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GM Introduces Affordable Crossovers to Address Affordability Concerns
Detroit—General Motors (GM) is launching two new crossovers from Chevrolet and Buick as a response to the growing affordability issues caused by the discontinuation of cheaper sedans. In recent years, the average price paid for a new vehicle has significantly increased, pushing out around 10% of traditional car buyers from the market. While foreign automakers such as Toyota and Hyundai continue to offer sedans, the prices have gone up due to supply chain problems and limited availability.
New Competitive Pricing
GM's 2024 Buick Envista and redesigned 2024 Chevrolet Trax crossovers are priced at $22,400 and $20,400, respectively. These competitive prices position them as alternatives to sedans from other automakers. The Trax and Envista have a sedan-like silhouette, but offer a roomier interior like GM's current smaller crossovers.
Expanding Market Reach
Buick and Chevrolet executives expect the new crossovers to become top sellers for their respective brands as production ramps up and they are imported from South Korean factories. The Envista is predicted to attract "segment orphans" who are seeking affordable options amid the scarcity of sedans. Meanwhile, Chevrolet believes the Trax will be its third best-selling vehicle, behind the Silverado full-size pickup and the Equinox compact crossover.
Standard Features and Engine Specifications
The Envista and Trax come with standard safety and convenience features that go beyond what GM typically offers on entry-level vehicles. Both models are powered by a 1.2-liter turbocharged inline three-cylinder engine, producing 137 horsepower and 162 pound-feet of torque.
The Trax and Envista, which share the same platform, offer expressive options for entry-level buyers. They aim to revive GM's sales in the lower end of the market and fill the gap left by discontinued entry-level models. Compared to the Chevy Trailblazer and Buick Encore GX, the Trax and Envista have a more spacious and elongated design. However, the Trailblazer and Encore GX lack all-wheel drive capabilities.
Attracting New Buyers and Boosting Sales
Chevrolet and Buick believe that the introduction of these new vehicles will attract a significant number of new buyers to their brands, ultimately driving sales and increasing market share for GM. GM's U.S. sales have already seen an 18% increase in the first half of this year, thanks to the stabilization of the auto industry's supply chain issues.
Conclusion: The Impact on New Businesses
The introduction of affordable crossovers by General Motors (GM) has the potential to impact new businesses in the automotive industry. As the market sees a shift away from sedans due to affordability concerns, GM's move to address this issue with the Buick Envista and Chevrolet Trax opens up opportunities for new businesses targeting the entry-level buyer segment.
With competitive pricing starting at $20,400 and $22,400 respectively, the Trax and Envista present appealing alternatives to sedans from other automakers. These crossovers possess sedan-like silhouettes and spacious interiors, giving them an advantage over their competitors in the entry-level market.
By targeting "segment orphans" and traditional sedan buyers, GM's new crossovers can attract a significant number of customers seeking affordable options. This presents an opportunity for new businesses to offer complementary products and services tailored to this specific market segment.
Furthermore, the standard safety and convenience features, along with the powerful engine specifications, make the Trax and Envista highly attractive to entry-level buyers. This opens up avenues for new businesses to provide additional customization options, accessories, and aftermarket services to enhance the overall ownership experience.
Chevrolet and Buick's belief that these new vehicles will drive sales and increase market share for GM speaks to the potential success of targeting the affordability concerns in the automotive industry. As GM's sales continue to grow and the demand for entry-level crossovers increases, new businesses can seize the opportunity to align their offerings with the needs and preferences of this evolving customer base.
In conclusion, GM's introduction of affordable crossovers not only addresses affordability concerns but also opens up possibilities for new businesses to cater to the changing market landscape. By understanding the needs of entry-level buyers and leveraging the success of these crossovers, new businesses can position themselves as valuable partners in the automotive industry's transition towards more affordable and spacious alternatives.Article First Published at: https://www.cnbc.com/2023/07/11/gm-chevy-trax-buick-envista-crossovers-priced-for-affordability.html