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Industry Report: Brand Management Costing GM Too Much Money

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Khatir Soltani
Does the General Really Need GMC when it already has Chevy Trucks?
So, with that in mind, does a stand-alone truck brand like GMC still make sense? It does for Hummer, to some extent at least. But unlike Hummer, GMC doesn't enjoy any proprietary models that would otherwise allow buyers a unique ownership experience, as apposed to what is available somewhere else in the GM lineup. At least GMC doesn't offer anything that couldn't be made available by offering a variety of trim upgrades across the street at the Chevy dealer. Label top-line Silverados, Tahoes and Envoys with the Denali badge if you like, add an extra splash of chrome on
While Chevrolet stores sell Chevy trucks and SUVs, the GMC nameplate is retailed by Pontiac-Cadillac-Buick-GMC retailers. (Photo: Shawn Pisio, Canadian Auto Press)
the grille, subtle styling upgrades and a few extra features, all of which should be ample to woo such buyers away from GMC over to the bowtie truck brand - that is if GMC no longer was in the retail business and all that was left was Ford, Dodge and a smattering of imports.

The last hurdle GM would have to jump, or at least dance around would be dealing with its dealer body. While Chevrolet stores (which also previously sold Oldsmobile products) sell Chevy trucks and SUVs, the GMC nameplate is retailed by Pontiac-Cadillac-Buick-GMC retailers. So really, the only way to work out dissolving GMC would be by integrating all makes into each retailer, similarly to how Chrysler Group brought its three brands under one roof after ridding itself of Eagle and then Plymouth. There would be fallout, of course, with some dealers covering the same territory, but with the auto market as competitive as it is there will inevitably be fallout anyway. Better to have one successful dealership than two marginal ones, after all.

While GM's recent announcement that it will be bringing nine new crossover vehicles to market by the 2009 model year is a positive step
But if GM was planning to kill its truck brand, it probably wouldn't have expended energy and dollars creating the GMC Graphyte concept earlier this year. (Photo: Trevor Hofmann, Canadian Auto Press)
toward greater competitiveness for the automaker overall, there are some industry analysts questioning whether one such model will actually wear a GMC badge.

But if GM was planning to kill its truck brand, it probably wouldn't have expended energy and dollars creating the GMC Graphyte concept that only recently debuted in Detroit earlier this year. And, if it were to come to market with something truly exclusive, keeping the GMC nameplate, and its arguably legendary heritage alive might make sense. But this is an expensive prospect, and one that still probably makes little sense of GM, as even a proprietary product would inevitably compete directly with other GM vehicles within alternative GM brands. It's a tough pill to swallow, but GM simply has too many nameplates, and with that too much redundancy.
Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 8 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada