GM Sees Truck Demand ‘Shrinking’ Due To High Gas Prices, Just In Time For Its New V8

General Motors North America President Duncan Aldred has admitted that high gasoline prices are driving consumers away from expensive pickup trucks and SUVs, with a ‘shrinking’ of demand for these vehicles. This shift in consumer behavior is attributed to the current war in Iran and the subsequent surge in gas prices, which has caused a ripple effect different from previous spikes. As a result, GM is noticing an increase in demand for more affordable segments of the industry. The company has six models that start under $30,000, including the Chevrolet Trax, Chevrolet Trailblazer, Buick Envista, Buick Encore GX, Chevrolet Equinox, and Chevrolet Bolt. However, GM has also just revealed a new Silverado 1500 with larger V8 engines, which may seem counterintuitive given the current market trends. Aldred noted that there is ‘definitely more awareness of affordability’ among consumers, who are not only feeling the effects of higher gas prices but also struggling with average new vehicle transaction prices, which have risen above $50,000. This shift in consumer behavior could signal a need for brands to pivot away from large vehicles and focus on smaller, more affordable vehicles.