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GMC DENALI, AT4 SUB-BRANDS ARE OUTSELLING CADILLAC

GMC Has A Portfolio Full Of Cash Cows

2021 GMC Yukon Denali GM SUV T1 Platform
Photo copyright MuscleCarsandTrucks.com

Dealers say that the 2021 GMC Yukon AT4 isn’t in their showrooms yet, but customers are already ordering them sight unseen. Meanwhile, the GMC Denali sub-brand continues to be the storied cash cow that it’s known for. These sub-brands are so successful, in fact, that Automotive News reports that they’re outselling Cadillac, accounting for 40 percent of GMC’s total retail sales in 2020. It’s estimated that future sales charts could see AT4 and Denali accounting for as much as 50 percent of total GMC retail sales volume.

It’s not low-end Denali or AT4 models that make up the majority of this mix, either. Average transaction prices are 30 percent higher than the industry overall, at $57,218 for a Denali and $53,989 for an AT4. These figures are said to be higher than ATPs enjoyed by the likes of BMW, Audi and Jaguar.

2020 2021 GMC Sierra 2500 HD Denali

In the first nine months of 2020, sales of the GMC Sierra pickup truck rose 6.8 percent, vs. an 8.8 percent decline for other full-size pickups, per the report. Meanwhile, sales fell 17 percent for Chevy and 25 percent for Buick and Cadillac. The 2021 GMC Yukon is just getting to market, and dealers are already seeing pent-up demand, selling them sight unseen. The 2021 GMC Yukon starts at $51,995, while the range-topping four-wheel-drive Denali model starts at $72,695. The Yukon AT4 starts at $66,095. Analysts opine that these price differences between models goes directly into GM’s coffers to fund ambitious business ventures like future electric vehicle programs. Vehicles like the upcoming Hummer EV, which will be technically counted as a GMC product.

With high-margin full-size trucks like the Sierra 1500 and Sierra HD, utility vehicles like the Yukon AT4 and Yukon Denali, and even an upcoming “all-electric supertruck” with the Hummer EV, GMC currently enjoys a vehicle portfolio that’s absolutely stacked with vehicles where the only thing greater than their profit margins is the demand for them. As for Cadillac, the 2021 Escalade family stands out in a lineup of low-selling sedans, and ho-hum crossovers. Perhaps the future of the Cadillac lineup will rely on expanding the Escalade portfolio as much as possible.

2021 Cadillac Escalade Platinum
Photo copyright MuscleCarsandTrucks.com

Written by Manoli Katakis

Detroit Region SCCA Member and founder of MC&T. Automotive Media Jedi Knight. Not yet the rank of Master.

One Comment

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  1. I always thought the Yukon Denali was better than the Escalade. Now that the Ultimate Denali is coming it’s no contest IMHO

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