Evinsioning a Diesel-Powered GMC Canyon: GM Could Move to Diesel If Rival Half-Tons Take Hold

In the near future, we could see General Motors (GM) pick-up trucks such as the Chevrolet Colorado and the GMC Canyon rolling out of the assembly lines with mid-size diesel engines.

According to various reports in trade publications that focus on the automotive industry, GM is keeping a close eye on the new diesel options offered by rivals Nissan and the Chrysler Group.

The prospect of a new Dodge Ram 1500 half-ton with a diesel power plant has GM executives thinking about their next move. The Nissan Titan pick-up truck would be a direct competitor, and Jeep is planning to offer a diesel option for its successful Grand Cherokee line in 2014.

What is interesting about the new diesel engine option on the Dodge Ram 1500 is its provenance. The 3.0-liter diesel engine is manufactured in Italy by VM Motori, a company which GM has a considerable stake in. In fact, the engine was originally developed at the request of GM, which means that the company could quickly react to market conditions by placing orders immediately.

Envisioning a Diesel-Powered GMC Canyon

Diesel is poised to make a strong comeback in the United States, and it is mostly a matter of fuel efficiency. In the past, diesel technology was abandoned in favor of gasoline-powered engines for various reasons. In fact, GM had a negative experience with diesel engines that unfolded right when U.S. car buyers expressed their preference for gasoline power plants.

The new diesel-power technology, however, emphasizes fuel efficiency, clean emissions and a pleasant driving experience. The North American automotive market ruefully ignored the new diesel paradigm for many decades while Asian and European markets have been enjoying its benefits, but that is about to change. The number of diesel-powered models in the U.S. is expected to double in 2014.

For a manufacturer such as Nissan, diesel is a new proposition, but not so for GM. Mid-size and pick-up truck owners in the U.S. are ready to embrace the improved torque, performance and fuel-efficiency of new diesel technology, and the GMC Canyon/Chevy Colorado is the perfect candidate.

A 3.0-liter diesel power plant on a GMT355 platform could feature a 5-speed manual or 4-speed automatic transmission. This would make the GMC Canyon or Chevy Colorado a powerful, fuel efficient pick-up truck. For the time being, GM will continue to monitor the sales and performance of the Nissan and Dodge diesel offerings before making a move in that direction, but GM should not ignore Toyota in this regard.

GM would have an upper hand in pricing with regard to diesel power plants. Competitors such as Dodge and Nissan are forced to place considerable premiums on their new diesel pick-up trucks, something that GM could address with competitive pricing and market experience.