2024 Sierra EV Denali Edition 1
Source: General Motors
Milford, MI— General Motors Corporation's The premium GMC brand hopes to become the leader in all-electric truck sales to U.S. consumers with the launch of its new electric Sierra pickup truck.
The Sierra EV joins electric versions of the Hummer, including SUVs and pickups, in GMC's electric “truck” lineup. The automaker expects the Sierra to become the best-selling model in GMC's electric lineup as lower-priced models are introduced next year. “First Edition” vehicles, worth about $100,000, recently began being delivered to customers.
“We believe this is a completely different proposition than anyone has ever put out before,” Duncan Aldred, GMC's global vice president, told CNBC at GM's proving grounds in suburban Detroit. “So we Be confident about demand.
GMC did not disclose a timetable for when the brand expects to lead retail electric truck sales. But to do that, it must outsell its sibling, the Chevrolet Silverado EV, as well as its rivals Ford Motor Company, Rivian Cars and TeslaMotor Intelligence reports that the company led Cybertruck sales in the second quarter.
Aldred said he believes there will be cross-buying between the Sierra and Cybertruck, but he doesn't necessarily consider them to be major competitors, even though the vehicles are priced similarly. Citing internal data, he said many Cybertruck buyers already own Teslas, while about 80% of GMC Sierra reservation holders previously owned non-GMC vehicles.
“As far as we know, about 70% of Cybertruck buyers are Tesla owners,” he said at a media event. “So, they're not necessarily truck buyers, they're Tesla buyers.”
developing markets
Automakers such as General Motors are rushing to launch all-electric pickup trucks, in part because Tesla plans to produce such vehicles. That has led to concerns that the U.S. electric vehicle leader will dominate the truck market, which is as important to the Detroit automaker as it is to electric vehicles.
Duncan Aldred, vice president of sales for General Motors Company Buick-GMC, speaks next to a GMC Sierra Denali HD truck on display during an event in Chula Vista, California, U.S., Tuesday, January 22, 2019.
Sandy Huffaker | Bloomberg via Getty Images
But the adoption of electric vehicles has It's been slower than many expected, and the electric truck market is still in its infancy.
The all-electric pickup market sold about 38,500 units in the first half of this year, including retail and fleet sales, according to Motor Intelligence. By comparison, more than 1 million full-size pickup trucks, conventional or hybrid, were sold this year through June.
Ford's F-150 Lightning, the sales-leading all-electric pickup, had sold 15,645 units through June, according to Motor Intelligence. The Tesla Cybertruck followed closely behind, with sales of nearly 11,600 units in the same period, including 8,755 units in the second quarter, leading the segment, according to the automotive data and analytics company.
According to Motor Intelligence, GMC's Hummer pickup production and sales have grown slowly, with the final production volume being less than 1,500 units, including approximately 1,100 units in the second quarter.
“This is a very junior market. It's just getting started. For GM, they're confident they'll be the leader in this space because of their history with trucks and their understanding of being able to transition to electric vehicles is Reasonable,” said Stephanie Brinley, chief automotive analyst at S&P Global Mobility. “The big question now is how quickly consumers (adopt electric trucks), not the product attributes.”
Including all-electric SUVs from those brands, which some companies like General Motors report in their truck sales, Rivian emerged as the clear leader with sales of more than 22,700 R1S SUVs and R1T pickup trucks in the first half of the year. By comparison, GMC sold about 4,600 Hummer SUV and pickup models.
Aldred said GM expects to ramp up production of the Sierra EV, including the AT4 off-road and entry-level Elevation models next year, faster than the Hummer model that took years. General Motors said production of the Denali version of the car is expected to begin in the fourth quarter.
The Sierra EV is now GM's third electric pickup truck, including the Hummer and the new Chevrolet Silverado, which began hitting dealers in December.
Chevrolet vs. GMC
The Sierra EV's closest competitor is arguably the Chevrolet Silverado EV. Both are based on General Motors The “Ultium” vehicle platform shares many components, functions and performance features with the U.S. Air Force.
The Detroit automaker differentiates its vehicles through interior and exterior design and brand personality.
“Chevrolet is really focused on the fleet side. We're really focused on the retail side, just like with (internal combustion engine) trucks. When you look at it, the electric truck space is a premium space,” Aldred said.
The all-electric Chevrolet Silverado at the New York Auto Show on April 13, 2022.
Scott Mullin | CNBC
Silverado currently comes in a pricey sport version, priced at about $96,500, and a work truck designed for fleets and commercial customers, starting at about $67,000.
The Sierra is more refined and luxurious than its Chevy counterpart: It has open-pore wood, a larger screen, standard hands-free highway Super Cruise driving, GMC's “Crab Mode” and four-wheel steering.
“GM has done a great job of differentiating GMC and Chevrolet,” S&P Global’s Brinley said. “The GMC Sierra and Chevrolet Silverado EVs look very different, and GM has been with both customers for decades. It's a good collaboration. They understand what they need to do to appeal to GMC buyers rather than Chevy buyers, and they have a very subtle difference.
2024 Sierra EV Denali Edition 1
Source: General Motors
Both cars have an EPA-rated range of 440 miles and offer up to 754 horsepower and 785 pound-feet of torque. Important to many truck customers, they can also tow 10,000 pounds and charge 100 miles in about 10 minutes using a DC fast charger.
A unique feature of the Silverado and Sierra EV compared to other electric vehicles is the “midgate” feature, in which the vehicle's rear seats fold and the rear glass extends to create a nearly 11-foot-long truck bed with a large cargo area.
Based on the GMC brand
Patrick Finnegan, GMC senior marketing manager for trucks and SUVs, said the Sierra EV, including the Denali version, is expected to continue to assist GMC in increasing its pricing power and reputation as a premium truck brand.
GMC's average transaction prices and premium models increased due to the new off-road AT4 and the Denali, which is celebrating its 25th anniversary as a GMC sub-brand.
For example, the average transaction price for GMC's traditional Sierra pickup truck is about $60,000. That includes the Denali model, which sells for about $71,000, and the Denali “Ultimate” model, which sells for $78,500, according to the company.
2024 Sierra EV Denali Edition 1
Source: General Motors
GM has yet to announce pricing for the electric GMC Sierra Denali, AT4 and Elevation models that will follow the 2,500 “Edition 1” models. But Aldred did say that the Sierra may qualify for a federal tax credit of up to $7,500, which would mean it would cost less than $80,000.
Denali models have evolved from simply being tweaked to differentiate themselves from other vehicles to offering their own interiors, parts and features. These vehicles still largely share the same “bones” but offer More luxurious features and materials.
GMC says the Denali model accounts for about 34% of GMC's retail sales. This is up from 18% a decade ago and 30% in 2019.
“This will continue to help protect our space in the premium ASP space. It will help us open the door to new customers,” Finnegan said. “We intend to be the retail leader in electric vehicle trucks, and we're going to have a more comprehensive offering to really help us do that.”