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GMC considers adding more vehicles to broaden product line

Tue, Mar 3 2015 GMC is considering expanding its product portfolio in the next 10 years to allow it to reach more potential buyers and grow sales, a top executive said Monday.

The small and midsize sport-utility-vehicle segments are two possibilities, said Duncan Aldred, GMC sales and marketing vice president. He also said GMC won't make a car, preferring to reinforce its reputation as a maker of trucks and SUVs.

"There's plenty of opportunities even if we define ourselves as a we do as a truck and crossover brand," he said.

He wouldn't comment on the possibility of adding a Jeep Wrangler-fighter, though rumors have swirled for months that GMC is considering a product to compete with the iconic off-roader.

"I can't confirm that ... everything's on the table," he said.

He also said that it's possible GMC could get a unique set of underpinnings – all of its vehicles share platforms that are also used by Chevrolet – but it's not needed to differentiate his brand.

"I'm very happy sharing underpinnings and everything else," he said. "All of the good-performing automakers do that."

Speaking to journalists at a roundtable at General Motors headquarters in Detroit, Aldred said GMC received an investment from GM that is double what the brand has historically spent to fund its growth plans. Advertising spending alone will increase 50 percent this year compared with 2014.

The brand rolled out a new ad campaign on Monday, called "Precision," that will underscore attention-to-detail and the premium features of GMC vehicles. Two of the commercials have a sporting theme, and the third focuses on modern menswear. GMC called it a "contemporary interpretation" of the brand's traditional positioning, and it will also continue to use its long-running "Professional Grade" tagline.

The premium positioning of the ads come as buyers are increasingly outfitting their trucks as near-luxury vehicles. The percentage of buyers opting for the top-end Denali trim has increased from 17 percent in the middle of 2014 to 21 percent now. The goal is to get Denali to make up 25 percent of GMC sales by the end of 2017, Aldred said. Spurred by the higher Denali take-rate, the brand's transaction prices leapt by $3,000 last year.

"It's [Denali] really kind of this jewel in the crown," Aldred said.

GMC sales increased 11.3 percent in 2014 to 501,853 units, making it GM's-second-best-selling brand behind Chevrolet.
New GMC Campaign Celebrates the Art of Precision
Features entire showroom for the first time since 'Professional Grade' debut

DETROIT – Precision can be the difference between winning and losing, or that element that separates ordinary from a cut above. GMC today unveiled "Precision," an advertising campaign promoting the brand's relentless attention to detail, a foundational value for the brand.

The multimedia campaign is part of a major investment by GMC this year that showcases GMC's full line of premium trucks, SUVs and crossovers, including its popular Denali sub-brand. The entire GMC showroom is featured in the campaign for the first time since the 2000 launch of tagline "GMC: We Are Professional Grade." The ads represent a broader, contemporary interpretation of the longstanding GMC positioning.

"For discerning GMC customers, Professional Grade has evolved to mean exacting attention to detail and fine craftsmanship in everything they do and purchase," said Duncan Aldred, vice president of GMC Sales and Marketing. "Precision is a core attribute of the brand and is reflected in GMC's continued momentum. GMC's year-over-year sales gains are a strong indicator that premium GMC attributes resonate with customers who seek more from their vehicles."

"Fastball," the first of three TV ads developed by GMC and agency-of-record Leo Burnett Detroit begins airing nationally in a 60-second ad on March 2. The ad's underlying theme is that the same precision and attention to detail applied by pro athletes and accomplished professionals translate to GMC engineers and designers. Ultimately customers who demand superior execution in the products they purchase look for the same level of precision and craftmanship.

"Fastball" opens with a panoramic view of a packed ballpark. The scene shifts to San Francisco Giants left-handed relief pitcher Jeremy Affeldt as he deftly paints the corners of the plate, a "Rembrandt" in baseball terminology. Striking out a batter is one thing; painting the corners of the plate to strike out the batter elevates his craft to a higher level.

As the narrator speaks, shots of Affeldt pitching alternate with GMC vehicle details, such as the French stitching on a GMC leather seat and a grille's sparkling meshwork.

"Precision, to me, is pretty much everything in the role I play on my team," said Affeldt, explaining that he continually pushes himself because a lack of precision can contribute to a loss on the diamond. Affeldt's precise fastball helped his team win the 2014 World Series.

"Swish," the second of the three TV ads, features basketball forward Harrison Barnes, of the Golden State Warriors, as he sends a ball clean through the hoop without touching the rim.

"When you have that perfect swish, you hear the net and it goes right in," Barnes said. "That's precision, and it's the best shot you can shoot. We're always striving for that precise movement and pure shot."

The third TV ad, "Sharp," draws a parallel with contemporary menswear. The ad juxtaposes the details of an impeccably dressed man, right down to his designer cufflinks, to the precision features on a GMC Yukon Denali.

The "Precision" ads will air throughout 2015, and the campaign will extend to digital, social and print advertising featuring every truck, crossover and SUV in the 2015 GMC lineup.

All three "Precision" ads open with an instrumental portion of The Who's "Eminence Front," chosen for its confident tone and technical, precise musical execution.

GMC has manufactured trucks since 1902, with innovation and engineering excellence built into all GMC vehicles. The brand is evolving to offer more fuel-efficient trucks and crossovers, including the Terrain small SUV and Acadia crossover. GMC's highest-volume vehicle, the Sierra pickup, is the most powerful light-duty pickup on the market, and the first full-size pickup to receive the highest-possible five-star Overall Vehicle Score for safety since the National Highway Traffic Safety Administration changed its New Car Assessment Program for the 2011 model year. Details on all GMC models are available at http://www.gmc.com/, on Twitter at @thisisgmc or at http://www.facebook.com/gmc.

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By Greg Migliore


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