- GM executive admits consumers are feeling the effects of higher gas prices.
- Buyers are shifting away from trucks and SUVs.
- A rise in gas prices typically takes longer to impact consumers.
Speaking during briefing seminars at the Center for Automotive Research in Ypsilanti, Michigan, General Motors North America President Duncan Aldred said that high gasoline prices are driving consumers away from expensive pickup trucks and SUVs. The seminars were originally reported on by Automotive News. Aldred said:
‘I’m not going to sit here and say it’s permanent yet. But we are seeing somewhat of a shrinking of pickup trucks, full-size utilities, and some of the heavier [vehicles] and an increase in the more affordable segments of the industry.’
2027 Chevrolet Silverado 1500 ZR2
Photo by: Chevrolet
Aldred went on to explain that the current war in Iran and the subsequent surge in gas prices have caused a ripple effect different from previous spikes. Consumers tend to take longer before considering trading out of an efficient vehicle, but GM is noticing something unique about this current situation.
The sudden rise in gas prices could be exacerbating other affordability struggles, including average new vehicle transaction prices, which ended 2025 at over $50,000 and have risen since then.
GM does have six models that start under $30,000—Chevrolet Trax, Chevrolet Trailblazer, Buick Envista, Buick Encore GX, Chevrolet Equinox, and Chevrolet Bolt—but the company also just revealed a new Silverado 1500 with larger V8 engines.
“There’s definitely more awareness of affordability. We’ve seen what’s happened with inflation, and we’ve seen what’s happening at the pumps. It’s something we do have to watch really, really closely,” Aldred admitted.
16
Source: Chevrolet
Motor1’s Take: Hearing a GM executive admit that gas prices are already starting to impact sales of the company with the highest combined truck sales should be cause for alarm across the industry. It could signal that brands may be smart to pivot away from large vehicles and focus on smaller, more affordable vehicles at the other end of the market. GM has seen success with new models like the Trax and Envista, so perhaps we can see more development dollars poured into similar projects, not just more trucks and SUVs.
Read the full article here
