How GM is marketing new fuel-guzzling vehicles amid price spikes

Resilience is the word of the moment in the auto industry.

That, and “affordability” (or lack thereof)—two concepts that might seem at odds were it not for the K-shaped economy and the simple fact that drivers still need to fuel up and, sometimes, buy a new vehicle.

On that note, we’ll throw in one more: “record-setting,” which is what rising fuel prices have been as the US war with Iran drags on.

This is the somewhat confusing market into which US automakers are launching a slate of refreshed full-size pickup trucks, with new gas- and diesel-guzzling engines to match.

GM recently announced the sixth generation of its small-block V8 engine and a new version of its Duramax V8 engine for the automaker’s redesigned 2027 lineup of full-size pickup trucks. As the US auto industry steps back from electrification, analysts see a bright future ahead for internal combustion engines; Mobility Global data suggests new engine programs will bolster automaker profitability “well into the 2030s.”

How does a brand nail the messaging around fuel-hungry products at a time when average gas prices are more than 40% higher than a year ago and the average price of diesel is $6.50 per gallon?

“When you launch a new product, you launch to your strengths,” Stephanie Brinley, associate director of auto intelligence at Mobility Global, told us. “You don’t launch it and say, ‘Oh, I’m so sorry that fuel prices are high; don’t buy me.’”

Need it

GM’s new engines will power its 2027 Chevrolet Silverado 1500 and GMC Sierra 1500. One of the new options for heavy-duty truck customers—more than 60% of whom opt for diesel engines—will be GM’s new Duramax 8.3L turbo-diesel V8 engine.

Ford, too, is giving more truck customers the option for a V8, and Stellantis’s Ram truck brand is bringing back its Hemi V8 engines, CNBC reported.

Steve Majoros, Chevy’s CMO, told Morning Brew at a September event in Flint, Michigan, that brand health and consumer sentiment data reinforces the resiliency of the full-size pickup segment. What drives this stability? For one, Majoros said, some customers simply require a full-size truck because they use it for towing and hauling.

“The functional need is what supersedes and keeps that resilience a little bit strong,” he said.

The full-size pickup segment captured 14.1% of the market in September, according to Cox Automotive data, with sales in the segment up 7.3% YoY.

One way that Chevy markets full-size trucks is by emphasizing that there’s an option for just about anyone.

“We will always, at Chevrolet, talk about fundamentals that are universal, regardless of the powertrain you happen to be choosing,” Majoros said. “When you hear about dependability, capability, durability, ruggedness, etc., those are universal themes that truck people want to understand. So in our broader-based communications, we’ll do those sorts of things. But the beauty of very targeted media now…we can get very specific, with use case, what people are looking for, what signals they send us…We’ll message things back to those folks.”

Speaking directly to the customer you’re targeting is key, according to Brinley.

“If you’re speaking to a Chevrolet [heavy-duty] buyer or a GMC HD buyer, they know what they want,” she said. “They know what they’re getting into…It really doesn’t make that much difference what a Chevrolet Trax buyer thinks of how expensive that is, because they weren’t going to buy it in the first place,” she added, referring to a subcompact, affordable SUV from the brand.

Chevy’s marketing strategy for the new 2027 Silverado 1500 will focus less on big ad buys and more on targeted consumer engagements, according to Majoros.

Asked about the impact of fuel price increases on customers, GM President Mark Reuss said that the company’s strategy is to “focus on the fundamentals of efficiency and value for our customers.”

“We can deliver more that the customers want, at an affordable price, which is what we’re doing with these engines,” he added.

GM execs have repeatedly touted the resiliency of the company’s US consumer base. In July, the automaker raised its profit forecast for the year, a move it attributed in part to a strong pricing environment buoyed by truck and SUV sales, Reuters reported.

Similarly, Ford in July raised its profit guidance, citing “resilient” consumers who continue to buy pickup trucks, per Reuters.

Mobility Global’s Brinley noted, however, that “resilience” doesn’t equate to growth. Also important to note, she said, is that the impact from fuel price spikes depends on how long they last.

“GM was talking to us about engines they’ve been working on for three and a half years—and they intend to build them for another 10 years,” Brinley said. “You can’t necessarily build your entire product portfolio based on six or eight months’ worth of fuel prices.”

Losing ground

Meanwhile, domestic automakers’ focus on their highly profitable full-size pickup and SUV offerings could be giving foreign competitors an edge, according to analysts.

GM, Ford, and Stellantis were on track to finish Q3 with their lowest collective market share on record as they lost ground to brands like Hyundai and Toyota, according to Cox Automotive’s latest forecast.

“We see some of these Asian brands coming forward and really taking the industry by storm,” Erin Keating, executive analyst at Cox, said on a media call. “This is related to the fact that they have the full portfolio lineups. They have the passenger cars, they have the subcompact and compact SUVs…And most importantly, they have the hybrids.”

Hybrids captured 16.3% of the market in Q2, up from 13% a year ago, which analysts attributed in part to rising gas prices.

“I think that’s probably one of the callouts for the domestics, is that they have made some interesting decisions around product,” Keating added. “If you don’t have vehicles to catch them where they are, then there are other manufacturers that likely would step into the gap.”

Overall, Cox’s forecast for the full year was more upbeat than analysts previously expected—enough that they boosted their sales outlook.

Wealthier customers buying high-margin, expensive vehicles are supporting the market, according to Mobility Global analysts, even as affordability challenges dampen demand from less well-off consumers. But if fuel prices continue to rise, even affluent car shoppers could start to rethink their penchant for pricey, fuel-guzzling vehicles.

“OEMs are relying heavily on those high-margin products—full-sized trucks, SUVs, pickups, and so forth, those lifestyle vehicles,” Joe Langley, director of research and analysis at Mobility Global, said, adding that those customers are “at the upper part of that ‘K.’ But even then, you start to go to the psychology of, ‘Do I really want to be putting up $100 a week to fill this thing?’”