GMC is Bringing “The Denali Effect” to GM

GMC-grill

GMC has been benefitting from a perfect hand of cards dealt by fate lately. They are offering vehicles in some of the auto industry’s hottest markets, helping to revive an newly promising old segment, and riding lower gasoline prices to consumers’ growing re-acceptance of a product lineup not always associated with being green.

Now we have a new terminology to discuss: The Denali Effect. What this does, is explain how GMC is continually boosting the percentage of brand enthusiasts who prefer the top-of-the-line Denali versions of its vehicles. This is enhancing GM’s bottom line and also gives GMC credibility as the industry’s purest and most advanced premium truck and SUV brand.

The Numbers Game

Roughly 20% of GMC’s customers are Denali buyers and demonstrate some measure of pride in these exquisite trucks. Duncan Aldred, vice president of the GMC brand is quoted as saying; “I compare it to someone who wears designer clothes – but with the badge on the inside. If you’ve got a tailor, you don’t go around telling people. These are people who like quality and substance rather than the label – people who believe that if you do a job, do it well.”

Right now, GMC is riding a huge high. YTD sales through February were up by more than 23 percent as Americans flocked to the GMC Sierra, which is just a notch above its Silverado brethren, and to the flagship Yukon and Yukon XL SUVs. The Yukon is coming off its overhaul, and in January and February alone sold more than 80% more units than the previous model did a year ago. GMC’s Terrain saw figures rise 20% from last year as well.

How does this all fit into “The Denali Effect”? Well for starters, 60% of Yukon sales are at the Denali trim level, meaning that they come in at more than $70,000. Roughly half of the heavy-duty sales of Sierra are Denali, putting them in the $50,000-$60,000 range. Also, about 30% of GMC’s Acadias sold are Denali trimmed.

Future Forecasts

It is safe to assume that GMC is benefitting from the drop in gasoline prices, which has unofficially given millions of Americans permission to look at big vehicles again, and also more financial leeway to be able to afford them. The GMC lineup is also getting a new boost from this season’s debut of the Canyon mid-size pickup, which has joined the Colorado as a hugely winning gamble by GM on the revival of a once-vast market segment that was abandoned at the onset of the Great Recession. So far the Canyon has sold nearly 5,000 units in the first two months of this year.

Currently the GMC brand owns 3% of the U.S. market share and is planning on boosting their sales to 4% in five years, and to 5% within the next decade. Plans are on the table to enter some SUV segments where GMC is currently absent, like the compact crossover market and possibly even the off-road market as a challenger to the Jeep brand.

At Finnegan Chevy Buick GMC, we have all of your GMC truck, SUV, and Denali needs met. Come stop buy our lot today and pick one of these exceptional vehicles today!

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