Another GMC Utility in Mix

DETROIT – Duncan Aldred, U.S. vice president, Buick-GMC, confesses the iconic General Motors truck brand soon will add at least one more offering to its lineup, but says there are no plans to grow the profitable unit much beyond what it offers today.

“To grow to 5% (industry) market share, we will need one or two additions to the portfolio,” Aldred tells WardsAuto during a recent interview here.

Aldred, who wants to expand the brand’s U.S. market penetration from 3% to 4% within five years and to 5% within 10 years, stops short of sharing details on the next GMC product but suggests something fresh could emerge as little as 12 months away.

“When you look at the portfolio, you start to think, ‘What niches are there?’ You could argue a third (CUV) between the Acadia and Terrain. But there is not much space,” he says.

One key consideration for future GMC products, oddly enough, hinges on Buick. The shared sales channel means both brands vie for showroom space and marketing dollars, neither of which are limitless – for GM or its dealers.

That means the next new product from GMC may not be so new after all. WardsAuto forecasts a redesigned Acadia in 2016 as a ’17 model, but as a slightly smaller edition of the 7-passenger CUV. The new Acadia would realign the Buick-GMC showroom to include four sizes of CUVs, with the large Buick Enclave at the top, followed by the shrunken Acadia, the midsize GMC Terrain and the compact Buick Encore.

“Too much product sometimes can be as bad as too little,” Aldred says of the showroom dilemma. “I think GMC has got it about right.”

Aldred: GMC market share to 5% within 10 years

GMC reportedly has showed its dealers a concept emulating the hot-selling Jeep Wrangler. But sources tell WardsAuto the vehicle remains just a concept, for now at least.

“We are looking at portfolio options,” Aldred says, adding that whatever the next product is, it will not be half-baked. “It’s a truck brand and it’s a premium-truck brand. We’re not going to move away from that.”

The latest addition to the GMC portfolio has been a resounding success, Aldred claims. The Canyon midsize pickup and its Chevrolet Colorado platform mate cannot meet brisk demand.

“The momentum is phenomenal and we’re trying to think of creative ways to increase line rate, capacity, it’s a good problem to have,” he says.

GM builds the Canyon and Colorado at its Wentzville, MO, assembly plant. The facility also builds large vans, also in high demand of late, using every minute of a 3-shift rotation. The Canyon closed December with 4,124 units in stock, according to WardsAuto data. That’s a bit light for a pickup expected to sell several thousand units per month.

“We could sell more (and) more are coming,” Aldred says. “It is a nice position. You get great residual values and resale values, and it builds a good business model.”

Aldred expects a big year for GMC in 2015. The brand is coming off a year where it sold 501,853 vehicles, up 11.3% vs. year-ago. Average transaction prices ballooned 10%, and 21% of sales were highly profitable top-of-line Denali models.

Brand-building will be the primary driver, supported by greater advertising and marketing budgets. Aldred declines to say how much, but estimates spending will double. A key piece will be a television campaign the brand is wrapping up to air in the first quarter.

“It will really position GMC as a premium-truck brand,” Aldred says.

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