The Denali trim level has become a significant source of revenue for GMC, reigning at the pinnacle of its vehicle lineup. Over the past twenty years, the Denali name has become so synonymous with luxury that many GMC owners refer to their vehicles simply as “a Denali” instead of mentioning the specific model.
Recognizing the success of the Denali, executives at GMC sought to expand this winning formula by creating an off-road subbrand, resulting in the launch of the AT4. Introduced with the 2019 Sierra, the AT4 coincided perfectly with the rising popularity of off-roading and overlanding. The positive reception of the AT4 has surprised even the brand that developed it.
According to GMC Senior Manager Stu Pierce, “We were taken aback by the AT4’s success in recent years. The Denali brand carries a significant appeal; it’s nestled perfectly into that desirable market segment. Initially, AT4 models accounted for about ten percent of the Sierra lineup, but they are now surpassing Denali for light-duty sales, while heavy-duty truck buyers still prefer Denali.”
GMC has discovered that approximately sixty percent of AT4 customers are new to the brand, and there is minimal overlap in purchasing between AT4 and Denali models. Pierce notes that these buyers tend to be younger and more adventurous. Since its 2020 launch, the AT4 has become the top-selling trim for the Canyon, GMC’s popular midsize pickup, and it’s also available for the Yukon, Acadia, and Terrain models.
“Every brand has an off-road truck variant,” states Pierce. “We aim to offer a premium experience combined with off-road capability.”
Pierce detailed several key differences between the Denali and AT4 trims:
- The Sierra AT4 has a two-inch higher ride height and an off-road suspension, while the Denali features an adaptive ride suspension.
- All AT4 models boast improved approach and departure angles.
- In the Yukon, both Denali and AT4 trims offer four-corner air suspension; with 4L mode, the AT4 can be raised by two inches.
- The Sierra Denali comes with 22-inch wheels and all-season tires, whereas the AT4 is equipped with 18-inch wheels and mud-terrain tires.
- The Yukon AT4 features 20-inch wheels with all-terrain tires compared to the Denali’s 22-inch wheels with all-season tires.
- Both Denali and AT4 trims include the Transparent Trailer feature.
Currently, Denali models typically come standard with a 6.2-liter engine or the new Duramax Diesel. In 2021, AT4 trims were powered by a standard 5.3-liter engine, with a diesel option for the Sierra. For 2022, GMC added the 6.2-liter engine to AT4 trims—a feature previously exclusive to Denali models.
Currently, Denali models account for more than half of Yukon sales, ranging between 60 to 65 percent, according to Pierce.
“I believe that together, the Denali and AT4 trims will soon account for over three-quarters of our sales,” he adds. “With a stable inventory, we expect the AT4’s popularity to increase further. Customers appreciate high-end features.”
As GMC adapts to changing market trends, advocating for the AT4 seems to be a wise move. Once the semiconductor shortage is resolved, it will be interesting to observe shifts in sales, particularly with an all-electric truck in development as GMC aims to maintain its competitive edge.
Got a tip? Reach out to the writer at: kristin.shaw@thedrive.com
.
