BIG PROFITS: GM Now Owns Two Thirds Of The Large SUV Market

General Motors sees a future for its large SUVs, despite recent departures by foreign importers.

“We’re happy with the market,” Chief Financial Officer Dan Ammann says at a press conference here to unveil Chevrolet’s ’15 model Suburban and Tahoe.

The two share advances with GM’s other ’15 model large SUVs introduced the same day, including more efficient EcoTec3 powertrains that deliver improved aerodynamics, a quieter ride and greater estimated highway fuel economy based on GM testing.

GM through August held 66.5% of the large SUV market, including sales of the Cadillac Escalade, according to WardsAuto data.

2015 Chevy Tahoe And Yukon Denali Full Line

2015 Chevy Tahoe And Yukon Denali Full Line

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nguyenvuminh - 9/14/2013 1:06:53 AM

+1 Boost

Absolutely understand GM going after this market from a financial perspective. Why leave money on the table when the US market can't get enough of this? That's my head talking. Meanwhile, my heart is saying can't wait for the day of the $4.50/gallon. Then a significant part of GM's revenue is going to drop off, with nothing to pay for overhead cost of their mfg plant. That's the operation side. Their GM Finance side is going to get stuck with trucks/SUVs that carry less value as their customers drop off their trucks.

Ford is still selling a lot of trucks/SUVs but at least they are working hard and succeeding at improving their non-truck models. I can't say the same about GM's non-truck model. I think Ford will be able to weather the next storm better, again.

trmckin - 9/14/2013 2:03:03 AM

+2 Boost

Just a thought but if you can afford a 50-60k SUV, it's going to take more than $4.50 a gallon. Not to mention, a good portion of those owners don't worry about money. if it isn't this, they will just go buy an expensive sports car that gets similar mpg and is less useful in the grand scheme of things. There is a segment of the population that gets a lot of use out if these vehicles for its intended purpose. Your heart is worrying about something not worth worrying about. If you want a Prius, go for it bud. That's your business. Or... Just play the hater card. Someone has to.

MorePower - 9/14/2013 5:09:14 PM

+1 Boost

@trmckin

I fear you are greatly over-estimating the financial intelligence of a large portion of these large suv buyers as well as the reason why GM is dominating the large suv segment.

The reason why GM is doing so well in the large suv segment is that they have no competition. Ford killed the Excursion and hasn't made any real changes to the Expedition in almost ten years. The Durango was never really a large suv, but a plump mid-sized one that was never pretty or "cool" enough to get invited to the party.

trmckin - 9/15/2013 2:18:13 AM

+1 Boost

No, I don't think I'm over estimating. We are talking new large SUVs. Fact is, prices today are very high in this segment and getting loans isn't as easy as it used to be. That's just how it is. People have choices in the crossover market now and pretty good ones at that. Today's Tahoe buyer isn't the same as it was in 1996. 1.25 Gas afforded these to many that at the time, could make it work. That isn't the case today. Too many good and affordable crossovers poaching those marginal customers.

As for GM dominating, i don't think I questioned that. There aren't many choices in this segment. A very dated Armada, dated Expy, dated Sequoia, and the Infiniti. Of course GM dominates as it should. They are the only ones keeping it somewhat new.

nguyenvuminh - 9/14/2013 11:20:09 AM

+1 Boost

trmckin - nobody is hating here, just someone getting really defensive. as to your notion that people that can afford 50-60K SUVs not worrying about high cost of gas, I thought all SUV segments dropped in sales in past gas price increase periods. If you can afford it, good on you. But many will not.

trmckin - 9/15/2013 2:22:04 AM

+1 Boost

That is just my point. Today's large SuV buyer isn't the same as the mid to early 90's. Gas has gone up thus forcing those marginal buyers out. Only ones left are people with money to burn. Hoping for more expensive gas isn't going to hurt that crowd much.

quizz - 9/14/2013 12:20:12 PM

+1 Boost

SUVs this size need 2 diesels, one for real towing work and one to offset fuel costs.

I95SPEEDINGTICKETS - 9/14/2013 4:22:15 PM

0 Boost

Till the next credit crunch or crude price hikes.

MorePower - 9/14/2013 5:12:19 PM

+1 Boost

Dear GM,

The company that lives on the profits of large suv sales, dies by the cost of increasing gas prices! In this horrible, divisive and corrupt U.S. political environment, you will not be bailed out again.