[mgescuro]

GMC Should Die… And be Reborn
...another commentary by mgescuro...

For GMC the past couple of years, it has been known as “Professional Grade.” It was the brand of (supposedly) tougher trucks and SUV’s because, it was “Professional Grade.”

But what exactly did that mean anyways?
Well, for all intents and purposes, it was a pure 100% rebadged brand. GM took the basics of a Chevy Truck, reworked a few exterior items, on occasion, there were even a few interior tweaks and upgrades, and sometimes a few options not found on a Chevy. But essentially, it was pure rebadged badness.
The only tangible difference between Chevy Trucks and GMC Trucks were the customers. GMC customers wouldn’t buy a Chevy. And there were enough customer out there to justify GMC’s existence. Plus the investment in GMC is really minimal as it’s all rebadged anyways.

With the advent of $4 gas and in some regions of the US, $5 gas, what use is a brand that is All Truck and All SUV and All Rebadge? The answer is, “None.” It is completely useless.

So, GM should dispatch GMC post haste.

What Happens Now?

There is certainly a good chunk of GMC buyers out there that aren’t necessarily going to go away. Therefore, the strategic thing to do is to strengthen and redefine Chevy Trucks. What made GMC more attractive to buyers than Chevrolet? Build on those strengths. Blend them into Chevy Trucks.

Create a tiered structure at Chevy Trucks.

1. Base level trucks and SUV’s. These are the trucks we know and love today.
2. Reintroduce the Denali Line at Chevy Trucks. However, the Chevy badging disappears. It’s simply Denali. (e.g. Silverado Denali not Chevy Silverado Denali)
3. Establish a Hybrid “Collection.” All the same vehicles in Hybrid format. Create a “Sub Brand” similar to Denali. Let’s dub it the “Cascade Line,” in deference to the Denali Line. (e.g. Silverado Cascade)

This way, the name recognition of the Denali line remains. The phrase, “I bought a Denali” remains. In addition, you make the fact that you’re driving a Hybrid special and more unique, saying, “I drive a Cascade.”

GMC Reborn?

Yes. GMC is “Professional Grade.” So let it be truly “Professional Grade.” GMC becomes the commercial arm for GM Trucks. This shuts down Chevy commercial trucks. GMC becomes the sole source for commercial related trucks at GM.
Canyon and Sierra families remain with chassis/cutaways available.
Savana remains as a cargo and cutaway platform.
Acadia remains in a cargo format.
Light and Medium Duty commercial trucks remain and perhaps expand. I would expect a more aggressive salesforce so GMC more effectively competes with Ford Commercial trucks. Let GMC allow for the same customization with greater truck solutions to compete with Ford.
Envoy and Yukon die.

Over the course of time, GMC can re-establish itself as a tough, commercial grade/professional grade truck company. If the buyer marker in the future allows for another truck company, then GM can reintroduce GMC to the market. But this time, it will have a more solid reputation as a true Professional Grade brand, with solid expectations.

Dealerships?

With the expansion of Chevy Trucks in my scenario, one Chevy dealership, but the trucks should be sold separately from the Chevy cars. There should be 2 separate buildings. One for trucks; one for cars. But one dealership. Simple.

 

[ChevyRules]

You stole my idea mgsecuro for GMC. You will hear from my lawyer. :

 

[CamaroCrazy]

Well said, mgescuro. Its so obvious and plain to see, will GM do it?

Funny thing about this topic is that my father and I were discussing the eliminate GMC vs eliminate Pontiac debate earlier tonight. My grandfather worked in management at GM until the mid 60s and explained the existence of GMC as a retail customer brand as a way to keep Ford and Chrysler at bay and not scream "monopoly" or "antitrust" because Chevy trucks were dominating the market at the time. They did it to spread out GM's truck resources over more than one brand. Or so I've been told.

My father has always been confused as to how GMC, the "Professional Grade" work horse truck became more lux than Chevy. Denali - they sell and they are beautiful - how did that ever make it into GMC? GMC does need to go strictly commercial duty.

I like your "Cascade" idea too.

 

[jasaero]

Really I think GM could kill a few brands in the US market and then reintro them later to great effect. The biggest problem with having all the brands is having enough funds to market them all well. If you killed a few to focus on marketing the remaining brands you could accelerate efforts to get long lost customers back. Once your image is repaired you would probably have a market share hitting a ceiling and could re intro the buicks, pontiacs, saturns, and GMC's and such with products from China, Australia, Europe and your commercial vehicles here for retail GMC.

Think it would also help slim the dealer count easier if you just killed PBG and Saturn altogether. Offer their products back to the slimmed dealer network when you bring the brands back. If the reintroed brands had well differentiated products there is no reason they couldn't be sold along side Chevys. Maybe make Buick more premium and sell them as the Lexus competitor at Buick dealerships. The only problem is that they really would need some differentiated producs from the Chevy's and Caddy's being sold here ready and available over seas. Really though if GM ever wants to see 40% market share again in this country they are going to need most of the brands they currently have and they are going to need to be very diffent vehicles from brand to brand, even though they may kinda compete with each other.

 

[steve333]

This would not work. A Chevy is a chevy and GMC buyers will go elsewhere.
GMC is bundled with Buick, a slightly higher level truck/suv/cuv. It fits here and in my opinion should stay with CUVs replacing SUVs and a car based trucklet added.
GMC is a valuable brand name that should stay.
Pontiac, on the other hand, can say byebye. Saturn should change its name to Opel.

 

[poncho1982]

While I agree that GMC needs to go, and yes send the Denali line to Chevy. However, the bowtie MUST go on the vehicle somewhere. Thats kinda like GM saying they are ashamed to call it a Chevrolet, if they omit it.

This was the exact idea I have stated for years now, must be a good one!

 

[poncho1982]

This would not work. A Chevy is a chevy and GMC buyers will go elsewhere.
GMC is bundled with Buick, a slightly higher level truck/suv/cuv. It fits here and in my opinion should stay with CUVs replacing SUVs and a car based trucklet added.
GMC is a valuable brand name that should stay.
Pontiac, on the other hand, can say byebye. Saturn should change its name to Opel.

GMC buyers, for the most part, will not go elsewhere, they are intelligent enough to know that they bought a rebadged Chevy anyway. Same truck, and until the 07 models, same skin even.

 

[FenwickHockey65]

It's an interesting and intriguing plan, as always, mgescuro.
However, I still think that my solution is the best, and not just because it's mine. I think my plan effectively saves the GMC brand from death, but helps to streamline GM's brands as well as drastically cut production of trucks.
I like the idea of GMC being the only GM supplier of commercial trucks. But it still wouldn't be the same. As people have said, a lot of GMC owners are very loyal, and some wouldn't even consider a Chevy. Myself, if GMC is shut down, I'll go to Chevy, but only because I've been forced to and there's no other alternative. There might be some confusion as well as to why there's a GMC but no Sierras, Yukons, or Acadias.

 

[mgescuro]

This would not work. A Chevy is a chevy and GMC buyers will go elsewhere.

Where else is there to go?

If they want a truck, they have to Chevy or Ford.
If they are a Denali buyer, they'd have to go to Chevy, but because the new Denali line has no Chevy badging on it whatsoever, just "Denali," then the low rent image of Chevy doesn't affect "Denali."

As truck sales are plummeting now, GM really can't support more than 1 truck based brand.

 

[CadiEldo67]

This is an excellent idea, although, isn't Cascade a dishwasher soap?

 

[FenwickHockey65]

^^ :yup:

 

[mgescuro]

As people have said, a lot of GMC owners are very loyal, and some wouldn't even consider a Chevy.

So, where would they go?
Are these same buyers loyal to GMC or to GM?
How can one quantify the number of people who would never buy a Chevy? And if that number can be quantified as significant, then the problem isn't with the people, the problem is with the image of Chevrolet.

What keeps GM from moving forward is this archaic belief that they need umpteen different brands to satisfy every single niche customer's needs. And while that is admirable, it is inefficient.

There is fundamentally nothing different between Chevy and GMC. Absolutely nothing. So why have 2? Ford does fine with 1 brand. Toyota too. Nissan too. But GM needs 2?

Why can't Chevrolet do it?

This is an excellent idea, although, isn't Cascade a dishwasher soap?

YEsssss.... and a mountain range in the Pacific Northwest....

 

[scotted73]

Great idea mgescuro.

I just watched the Ask This Old House Hour and guess who sponsored it? The "Professional Grade" GMC brand. Got me thinking some more about what this really meant. Over the last few years it was some "interesting" technology such as the Envoy with the retractable top and hoseable cargo area. Some extra chrome parts and a different face is what Professional Grade represents.

It seems to me that GMC is more of a LTZ option on a Chevy. The problem is that a LTZ Chevy really negates what GMC brings to the table.
The Acadia poses no Professional Grade other than HUD and Rear cargo audio controls to the Outlook and the upcoming Traverse.

Professional Grade should be the commercial and contracter arm of GM.

 

[Lichtronamo]

GMC is important because of its buyer demographics, who tend to be more wealthy than Chevy (or even Escalade) buyers.

Why not eliminate the Chevy trucks and sell GMC though Chevrolet/GMC dealers?

 

[FenwickHockey65]

So, where would they go?
Are these same buyers loyal to GMC or to GM?
How can one quantify the number of people who would never buy a Chevy? And if that number can be quantified as significant, then the problem isn't with the people, the problem is with the image of Chevrolet.

What keeps GM from moving forward is this archaic belief that they need umpteen different brands to satisfy every single niche customer's needs. And while that is admirable, it is inefficient.

There is fundamentally nothing different between Chevy and GMC. Absolutely nothing. So why have 2? Ford does fine with 1 brand. Toyota too. Nissan too. But GM needs 2?

Why can't Chevrolet do it?

Of course, we won't know just how many people wouldn't stay with GM, but a few here on this site have already voiced their opinion that they'd go to Ford or Dodge without GMC. I'm sure that others feel the same way.
Honestly, I can live with this solution, but I don't know if it's the best one. Perhaps the GMC nameplate could live on as a trim level with a Silverado? I think someone had this idea before...

 

[plane]

I just don't see the bottom line value in this proposition.
There's no pro-forma financial analysis to back it up.
No synergies mentioned.
No investigation of the incremental costs involved in producing GMC products.
No discussion regarding the costs of closing down GMC dealerships.

Burned once by Oldsmobile.
GM is going to think carefully and make any decisions based on the bottom line.
I just don't see the bottom line relevance in this scenario.
I can think of several things GM should probably do before going down this route.

 

[mgescuro]

GMC is important because of its buyer demographics, who tend to be more wealthy than Chevy (or even Escalade) buyers.

Not really.
That demographic is representative of Denali only.

That's why in my version, no trace of "Chevy" remains and the sub-brand is called "Denali." You just buy it at a Chevy Trucks dealership.

 

[FenwickHockey65]

GMC is important because of its buyer demographics, who tend to be more wealthy than Chevy (or even Escalade) buyers.

Why not eliminate the Chevy trucks and sell GMC though Chevrolet/GMC dealers?

Another good point. In the wealthier parts of town, I actually see more Yukon XL Denalis than Escalades.

Do you think that people would take up that idea? I'm not saying it's a bad idea, in fact, if we were to combine GMC/Chevy, that's another good way to do it. However, Chevy has been well established as a work truck brand here in the US, and I don't know how wise it is to tamper with that reputation by introducing GMC into that slot instead.

 

[HoosierRon]

I fail to see the benefit of this plan. If Denalis and Cascades are not called Chevrolets, then they need their own ad budgets, or no one will know they exist. And you still need the ad budgets for the GMC commercial trucks. Under this plan, you need separate buildings for the trucks. Now Chevy and GMC trucks are sold in existing buildings. Commercial GMC trucks will never bring in the profit margin that GMC trucks currently get (it would be too easy for Ford to undercut GMC's price; today people pay extra for a GMC because of the exclusivity, not the towing capacity).

I don't think people will buy orphaned models:

I drive a Silverado Denali.
-- Who makes that?
Umm... I don't really know. They never told me. But I know Chevrolet does not make it. I don't drive Chevrolets. That's what my gardener drives.

Finally, I suspect too many BPG dealerships would fold without GMC.

 

[mgescuro]

Another good point. In the wealthier parts of town, I actually see more Yukon XL Denalis than Escalades.

What it proves is that GMC is a very confused brand.
Professional grade? Commercial? Luxury? What is it trying to be? Because its marketing isn't showing that.

Do you think that people would take up that idea? I'm not saying it's a bad idea, in fact, if we were to combine GMC/Chevy, that's another good way to do it. However, Chevy has been well established as a work truck brand here in the US, and I don't know how wise it is to tamper with that reputation by introducing GMC into that slot instead.

That's what I'm trying to say. It is these historical notions of brands that is holding GM back.
The issue is GMC itself. It really should be GM's "Professional Grade", commercial grade truck.

Let's get rid of all he preconceived notions of what Chevy and GMC should be. What GM needs is one single truck company. Period. Anything more is a complete waste.

Chevy is it because Chevy is supposed to be GM's global pillar.