GMC Looks to Bring Compact Crossover to the Mix

The light truck and SUV market is heating up, and that also includes crossovers. General Motors lacks an entry in the subcompact crossover area, and there is rampant speculation that a new model might be in the offing. Right now, Jeep controls that segment with their Renegade, and GMC needs to find a way to start taking market share from Jeep as much as possible to take advantage of this boom period. The two Jeep models that are most likely to face new competition from GMC are the Renegade and the Wrangler. GMC needs to make a play soon so that it can start asserting its brand’s strength.

The crossover segment is large and growing, because it combines the construction of a car with the features of an SUV. Previously, mass market consumers shunned larger vehicles due to the higher gas consumption of heavier cars. However, the recent trend towards improved efficiency for all cars on the road, along with the low gas prices of the last year, have made crossovers and SUVs more attractive than they ever have before. Offroad vehicles have always had a cult following of enthusiasts, but recently Jeep has become the best-selling brand in the US thanks to wide appeal across its line.

GMC wants to get in on that growth, and a mass-market large crossover might be just the way to do it. The segment is a good fit for families, which not only offers a way to increase sales revenue, but also gives GMC a way to build their reputation across generations. It is important to consider not only the current market, but also the future of the brand. GMC will not confirm or deny that they have a new model in the works that is designed to compete with either the Wrangler or the Renegade, so if they are planning to expand they are keeping it quiet. But with gas prices expected to stay low for the next year and a new generation of Americans settling down and having families, this is the time to make a move. GMC has a lot of ground to make up, and there is a reason Jeep has been so successful for so long– the brand has an almost unshakable foothold and a huge, loyal following. It will certainly be an exciting few years in the industry as the titans battle it out for supremacy in the US market.