General Motors Company (NYSE:GM) and its Chevrolet brand displayed four 2015 models of its full-size sport-utility vehicles (SUV) on Thursday. The U.S. automaker remained confident that it could still make profits from selling these large vehicles.
According to General Motors Company (NYSE:GM), its new SUVs, the Tahoe, Suburban Yukon, and Yukon XL, offer the best V8-fuel economy because the vehicles are equipped with advanced EcoTec3 engines.
General Motors designed the two SUVs for better performance
The automaker presented its Chevrolet Tahoe and Suburban in New York. General Motors Company (NYSE:GM) designed the two SUVs for better performance and offers more safety features and a wide range of new technologies. The company showcased the Yukon, Yulon XL, and flagship Yukon Denali models in Los Angeles. The automaker said the new SUV models have fold-flat rear seats, and a quieter interior. The vehicles were built with better capacity and more power.
General Motors Company (NYSE:GM) will begin delivering its new models to its showrooms early next year. The company remodeled the Tahoe, Suburban, and the Yukon SUVs after nearly seven years. The automaker did not reveal pricing for the vehicles, but people in the auto industry projected that the SUVs will cost around $45,000 and $50,000.
Maria Rohrer, marketing and strategy director for Chevrolet, said the company is back to core buyers with two or three children. She said, “These are people who have two or three children, and they need something either to cart around their family, their kids and their friend’s kids, soccer equipment, or they need to tow Jet Skis or a boat. These are people who want a little more style than what a minivan has to offer.”
The automaker’s margins from SUVs are compelling
Daniel Ammann, chief financial officer of General Motors Company (NYSE:GM), emphasized that the automaker’s margins from SUVs are compelling.
“You don’t have to be a CFO to know how compelling this is from a bottom-line perspective.” GM’s SUV business, if it were a stand-alone company, would belong in the Fortune 400. He declined to say how much the company earns from the vehicles, but noted, “they are quite profitable,” said Ammann.
Currently, General Motors Company (NYSE:GM) accounts for 75% of large-SUV sales.
“We are meeting customer demand.We obviously have a huge position in the market, and we’re delivering what they want,” added Amman.