How many full-size GMC hybrids is one too many?
In orthodox marketing theory, companies are supposed to make fewer vehicles than demand warrants. That way profits are optimized. Since loss-making General Motors needs cash flow of any kind, adding a third full-size hybrid to the battered GMC truck bypasses that sound business strategy, whether or not low volumes compared to program and marketing costs means slim to non-existent margins. GMC now has the dubious distinction of being the first brand to offer three, count ’em three, full-size truck hybrids in a market and at a place — the New York Auto show in NYC, where such offerings are out of fashion.
The 2009 Yukon Denali hybrid is essentially an expensive trim upgrade of the Yukon introduced last year. It offers seating for eight, towing capacity up to 5,800 pounds and provides an estimated 21 mpg in city driving (2wd) by using GM’s two-mode hybrid system.
“The eight-passenger GMC Yukon Denali Hybrid goes just as far on a gallon of gas in the city as a much smaller, V-6 Toyota Camry sedan,” said Susan Docherty, vice president, Buick-Pontiac-GMC. “And in terms of fuel savings, the GMC Yukon Denali saves about 250 gallons of fuel a year over the Lexus GX 470.”
Let’s see at $3 for a gallon of regular that’s $750 savings a year for a truck that weighs almost four tons empty with a sticker price that starts at $59,185 (2WD) and $62,030 (4WD), including the destination charge of $950. Of course that’s before generous rebates and other incentives, but nonetheless this is an expensive vehicle.
The complicated hybrid system uses two electric motors in a, ahem, four-speed automatic transmission that’s mated with a 6.0-liter V-8 engine with late intake valve closing and variable valve timing. It produces 332 horsepower and 367 foot pounds of torque. Regenerative braking, electric power steering and an electric air conditioning compressor are part of the setup.
Once you get past the 22-inch wheels, the trim upgrade is largely inside. Standard are 12-way power, heated/cooled partial- leather front seats, and heated, second-row, bench seating. Buyers may choose an Ebony or Cashmere interior. The only three options are a sunroof, rear-seat entertainment DVD system and side “blind-zone” alert mirrors. The GMC Yukon Denali Hybrid arrives in May at Buick-Pontiac-GMC dealer showrooms. It joins the Yukon Hybrid and Sierra Hybrid pickup truck in the hybrid lineup.
Here is another example of how GM got to the point that it is in today. This program should have been canceled before it reached production and the money put toward a hybrid in the auto sector.
Based on this offering, the other GMC in the previous story, and the dearth of car news from GM, it’s kind of obvious that they’ve got essentially nothing in the car pipeline except for the probably overpriced for the market Volt. Assuming, of course, that they are around long enough to bring the Volt to market. As I’ve stated before, I’ve never been a big GM fan since I spent most of my teenage years (the 70s) under the hoods of the family Olds and GMC trying to keep the things running. But having said that, GM’s (and Chrysler’s) plight make me sad for my country. The absolute bankruptcy of competence that is the defining characteristic of American corporate management is demonstrated nowhere better than the auto industry. Combining that with the suicidal greed of Wall Street is destroying the American middle class dream.