The Sierra Is Responsible for a Concerning Percentage of GMC’s Overall Sales
GMC has dealt with a lot of problems these last few years, but a glimmer of hope has surfaced in its Sierra pickup and its share of the brand’s sales figures for the first quarter. However, this blessing could end up being a curse to GMC if the Sierra ultimately disappoints with its sales. How well is the Sierra selling and why could that be bad?
The sales figures for Q1 of 2023 for the GMC Sierra
Overall sales for GMC increased by about 7%, which is 130,608 vehicles sold during the first quarter of 2023. The previous year saw only 121,437 for the same time period. GMC’s Sierra 1500 pickup increased by 26% for a total of 46,382 sales. For its HD models, including 2500 and 3500 versions, 20,816 units were sold, making an increase of 5.1%.
Collectively, all models of the Sierra increased by 18.69%, which means it sold around 67,198 units. In 2022, the 1500 version saw 36,805 units in sales, while the HD models sold approximately 19,812, according to GM Authority.
Its popularity isn’t all that surprising since the truck is being sold by 0.9% more than the MSRP, instead of the 9% to 24% that many dealers are implementing. With production rates still not quite meeting demand, price hikes extending well above what the brands are suggesting is pretty normal.
How the increase in sales for the GMC Sierra could be bad for the brand
The first quarter revealed that the 2023 GMC Sierra is the biggest seller, having sold over 50% of its sales for the brand in the first few months. That’s a great accomplishment for the pickup, but it doesn’t say much for GMC’s performance overall when it comes to the rest of its lineup.
GMC Yukon/Yukon XL, another big seller only saw 19,723 units sold, which is 47,475 less than what the Sierra brought to the brand. It did see an increase of 62.69% from last year’s Q1 sales, though. The Silverado HD, which combines the 2500 and the 3500 models, sold 20,816 units, which is an increase of only 5.1% from last year.
The two vehicles that saw poor sales so far in 2023 are the Terrain and the Canyon. GMC’s Terrain fell 28.17% from last year, while the Canyon decreased by 18.57%. So, if the Sierra making up the biggest chunk of sales were to suddenly drop, GMC could be in trouble with no other big seller to take up the slack as of yet.
What could be causing poor sales for the other vehicles in the lineup?
The GMC Hummer EV recently had an issue with water leaking into its battery compartments causing short circuits. A couple of months ago, the brand finally started to replace the battery packs that had incorrect sealing, which is likely why the vehicle only sold 2 units in the first quarter.
The Canyon saw delays earlier this year due to the EPA not approving the fuel economy estimates and the rollout has just been slow. The same situation occurred with Chevy’s Colorado pickup truck.
With the 2023 GMC Terrain, sales may have dropped in the U.S., but Canada saw an increase of 16% over last year. Mexico saw an even more increase in sales of 569 in the first quarter, which is a 58.50% increase over 2022’s Q1 earnings.
Out of 16 compact crossovers, the Terrain landed in the 12th spot for U.S.A. sales. GM Authority surmises that the supply chain issues continue to plague GMC’s SUV.
All in all, it is only the first quarter of 2023, and sales figures could increase for all of the brand’s models not just the Sierra truck. Hopefully, GMC won’t be left in the cold should its biggest seller suddenly fall in sales as the year goes on.