GM Expects Big Things From New Small Pickups

MILFORD, MI – General Motors is confident its ’15 Chevrolet Colorado and GMC Canyon will succeed when the midsize pickups hit the market in the fourth quarter.

GM left the segment when it axed the last-generation Colorado and Canyon at the end of the ’12 model year, following Ford’s discontinuation of the Ranger pickup in 2011. Chrysler also exited in 2011 when it chopped the Ram Dakota from its lineup.

The only remaining major players in the segment are the Nissan Frontier and Toyota Tacoma, which posted sales increases last year of 13.4% and 12.8%, respectively. Through June, Frontier deliveries rose 22.6%, while Tacoma sales dropped 7.4%, according to WardsAuto data.

The Tacoma last year controlled 65.1% of the Small Pickup segment, as defined by WardsAuto, while the Frontier held a 25.6% share.

Chevrolet and GMC marketing managers say when the number of trucks in the segment dwindled, many left for other vehicles, including fullsize pickups and small CUVs. The automaker is taking aim at those consumers with the all-new Colorado and Canyon.

“There is a lot of pent-up demand, especially if you think about domestic-minded customers,” Tony Johnson, Chevrolet Colorado marketing manager, tells WardsAuto during a media event here. “There is no Dakota and there is no Ranger. So we have the only domestic entry in the segment.”

Johnson says he expects the new pickups to be fully competitive with the segment-leading Tacoma and Frontier, both of which he says are outdated.

Toyota and Nissan have “neglected the segment,” Johnson says. “They haven’t had a major refresh in a decade and it shows. We’re going to leapfrog them with this product.”

The Canyon and Colorado will be available in both 2- and 4-wheel drive and be powered by either a 2.5L inline 4-cyl. making 200 hp, or a 3.6L V-6 producing 305 hp. A 6-speed automatic is offered on most trim levels, while a 6-speed manual can be had on base-level 2WD trucks.

Pricing has yet to be announced, but Johnson says the duo will be priced competitively with the Tacoma and Frontier, which start at $18,125 and $20,510, respectively.

Small Businesses Among Targeted Buyers

When Ford discontinued the Ranger, it argued customers instead would opt for base-level F-150 fullsize pickups, but Johnson says research indicates that’s not the case with all midsize pickup owners.

“There are customers that can easily afford a fullsize pickup, both the price and operating cost, but it’s the wrong truck for them,” he says. “They’re compromising and having trouble parking, or it doesn’t fit in their garage, or they live in a city and (are) trying to parallel park and can’t.”

In addition to fullsize and midsize pickup buyers, Johnson says some customers went to small CUVs, such as the Ford Escape, when the midsize pickup segment shrank. He views those consumers as possible conquest customers, as well.

Additionally, small-business owners, many of whom don’t need the capability of a fullsize pickup, will be drawn to GM’s new offerings, he says.

The GMC Canyon is expected to account for a little over 30% of GM’s midsize pickup mix, similar to the split between the Chevrolet Silverado and GMC Sierra fullsize pickups.

Rich Latek-director, GMC and Buick Marketing, describes the Canyon target customers as “disciplined achievers” looking for quality and premium materials.

Canyon customers “believe if they’re going to do something, it’s worth doing well,” he says. “This is the only premium midsize truck on the market.”

Most business from the two trucks will come from coastal areas, particularly California, Johnson says. Hispanics will be a primary demographic target for the pickup duo, as they represent a huge opportunity for segment growth, he adds.

“They’re a big piece of the midsize pickup segment and a growing part of the auto industry, and this is good opportunity to get out in front of them,” Johnson says. “It’s not often we get a launch like this where the segment is so dated that we can come in and leapfrog the competition. We’re going to come in and redefine it.”

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