whether to revive the Trailblazer name and chase volume. Instead of chasing volume, GM should chase higher transaction prices on this product through the GMC brand.
Give the Envoy an upscale, “Professional Grade” image and maybe even offer a diesel powertrain. Assuming fuel economy can get near or at levels of a large crossover, the Envoy becomes a worthy standout in a sea of me-too crossovers. It would be different – much like the brand image Buick-GMC appears to chase.
Speaking of competition, GMC has a full plate of crossovers today. A revived Envoy would compete very closely against the Terrain, however sources state that the next-generation Terrain will shrink in size, meaning there may be an open slot for a new Envoy between a smaller Terrain and the Acadia.
There’s no denying that GM had a long list of legitimate reasons to kill off its entries into the SUV market back in 2009. From financial and public perception perspectives, it was almost a must. But much has changed both at GM and the market environment. If technology has advanced enough to produce a revived Envoy that’s efficient enough for today, it seems like a no-brainer for consideration.