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    Denali Makes Big Money For GMC


    • GMC is raking in the money thanks to Denali

    Nearly 20 years ago, GMC decided to create a luxury version of its Yukon SUV called the Denali by putting on some chrome wheels and leather upholstery. Today, Denali is available on most of GMC's lineup and makes up 25 percent of total sales. It also makes GMC a lot of money.

    Motor Authority reports that the Denali trim gives GMC highest transaction price of any non-luxury brand in the industry. To put it another way, if GMC was its own automaker, it would be ranked 150th in the Fortune 500 list. How is this possible? You only need to look at GMC's top vehicles. Close to three out of four Yukons sold are Denali with price tags beginning at $65,000 and climbing. 50 percent of Sierra HDs are Denalis with average transaction prices ranging from $60,000 to $75,000.

    Source: Motor Authority



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    This has been a big deal for GM and GMC. They add some cheap chrome and some stitching and get a bigger price for it. The Denali has created an image that many must have with customers.

    This must have is something that is not easy to create at will and when you do it is a gold rush. I only hope Cadillac can only find a combo that works just as well.

    To me I would be just fine with a SLT2. I priced a Canyon Denali and while a nice truck it is not worth the extra cost to me. The only real hardware was the heated steering wheel and 20" wheels. The rest is chrome. 

    While the Denali is not for me more power to GMC to sell them.

    I would like the Denali to add more hardware content and get an even higher price. That would really make them different from Chevy.

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    I agree with Hyper, it isn't for me but more power to them to sell a Tahoe with wheel and trim upgrades for $70k.   You charge what people are willing to pay.  Of course it is huge money maker.  It is like Porsche charging $750 for painted air vents or $1,500 to have a 911 logo painted on the door.  People pay for that crap and it is pure profit.

    And agreed again with Hyper on there being some powertrain upgrade, like maybe a turbo or hybrid system on the Terrain and Acadia Denali trims that other wise are mechanical twins to the Chevy.

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    Denali packages of features is good, but I hate all the chrome. I want a monochromatic model with all those features. Sadly you cannot order up a Denali, minus the chrome. :palm:

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    41 minutes ago, smk4565 said:

    I agree with Hyper, it isn't for me but more power to them to sell a Tahoe with wheel and trim upgrades for $70k.   You charge what people are willing to pay.  Of course it is huge money maker.  It is like Porsche charging $750 for painted air vents or $1,500 to have a 911 logo painted on the door.  People pay for that crap and it is pure profit.

    And agreed again with Hyper on there being some powertrain upgrade, like maybe a turbo or hybrid system on the Terrain and Acadia Denali trims that other wise are mechanical twins to the Chevy.

    It is more than just trim. It also comes with the 6.2L found in the Escalade. It is a similiar formula used by all Luxo makes including your Benz.

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    46 minutes ago, dfelt said:

    Denali packages of features is good, but I hate all the chrome. I want a monochromatic model with all those features. Sadly you cannot order up a Denali, minus the chrome. :palm:

    Bingo, Bango, Bongo. Denali + painted trim = :heart:

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    12 minutes ago, surreal1272 said:

    It is more than just trim. It also comes with the 6.2L found in the Escalade. It is a similiar formula used by all Luxo makes including your Benz.

    Not in most versions of the Denali line.

    There are a couple perks here and there but not many. The magnetic suspension on the truck is one but the Canyon, Terrain, Acadia and others they will sock you for nearly $3.5K more and give you nothing but cheap plastic trim.

    In the case of the Canyon I would rather keep the money and get the SLT2 for much less and skip the heated steering wheel.

    I wish they would use a solid formula of a few extra HP in all version and standard AWD in all models. really give you something for the money.

    But then again if people keep buying them like this who can blame them for not adding the extra real hardware. It is less work and more profits.

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    14 minutes ago, surreal1272 said:

    It is more than just trim. It also comes with the 6.2L found in the Escalade. It is a similiar formula used by all Luxo makes including your Benz.

    Can't that 6.2 also be bought in Silverados though?  So it really isn't an upgrade as much as just giving them the top engine to justify the price. Not a bad thing, but it really isn't an "upgrade" if it can be had in lesser models.

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    50 minutes ago, dfelt said:

    Denali packages of features is good, but I hate all the chrome. I want a monochromatic model with all those features. Sadly you cannot order up a Denali, minus the chrome. :palm:

    Not a big fan of all the chrome either.

    I am going to look at the ZR2 just because it is more truck for the money and no chrome than the Canyon Denali. The Denali is about $10K more and for what?

    Just now, ccap41 said:

    Can't that 6.2 also be bought in Silverados though?  So it really isn't an upgrade as much as just giving them the top engine to justify the price. Not a bad thing, but it really isn't an "upgrade" if it can be had in lesser models.

    At one time the only way to get it in a half was in the Denali it also came standard AWD. They kind of lost that formula as it moved on.

    I bought our Terrain a month before they showed the Denali version. I was not upset for what they offered vs. what more they charged. Heck the V6 is not even standard.

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    41 minutes ago, surreal1272 said:

    It is more than just trim. It also comes with the 6.2L found in the Escalade. It is a similiar formula used by all Luxo makes including your Benz.

    On the Yukon Denali there is a powertrain upgrade, but there is not on the Terrain or Acadia, which is why I suggested those two.  Acadia Denali has the same engine as a base Traverse.  On Maybach there is no powertrain upgrade from the S550 and S600, but they lengthened the body of the car and raised the roof height and upgraded the inside, and the base car had a V12, not a lot of room to upgrade, plus it is a chauffuer driven car anyway.

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    8 minutes ago, hyperv6 said:

    At one time the only way to get it in a half was in the Denali it also came standard AWD. They kind of lost that formula as it moved on.

    That make sense. They have done so well with the brand that people will buy it just for the "prestige" at this point. Good for them, but the people buying those aren't the most financial savvy because they really don't sound like much of a step from the SLT.

    Heck, I just saw the base engine in the Denali 1500 is still the 5.3. WTF? I mean I guess they're giving the customer more options..but that seems shetty. You have to opt for the "Denali Ultra Package" that is $7,450(currently marked down to $6700) to get the 6.2. Which, obviously gets you a shet ton of other stuff but that seems ridiculous.

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    7 minutes ago, smk4565 said:

    On the Yukon Denali there is a powertrain upgrade, but there is not on the Terrain or Acadia, which is why I suggested those two.  Acadia Denali has the same engine as a base Traverse.  On Maybach there is no powertrain upgrade from the S550 and S600, but they lengthened the body of the car and raised the roof height and upgraded the inside, and the base car had a V12, not a lot of room to upgrade, plus it is a chauffuer driven car anyway.

    Blah Blah Blah Mercedes is God blah blah blah.

    Same powertrain as the peasant S550? Weak-ass-sauce. I know if I'm spending 170k on a car it better not have the same engine as the 96k car. Heck, If I'm spending 170k on my Maybach I sure as hell don't want an S600 to pull up next to me and make me look stupid. S550 Maybach? WTF is that peasant crap all about? Why would Mercedes ever put such a name matched to the weak-ass, peasant, poor people version of the S Class? Mercedes needs to get their heads out of their asses and build some quality vehicles that make sense.

    "Hi, I own a 449hp Maybach!"

    "Your sh!t is weak. My 523hp/612tq will make you look stoooopid."

    18 minutes ago, smk4565 said:

     On Maybach

    That's a $70,000 premium to not even get a different engine or power bump. Pathetic.

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    1 hour ago, hyperv6 said:

    Not in most versions of the Denali line.

    There are a couple perks here and there but not many. The magnetic suspension on the truck is one but the Canyon, Terrain, Acadia and others they will sock you for nearly $3.5K more and give you nothing but cheap plastic trim.

    In the case of the Canyon I would rather keep the money and get the SLT2 for much less and skip the heated steering wheel.

    I wish they would use a solid formula of a few extra HP in all version and standard AWD in all models. really give you something for the money.

    But then again if people keep buying them like this who can blame them for not adding the extra real hardware. It is less work and more profits.

    I am referring to the Yukon only since he made the Tahoe reference. Guess I need to be more specific even though the reply was directly to SMK who made the Tahoe reference in the first place. 

     

    Why the pick ups are different is beyond silly to me. 

     

     

    IMG_4538.PNG

    IMG_4537.PNG

    Edited by surreal1272

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    38 minutes ago, ccap41 said:

    That make sense. They have done so well with the brand that people will buy it just for the "prestige" at this point. Good for them, but the people buying those aren't the most financial savvy because they really don't sound like much of a step from the SLT.

    Heck, I just saw the base engine in the Denali 1500 is still the 5.3. WTF? I mean I guess they're giving the customer more options..but that seems shetty. You have to opt for the "Denali Ultra Package" that is $7,450(currently marked down to $6700) to get the 6.2. Which, obviously gets you a shet ton of other stuff but that seems ridiculous.

    People who by for prestige are not financially  savey when it comes to vehicles as they are buying image savey is no part of image.

    Now if the have no care for image they just buy average Chevy.

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    1 hour ago, ccap41 said:

    Blah Blah Blah Mercedes is God blah blah blah.

    Same powertrain as the peasant S550? Weak-ass-sauce. I know if I'm spending 170k on a car it better not have the same engine as the 96k car. Heck, If I'm spending 170k on my Maybach I sure as hell don't want an S600 to pull up next to me and make me look stupid. S550 Maybach? WTF is that peasant crap all about? Why would Mercedes ever put such a name matched to the weak-ass, peasant, poor people version of the S Class? Mercedes needs to get their heads out of their asses and build some quality vehicles that make sense.

    "Hi, I own a 449hp Maybach!"

    "Your sh!t is weak. My 523hp/612tq will make you look stoooopid."

    That's a $70,000 premium to not even get a different engine or power bump. Pathetic.

    And that is why Maybach has been a huge fail in this country. Everyone with that kind of cash saw for what they were, a stretched out S Class. 

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    26 minutes ago, surreal1272 said:

    I am referring to the Yukon only since he made the Tahoe reference. Guess I need to be more specific even though the reply was directly to SMK who made the Tahoe reference in the first place. 

     

    Why the pick ups are different is beyond silly to me. 

     

     

    IMG_4538.PNG

    IMG_4537.PNG

    I took no issue with what you said. We are good!

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    28 minutes ago, hyperv6 said:

    I took no issue with what you said. We are good!

    No worries. I realized that I didn't clarify my remark which is why I followed up with a screenshot of the Denali in question. It's all good. 

     

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    I swear to God I had the first post in this thread.. it even shows up in my profile.. but for some reason it's not present.. anyway..

    I tried to get this across to Smk awhile ago. Gotta wonder why the new Avista brand is coming.... Wait... No U don't. Seriously. Imagine Cadillac getting highest ATPs in its segment... GMC/Denali.. Buick/Avista.. these are the things that will prove to be the reasons why GM is now becoming a Profit maker on the cusp of VW/AUDI/Porsche. GM.. could make even more of of GMC.. that's the other brand that idiots back in 2009 said should go along with Buick.. They could offer, along with Denali.. a "Hummer" Trim. But have 3 specific models that look mysteriously like the H3, H3T and Hx concept.. all based off the Canyon/Colorado

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    3 hours ago, ccap41 said:

    Blah Blah Blah Mercedes is God blah blah blah.

    Same powertrain as the peasant S550? Weak-ass-sauce. I know if I'm spending 170k on a car it better not have the same engine as the 96k car. Heck, If I'm spending 170k on my Maybach I sure as hell don't want an S600 to pull up next to me and make me look stupid. S550 Maybach? WTF is that peasant crap all about? Why would Mercedes ever put such a name matched to the weak-ass, peasant, poor people version of the S Class? Mercedes needs to get their heads out of their asses and build some quality vehicles that make sense.

    "Hi, I own a 449hp Maybach!"

    "Your sh!t is weak. My 523hp/612tq will make you look stoooopid."

    That's a $70,000 premium to not even get a different engine or power bump. Pathetic.

    If it makes you feel better, the 2018 S550 will have 476 hp.  

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    1 hour ago, Cmicasa the Great said:

    I swear to God I had the first post in this thread.. it even shows up in my profile.. but for some reason it's not present.. anyway..

    I tried to get this across to Smk awhile ago. Gotta wonder why the new Avista brand is coming.... Wait... No U don't. Seriously. Imagine Cadillac getting highest ATPs in its segment... GMC/Denali.. Buick/Avista.. these are the things that will prove to be the reasons why GM is now becoming a Profit maker on the cusp of VW/AUDI/Porsche. GM.. could make even more of of GMC.. that's the other brand that idiots back in 2009 said should go along with Buick.. They could offer, along with Denali.. a "Hummer" Trim. But have 3 specific models that look mysteriously like the H3, H3T and Hx concept.. all based off the Canyon/Colorado

    A Buick luxury trim doesn't make too much sense because that is what Cadillac is. Just like Chevy doesn't have a luxury Traverse because Buick builds one.   If Buick can charge $10,000 extra for an Avista trim Lacrosse more power to them.  They should do and take the money and run.  But look at the Reserve and Balck label Lincolns, they aren't really doing anything.

    i think Cadillac would love to have higher trim cars and be able to option cars the way Porsche does, but I don't think they know how to get there.  $100,000 XT5's is a big reach but you can run a Porsche Macan to that price and their customers are happy to pay it.  Probably why Mercedes is so hell bent on going after Porsche.

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    I think the bigger picture here is that this shows GM has tapped into an Emotional aspect of the customer. 

    We have gone for many years where so many models have been sold on Quality, MPG, Utility and Price. With the Denali it is like the old days where if you want the best then you pay more for the best and the customer gets satisfaction in owning the top models that appear a little better. 

    Now for us here we know all the RPO codes and options and we know that for what you pay more for here you really are getting shafted in many of these models. But most buyers are buying on emotion and satisfaction of how the vehicle reflects on them. This is a seriously hard thing to do as BMW and others have done it for year. No one needs a BMW and few ever drive one in anger but to have one give that self reflection that makes them feel better about their vehicle and how it reflects on them. 

    This is what the main line of Cadillac needs to accomplish again. It used to be just owning a Cadillac meant you were a real mover and shaker in town. It meant success and you had it made.

    As time went buy they went more mass market and that led to you just had a good paying job and were not the company owner. The owners then started to look for products that their employees could not own to have what not everyone could have, 

    I would love to see GM get Cadillac not just in V form gain this edge again. In their case it is not just a special version of a model but a special model and not something everyone can own or have. Make it so it defines the owner emotionally and image wise to where it is a statement of being conceptional. You can still let the CUV models carry the volume as they appear to be accepted in larger numbers but the cars need to be special. 

    But really study the Denali and the average buyer of it and you will see the key to profits with any model. 

    This is like selling coffee. You can sell a cup like MC Donald's for less than a buck and sell a lot of it. Or you can take that same coffee add a little spice and whip cream and then foam it up and get $5 bucks for it. The Coffee is not really any better and your additions are just more dressing of the same old product. but yet people like it and are willing to pay much more with so little investment. 

    The Denali is just pure genius.

    Now  with that said it will work at Buick too. Now as for Chevy it is limited as Chevy just is not seen as being exlusive or special. Same with Toyota or even Honda. They are value volume brands and while you can offer a better model like a LTZ  anything higher is going to be limited. Ford has found that out with the Platinum line as sales have not been great and it was intended to replace Lincoln.

    I expect Cadillac to start to offer some really special things once the new product arrive. I expect more custom offerings too. I see JDN returning more to the Cadillac of old like in the 30's where they tailored their product to those willing to pay more.  

    The SUV and CUV will see some but they will remain more main stream as they can get away with it like the volume. 

    It is like Porsche. A 911 owner does not want to see one in every parking lot. But a Cayenne owner could care less if there are ten of these in the country clubs parking lot. If anything he will feel like he belongs to the group.

    I hope this makes sense.

    While I know we all like to see special engineering and even things like coupes and wagons added to the mix. They just do not return the profits like a little chrome and trim does. Even engine changes account for high EPA testing that is hard to make back and even in some cases fuel system changes that need crash tested.  

    52 minutes ago, smk4565 said:

    A Buick luxury trim doesn't make too much sense because that is what Cadillac is. Just like Chevy doesn't have a luxury Traverse because Buick builds one.   If Buick can charge $10,000 extra for an Avista trim Lacrosse more power to them.  They should do and take the money and run.  But look at the Reserve and Balck label Lincolns, they aren't really doing anything.

    i think Cadillac would love to have higher trim cars and be able to option cars the way Porsche does, but I don't think they know how to get there.  $100,000 XT5's is a big reach but you can run a Porsche Macan to that price and their customers are happy to pay it.  Probably why Mercedes is so hell bent on going after Porsche.

    The Denali does not make sense either but it makes dollars. 

    Do not try to rationalize emotions and image building of a customer. You never will make sense of it but you can make money from it. 

    Avista will make a lot of money as it will be just like the Denali. For about $500 per unit additional content  they can sell it for $4,000 more. 

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    3 hours ago, smk4565 said:

    A Buick luxury trim doesn't make too much sense because that is what Cadillac is. Just like Chevy doesn't have a luxury Traverse because Buick builds one.   If Buick can charge $10,000 extra for an Avista trim Lacrosse more power to them.  They should do and take the money and run.  But look at the Reserve and Balck label Lincolns, they aren't really doing anything.

    i think Cadillac would love to have higher trim cars and be able to option cars the way Porsche does, but I don't think they know how to get there.  $100,000 XT5's is a big reach but you can run a Porsche Macan to that price and their customers are happy to pay it.  Probably why Mercedes is so hell bent on going after Porsche.

    Cadillac is a different story.. but the Chevy Brand does have higher trims already. The HIGH COUNTRY is an example on one particular vehicle. Buick having Avista has NOTHING to do with Cadillac. These brands should operate on their own.. and like the article states.. GMC could be a company on its own in the Fortune 150.. Why can't Buick selling over 1.1 Million units up to Sept 2016???Meaning it probably hit 1.3, 1.4 full year numbers, so why not capitalize on it?

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    Perhaps in China, the Avista line will have more play and drive some profit there.  But GM has Cadillac for a reason.  If you want more than a Buick, GMC, Corvette or whatever, you go to Cadillac.  GM in the past 10 years has been trying to push Corvette, Buick and GMC up market, Cadillac hasn't made a move.  The thought of a $100,000 XT5 would be laughable, it is more than an Escalade, but there are competitors selling small and mid-size crossovers at that price point.   If Cadillac doesn't get up there, and sits in the $35-70k range, I don't really see the point of pushing Buick and GMC up market on top of them.

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    In 2007 the Escalade started at $57K. Now it's $74K - $110K.

    In 2006 the CTS started at $30K. Now it's $46K-$110K.

    Cadillac has made major moves while you were sleeping.
     

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    9 hours ago, balthazar said:

    In 2007 the Escalade started at $57K. Now it's $74K - $110K.

    In 2006 the CTS started at $30K. Now it's $46K-$110K.

    Cadillac has made major moves while you were sleeping.
     

    Escalade has moved up, but CTS moved up only because it replaced the STS.  Plus you have inflation.

    In 2006 an SRX was $36,270, STS $41,020, DTS $41,195  Adjusted for inflation the SRX is $44,495, STS would be $50,322, and DTS would be $50,537.  The XT5, CTS, and XTS are cheaper now compared to the SRX, STS, and DTS then.  They are still basically selling cars in the same market space as they were 10 years ago.  

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    1 hour ago, smk4565 said:

    Escalade has moved up, but CTS moved up only because it replaced the STS.  Plus you have inflation.

    In 2006 an SRX was $36,270, STS $41,020, DTS $41,195  Adjusted for inflation the SRX is $44,495, STS would be $50,322, and DTS would be $50,537.  The XT5, CTS, and XTS are cheaper now compared to the SRX, STS, and DTS then.  They are still basically selling cars in the same market space as they were 10 years ago.  

    So what U are sayin is that Cadillac finally smartened up and start advertising MSRPs that were lower but when the buyer got to the dealer still ended up being sold on products that much higher in price.. Cause I can tell U that I have yet to see anyone I kno buy a base Cadillac in the last 5 years. Furthermore ATPs on each model along with overall brand suggest something totally different than what U are saying. With exception to the ATS.. every Cadillac being sold right now is selling a rather nice hike on the MSRP due to proper optioning by consumers.

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