While most car brands are looking to diversify and add as many models as possible, GMC could be one and done.
The super-sized Yukon Denali has introduced General Motors’ ‘professional grade’ brand to the Australian market, but it appears unlikely it will be joined by anything else from the GMC portfolio anytime soon. That’s because the GMC, Chevrolet and Cadillac line-ups all overlap for our market, leaving General Motors Australia little wiggle room to create space for other additions, such as the Sierra 1500 pickup or the Terrain and Acadia SUVs.
GM Australia boss, Jess Bala, isn’t closing the door completely, but it appears unlikely there will be anything else from the GMC portfolio headed our way unless the Yukon proves to be a smash hit.
”I mean, we’re always assessing what might make the most sense for our market from an opportunity standpoint, from within the GM portfolio,” she said. “So I would say that that work’s never done. We’re having discussions all the time.”
However, the problem the GMC brand faces, the same as Chevrolet, is the high cost of converting its left-hand drive vehicles to right-hand drive. While GM Australia has a 140-strong workforce within the Promoso conversion operation (which is part of the wider Walkinshaw Automotive Group), naturally the local work adds cost to what are already expensive vehicles.
This effectively rules out the ‘smaller’ models such as the Terrain, Acadia and Canyon ute, as they would not be cost competitive against factory-right-hand drive models. Notably, Bala left the door open for more factory right-hand drive models, but only if more markets around the world support the program – as is the case with Cadillac.
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“ Definitely for conversion, a hundred percent, you’re a hundred percent correct,” she said. “But we’re always in conversations as GMs working through product plans and next generations and things like that. When and if there might be an opportunity to study right-hand drive in the plant. That depends [on many factors]. It’s got to be a much bigger global study, obviously extensive business cases, things like that.”
There’s also the possibility that, if the market for US-style pickups and SUVs continues to grow, GM Australia could look to the more premium version of the Silverado, the GMC Sierra 1500, as a possible new addition, as well as the even bigger Yukon XL SUV.
“To your point, what could we look at potentially converting here? We’re always working with Promoso very closely,” Bala said. “They do a phenomenal job of finding efficiencies, cost savings and things like that. And then also learnings as they go.
“Anything’s possible,” she said. “We haven’t, we haven’t confirmed that we’re doing anything like that right now. We’ve had a lot of success with Silverado. So we are committed to that. But we will always look at what options are out there and see what fits the market at the time.”
The other model in the GMC portfolio with potential for Australia is the Hummer EV SUV and ute. Unfortunately, Bala and GM Australia previously ruled it out on cost grounds, as it begins at US$96,550 (approx. $150,000) before the cost of importing and converting it to right-hand drive.
So, for the foreseeable future, the Yukon Denali will have to carry the entire GMC brand in Australia.
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