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GM cut brands, but why retain GMC?
As part of GM's recovery plan, they cut brands Pontiac and Saturn as well as trying to sell off some. So why continue the GMC brand along with Chev, Buick, and Cadillac? It seems like GMC's are SUV's, and pickups, along with some heavy trucks that basically duplicate Chevrolet. Why not eliminate GMC's as well?
Because GMC is profitable as a truck brand that's based off the same platforms as Chevrolet SUV's.
There's no way around it, GMC's have 100% product overlap with Chevrolet Trucks/SUV's. But because trucks and suv's have a much higher profit margin, GM makes good money on GMC because all the development costs are shared with Chevrolet rather than just being for GMC, in a sense they can develop two trucks (GMC Sierra and Chevrolet Silverado) for the price of one.
Also, GMC is actually GM's 2nd best selling brand behind Chevrolet, in fact GMC sells more cars than some car only brands. And with GMC being SUV/truck only, that's a very good thing.
I guess it's the whole, "if it ain't broke, don't fix it". GMC's SUV's and trucks are still selling well. Dealers are having a hard time meeting demand for Acadia and Terrain SUV's, especially the latter as it's brand new. Being GM SUV's, reliability is very good (GM's truck/suv reliability has always been better than its small car reliability).
Another thing about GMC is that it doesn't really compete with Chevrolet Trucks, it's more of a complement. While Chevrolet Trucks tend to sell more to middle-class families with a boat/trailer/cargo/dog or construction workers, GMC Trucks tend to sell to upscale families/professionals who are probably more interested in moving people over cargo successfully, the success of the Denali trim is proof of this. They both successfully market and sell to separate market segments.
Also, there's no guarantee that all GMC owners would automatically flock to Chevrolet, as weird as it seems, some people might actually flock to other brands if GMC were to shut down. And right now, GM sells more pickups than any other manufacturer. And it's not like you're straight up buying a Chevy with a GMC badge, GM does a very good job of making their GMC models very unique compared to their Chevrolet counterparts, just look at Acadia vs Traverse and Equinox vs Terrain, you'd be hard pressed to know they were based off the same platforms.
As for Chevrolet Trucks, you can't kill off Chevrolet Trucks, the whole Chevrolet vs Ford war is a PR goldmine, something about GMC vs Ford just doesn't sound right.lol
After everything, it really did make more sense to kill Pontiac and Saturn and keep GMC. Pontiac hadn't been building excitement for years and Saturn had been doing a poor job of being the import fighter GM originally imagined it to be. GM has enough performance with Cadillac V-Series and Chevrolet Super Sport, and Chevrolet is the brand that GM needs to position as the import fighter. And though GMC, Pontiac, and Saturn were/are all redundant when you take into consideration Chevrolet's lineup, only GMC was profitable as a brand (thanks to it's SUV only lineup).
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