GMC targets Aussie families with Yukon Denali

GMC is targeting affluent Australian families rather than grey nomads with its massive V8-powered Yukon Denali eight-seat SUV, marking the American brand’s official debut Down Under with imposing looks, lots of equipment and broad capabilities – not to mention a substantial price of $174,990 plus on-road costs.

With room for eight people and their possessions, a benchmark-setting braked towing capacity of 3628kg and a 6.2-litre petrol V8, the Yukon Denali has few direct competitors – but its beefy 2800kg+ kerb weight lands it somewhere between scotch fillet and eye fillet in the cost-per-kilogram stakes.

Extensive customer research helped GM Specialty Vehicles (GMSV) home in on which demographics would be attracted to the GMC Yukon Denali's space and capability combination, with families needing the kind of space and flexibility found in the likes of a Kia Carnival but from a vehicle with far more headroom in terms of towing and terrain potential.

“We’ve done a lot of speaking to customers over the last 18 months, once we knew about the product and at various different shows,” GMSV general manager of marketing and communications Jodie Lennon told GoAuto at last week’s GMC Yukon Denali launch on the New South Wales south coast.

She said that speaking with potential and existing GMSV customers at events such as four-wheel drive and boat shows had “really been able to help us understand who our customer is”.

The research identified three key family profiles that the GMC Yukon Denali targets, including those with four or more children for whom the lack of a front bench-seat option in the related Chevrolet Silverado 1500 – or Ram 1500, Ford F-150 or Toyota Tundra – was a dealbreaker (a Ram 2500 can be optioned with six seats).

“When we speak to people at four-by-four shows, they always say ‘if only the Silverado had an extra seat, then I could take my whole family with us, and the dog’,” said Ms Lennon.

“Normally what’s happened is, you have the first and the second child, and you’re hoping for a third, and then twins come along.”

Another demographic Ms Lennon cited was families where grandparents may form part of a three-generation household or play significant roles in day-to-day family life.

Here, the Yukon’s eight-seat capacity – claimed to provide enough space for adults in all positions – would make it suitable for regular travel with an extended family onboard.

“Really seeing that as being able to use all of those seats, and we always talk about eight full-size adults can sit in that vehicle.”

A third key demographic is those who have rented the vehicle during ski trips or family holidays in North America and are excited about its availability in Australia.

Visiting from the US for the Yukon Denali launch, GMC senior product marketing manager Tim Simmons said resale values of the model in North America made it a popular choice among rental fleets.

“They’re purchasing the Denali because it makes business sense for them,” he said.

“They know the resale value, the total cost of ownership, all that's going to equate to a good business case for them.”

GM Australia and New Zealand managing director Jess Bala told GoAuto she expected some fleet business and sales to limousine companies but said the Yukon Denali’s “primary target and advertising will be for families”.

Notably absent from the GMC’s target demographics are ‘grey nomads’ – retirees travelling Australia with caravans – who might seem the natural fit for a vehicle with substantial towing capacity.

“For me, the grey nomads (demographic) doesn’t really fit so much because of the seating element and the rear screens and a lot of the (family oriented) features that are built into this vehicle as standard, probably isn’t something that would be top of mind for those drivers,” said Ms Lennon.

Ms Bala reiterated the Yukon Denali’s family focus.

“This is a flagship product in the truest sense of the term – an eight-seat family vehicle unrivalled in terms of performance and practicality,” she asserted.

“It is families. It has to be families based on the type of vehicle it is.”

Ms Lennon said the Silverado appealed to those towing a larger caravan for off-grid, remote travel lasting several months whereas the Yukon Denali would suit those who towed a less elaborate setup for shorter trips such as during school holidays, as well as those with a large boat.

Both Ms Bala and Ms Lennon agreed that the marketing approach for the Yukon Denali deliberately differs from the Silverado’s more rugged positioning.

While both vehicles share a platform and V8 powertrain, the Yukon’s messaging emphasises refined luxury alongside capability.

“In our communications, (Silverado) is more like ‘off-road ready’. There’s a lot of loud engine sounds, because we really want to reinforce the V8 capability,” explained Ms Lennon.

“The communications for (Yukon), it’s a little bit more subtle.

“Yes, it has all of those capabilities, but it’s not just all about that loud roaring V8 – there is like a luxury cabin and noise cancellation, and a bit of muted luxury to it versus Silverado.”

Ms Bala said most Silverado customers were trading up from smaller utes, or from a 1500-class to a 2500-class model, rather than off-road SUVs such as the Toyota LandCruiser and Nissan Patrol from which the GMC could conquest some customers.

With a long standard specification list reflecting its family-oriented positioning, the Yukon Denali comes with dual 12.6-inch touchscreens for rear-seat passengers, tri-zone climate control with separate controls for second and third rows, and a cabin designed to provide comfort for occupants of all eight seats.

“From a household income standpoint ... given the price point and the luxury elements of the vehicle, it is only going to really appeal to a certain smaller group of demographics,” said Ms Bala.

“The parents within that family are probably leading some sort of higher-end corporate life.”

A fleet of 10 validation vehicles drove more than 100,000km during Australian testing, including a 14,000km lap of the map, with towing tests receiving particular focus to secure the local SUV market’s highest braked towing capacity figure.

The push into the luxury family SUV market with the Yukon Denali comes as GMSV enjoys strong success with its Silverado line-up, sales of which were up 14.0 per cent year-on-year to the end of March in a segment that is down 9.6 per cent.

Silverado has also become the biggest-selling nameplate among American pick-ups in Australia so far this year, despite the challenging economic climate, the disruption of a federal election and increased competition from last year’s arrival of the Ford F-150 and Toyota Tundra.

The GMC Yukon Denali represents GMSV’s first foray into the luxury family SUV segment, bringing the GMC brand to Australia for the first time. The last GMC sold here was the Acadia, which wore Holden badges from late 2018 to the Australian car brand’s closure on December 31, 2020.

Ms Bala said it was never an option to rebadge the Yukon Denali a Chevrolet to leverage that brand’s existing market awareness, while the similar-sized Chevrolet Tahoe and Suburban were also dismissed in favour of the more premium GMC model.

“There’s no better vehicle to launch the GMC brand in our market, with the Yukon Denali’s combination of potent performance, towing confidence and luxury in every seat delivering a truly unique proposition in the upper-large SUV space,” concluded Ms Bala.

2025 GMC Yukon pricing*:

*Pricing excludes on-road costs.