GM wants to "redefine" the compact truck segment with the new Colorado and Canyon pickups.
General Motors expects to redefine the compact pickup truck segment when it returns to the market with redesigned versions of the Chevrolet Colorado and GMC Canyon in the second half of 2014.
The Detroit maker hopes the new models will deliver a 1-2 punch after the debut of all-new versions of its full-size Chevy Silverado and GMC Sierra trucks for 2014. Speaking at an industry conference in Traverse City, Michigan, GM chief financial officer Dan Ammann said the Colorado and Canyon will offer customers capable, versatile, fuel-efficient alternatives to full-size pickups.
“We see a segment that’s not being addressed,” he stressed, adding that, “We see a real opportunity,” once the trucks reach U.S. showrooms late next year.
GM’s confidence stands in sharp contrast to the position taken by Ford Motor Co., which abandoned the U.S. midsize truck market when it abandoned the long-lived Ranger pickup after the 2012 model-year. Ford has since introduced a new Ranger for overseas markets but says it does not see a solid business case for selling that truck in the U.S.
Not for us - Ford has no plans to bring the all-new version of the Ranger compact pickup to the U.S.
Chrysler has also pulled out of the compact segment – though it hints it could return. For the moment, that leaves only a handful of alternatives for potential buyers who don’t want a full-size option: the Toyota Tacoma and the Nissan Frontier, as well as the tweener-sized Honda Ridgeline.
The segment has been steadily shrinking, according to Tom Libby, an analyst with R. L. Polk. In 2012, just before GM pulled the old Canyon and Colorado models from production, it moved only 46,000 of the trucks, giving it a 16.4% market share. But observers also stress that this may be more about a lack of fresh, new product than a lack of potential buyers.
“We’re going to bring out a truck that redefines the (compact) segment,” added Ammann, who said this summer’s introduction of the new Chevrolet Silverado and GMC Sierra full-size pickups is “only the beginning to the truck story at GM.”
GM also plans to follow up with new full-sized utility vehicles and even a replacement for the big Cadillac Escalade is finally on the books.
During his speech at the annual Management Briefing Seminars in Traverse City, Michigan, the GM CFO declined to provide much detail about the new Canyon and Colorado models. But he suggested that unlike the past, the two models will be targeting different buyers. The Chevy will be positioned as a “sport truck,” the GMC as a “work truck.”
Like Ford, General Motors has continued building compact pickups in Brazil and Thailand but it decided to come up with two unique models for the American market. Ford has said it would have to take the same step if it were to return to the U.S. with a compact model because the new, international version of the Ranger would have to be priced too closely to the bigger F-Series, likely limiting sales potential.
GM will build the new Chevrolet Colorado and GMC Canyon models in Wentzville, Missouri.
While the new pickups aren’t expected to come close to the volume numbers of GM’s big Silverado and Sierra trucks, they should be critical to GM’s overall goals.
Ammann said GM’s basic strategy for winning and retaining customers requires introducing vehicles that are “winners” in their segment. The values also have to have to offer a compelling value proposition as well as top-notch quality. “Our success will be wholly dependent on our ability to retain customers over the long term,” he said.
Paul A. Eisenstein contributed to this report.