GM is making big bet on small pickup truck market

[wildmanjoe]

Link:

http://content.usatoday.com/communities/driveon/post/2011/09/gm-general-motors-chevrolet-colorado-small-pickup-trucks/1?csp=obinsite

GM is making big bet on small pickup truck market

Is the upcoming Chevrolet Colorado pickup the solution to a problem that has vexed automakers for years, or the answer to a question nobody asked?

Chevrolet is betting hundreds of millions of dollars and several hundred jobs the new midsize pickup will breathe life into what some automakers consider a dying market segment -- small and midsize pickups. The UAW says the pickup is scheduled for production at GM's assembly plant in Wentzville, Mo., as part of the automaker's new contract with the union.

Smaller pickups were once a vital part of the U.S. auto industry. They helped automakers meet fuel economy requirements. They were the affordable new vehicle of choice for many young buyers.

They've dwindled to virtual irrelevance. Their price and size grew close to that of full-size pickups such as the Chevrolet Silverado and Ford F-150, and good small cars replaced them among first-time buyers. Midsize pickups account for about 2.2% of vehicle sales so far this year, according to figures from Autodata. The Ford F-150 alone outsold all seven small pickups on the market nearly 2-to-1 through August.

"Manufacturers killed their own vehicles by hyper-discounting full-size pickups" to the point where a bigger, roomier and more powerful truck cost about as much as a midsize, said Jim Hall, managing director of 2953 Analytics in Birmingham, Mich.

Automakers are fleeing the segment like a burning building. They feel there's no money to be made there. Chrysler stopped building the Dodge Dakota earlier this year. Ford Ranger production ends soon. The Honda Ridgeline is expected to disappear when the current model goes.

Nevertheless, GM's product-development brain trust has had its eye on the segment for years. They're convinced there's a market for small trucks, if you get the formula right.

For the new Colorado to succeed, Chevy must charge less or give buyers more. Preferably both.

The pickup was engineered to be rugged, capable and inexpensive. GM's Brazilian tech center developed it with an emphasis on creating a tough, versatile vehicle. It will be a mainstay of Chevy's lineup in Asia, South America, Africa and the Middle East. The current Colorado, and its sibling the GMC Canyon, were developed by former GM partner Isuzu.

Toyota has proven you can make money and win loyal customers if you build a great small or midsize truck and price it appropriately. The Tacoma is a mainstay of Toyota's lineup. Though many automakers desert the segment, Toyota plans to introduce an all-new version next year.

The Tacoma is the definitive vehicle in its class. To succeed, the new Colorado will have to convince buyers its price, fuel economy, size and features match or beat the new Toyota. That won't be easy.

Early indications are the new Chevy will be slightly smaller than the current Colorado and Tacoma. It may get a diesel engine to boost fuel economy significantly. It's likely to offer several variations of cab and bed size.

"It's going to be interesting," Hall said. "The market will ultimately decide" if the wiser strategy is to build a better small pickup or ditch the segment and concentrate on larger trucks.

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This is the part that's really irritating:

Automakers are fleeing the segment like a burning building. They feel there's no money to be made there. Chrysler stopped building the Dodge Dakota earlier this year. Ford Ranger production ends soon. The Honda Ridgeline is expected to disappear when the current model goes.

GM should focus on what makes people buy smaller trucks in the first place (easy to maneuver, good on gas, affordable, etc). Make sure Chevrolet gets the 4cyl/manual/rubber floor mat version to sop up any left over Ranger business, give GMC a Denali version and GM should have their bases covered. Thoughts?

[daves87rs]

If it's priced right......I might just skip the Cruze for this.

Was a big fan of the s-10.....a simple extended cab truck under 20 grand....call me interested.

Simple cheap trucks will sell...

[GMTruckGuy74]

Oh, this truck has definitely got my interest, preferably a GMC version. A crew cab that can comfortably haul my family (the wife and my two little ones, the older one has his own car now ), or a regular cab 4WD could be a nice "toy" for my personal use. Though I crave a full-size Sierra, an appropriate styled GMC Canyon replacement could easily suite my needs (I still drool at '04-'09 Canyon regular cab, off-road packaged [aka Z71] 4WDs seen on the road).

[ocnblu]

Well of course I'm highly interested in seeing this come to fruition. Regular cab 4WD diesel manual mid-level trim Chevy with big tires is my style. In blue or green.

There has to be a way the manufacturers can ween themselves off the deep, DEEP fullsize pickup discounts so the smaller trucks have room in the market at large... although I am not one of those who'd default to a larger truck. I will always prefer the smaller truck as it is much handier in day-to-day use.

I hope we don't get the tadpole/car front end... but even if we do... I might swallow that pill and go for it anyway.

[hyperv6]

They are saying what I have been saying that the price is key.

One thing we all have overlooked here is this is also a global vehicle unlike any of the past small trucks. The Colorado, S10, Ranger and Dakota were never sold or were limited to just a few markets. This truck will be like the Toyota and sold world wide. This should help GM control the cost as it should be an easy sell in the world market.

It may not be long before we see them in the Amazon or loaded with guns in Libya. I swear that the Rebles in Lybia have gotten Toyota more free air time than anyone. LOL!

Anyways this truck will be sold much differently than the past small GM trucks and that should help the bottom line since it will not have to rely on just one market like in the past.

[daves87rs]

They are saying what I have been saying that the price is key.

One thing we all have overlooked here is this is also a global vehicle unlike any of the past small trucks. The Colorado, S10, Ranger and Dakota were never sold or were limited to just a few markets. This truck will be like the Toyota and sold world wide. This should help GM control the cost as it should be an easy sell in the world market.

It may not be long before we see them in the Amazon or loaded with guns in Libya. I swear that the Rebles in Lybia have gotten Toyota more free air time than anyone. LOL!

Anyways this truck will be sold much differently than the past small GM trucks and that should help the bottom line since it will not have to rely on just one market like in the past.

True!

[Robert Hall]

They are saying what I have been saying that the price is key.

One thing we all have overlooked here is this is also a global vehicle unlike any of the past small trucks. The Colorado, S10, Ranger and Dakota were never sold or were limited to just a few markets. This truck will be like the Toyota and sold world wide. This should help GM control the cost as it should be an easy sell in the world market.

As far Toyota, the Tacoma is US and Canada only--the global Toyota pickup is the smaller Hilux. Not sure about Nissan, IIRC the Frontier was sold in Europe as the Navara.

[hyperv6]

They are saying what I have been saying that the price is key.

One thing we all have overlooked here is this is also a global vehicle unlike any of the past small trucks. The Colorado, S10, Ranger and Dakota were never sold or were limited to just a few markets. This truck will be like the Toyota and sold world wide. This should help GM control the cost as it should be an easy sell in the world market.

As far Toyota, the Tacoma is US and Canada only--the global Toyota pickup is the smaller Hilux. Not sure about Nissan, IIRC the Frontier was sold in Europe as the Navara.

The Hilux is not all that different and I am sure they share enough parts to help keep prices in line.

You figure with the new Colorado it will be sold here in NA, S America, OZ, Asia, South Africa, poss India and Europe. It could really do wonders to spread cost out and to spread Chevys Image. This litterly could be the best selling Chevy in the world.

[ocnblu]

LITTERLY.

[ocnblu]

OOOOO K... I am excited and I hope we see a production version of our new GM compact truck sooner rather than later. Who's with me?

[GMTruckGuy74]

OOOOO K... I am excited and I hope we see a production version of our new GM compact truck sooner rather than later. Who's with me?

[GMTruckGuy74]

To be honest, I totally fell in love with this 2011 GMC Canyon SLT Crew Cab Off-Road (Z71) 4WD in Merlot Jewel Metallic back at my local dealer around the beginning of the year:

My biggest disappointment with it, other than the plain-looking interior, was the fact the rear seat area wasn't as comfortable as I'd like it to be (an infant car seat and a child's booster seat took up the entire seat and were too close to the back of the front seats [can't stand being kicked in the back ]).

Hopefully the replacement Canyon (if the GMC version comes out, and if the Colorado is even sold here in the States) will have more legroom in the rear of the crew cab model.

It's a shame that beautiful red color is gone for 2012

[hyperv6]

To be honest, I totally fell in love with this 2011 GMC Canyon SLT Crew Cab Off-Road (Z71) 4WD in Merlot Jewel Metallic back at my local dealer around the beginning of the year:

My biggest disappointment with it, other than the plain-looking interior, was the fact the rear seat area wasn't as comfortable as I'd like it to be (an infant car seat and a child's booster seat took up the entire seat and were too close to the back of the front seats [can't stand being kicked in the back ]).

Hopefully the replacement Canyon (if the GMC version comes out, and if the Colorado is even sold here in the States) will have more legroom in the rear of the crew cab model.

It's a shame that beautiful red color is gone for 2012

At least I am not the only one who wants to love this truck but have a hard time doing so.

My thoughts too. Great color but after spending time with one just like this recently it told me I made the right choice not buying.

The interior was as you said plain. I first found the rear doors narrow and then the back seat leg room lacking.

Then I got to the bed. I can haul much easier in the HHR than this as long as the item is not tall. I just hauled home a 8' 2x6 with no issue in the HHR and thought if I had that Colorado it would have stuck out a long ways.

I used the Silverado and HHR to move many items since we just got into the new house. If I had a Crew Colorado I would have been at a disadvantage.

I suspect much of these issues will be addressed and I think we already have a good idea when and where this truck will be built here already. I think Chris D and the UAW agreement pretty much has let us know where we stand.

I really think the new truck priced right will catch Ford and Chrysler flat footed. GM could easily own this segment for a while till they catch up. By then I would hope they move the ball forward.

The 4 cylinder engines will be interesting. I know we can count on a NA 4 and I expect a turbo 4. The question will be do they offer a Diesel or a V6. I would say a Diesel is a good bet but the V6 I expect will not be offered or even needed with the right turbo engine.

Lets hope they keep this color!

[Camino LS6]

If they get this truck right, the timing will be perfect.

[ocnblu]

Here's a look at the production version. Yay on the regular cab, but only if it comes with a 6-foot, smooth-sided bed. Exposed tiedown hooks are fine for San Paulo, but not Lancaster.

[GMTruckGuy74]

Here's a look at the production version. Yay on the regular cab, but only if it comes with a 6-foot, smooth-sided bed. Exposed tiedown hooks are fine for San Paulo, but not Lancaster.

Are you happy with the rear bumper?

[hyperv6]

I would trash the crew cab. It looks too odd and the bed is worthless. I wish they would use a longer frame and do it right.

[ocnblu]

Yes GMTG, I am happy with the rear bumper!

I wouldn't have a crew cab, but it sells very well to people who will use it as a family vehicle.

[Robert Hall]

The side window treatment of the Crew Cab reminds me of the Tacoma..

[thedriver]

That looks almost TOO much like the 2013 Malibu. I'm not a fan of this.

[GMTruckGuy74]

I'm starting to drool for a Canyon again... look at those rims!

[Drew Dowdell]

They are attractive trucks... if only the interiors weren't so

[ocnblu]

Does look sharp with those rims, whoa.