- GM executives acknowledge consumers are feeling the impact of higher gas prices.
- Buyers are moving away from trucks and SUVs.
- Gas price increases typically take longer to impact consumers.
Speaking during a briefing seminar at the Center for Automotive Research in Ypsilanti, Michigan, Duncan Allred, president of General Motors North America, said higher gasoline prices are driving consumers away from expensive pickup trucks and SUVs. The seminars were originally reported by? automotive news. Eldred said:
‘I’m not going to sit here and say this is still permanent. “But we’re seeing somewhat of a decline in pickup trucks, full-size utilities and some heavy-duty (vehicles) and growth in more affordable areas of the industry.”
2027 Chevrolet Silverado 1500 ZR2
Photo by:Chevrolet
Eldred said the current war in Iran and the subsequent increase in gas prices has created a different effect than previous increases. It’s taken more time for consumers to consider trading up from an efficient vehicle, but GM is seeing something unique about this current situation.
A sudden increase in gas prices could exacerbate other affordability struggles, including average new vehicle transaction prices, which peaked at more than $50,000 in 2025 and have risen since then.
GM has six models that start under $30,000 – the Chevrolet Trax, Chevrolet Trailblazer, Buick Envista, Buick Encore GX, Chevrolet Equinox and the Chevrolet Bolt – but the company has also introduced a new Silverado 1500 with a larger V8 engine.
“There’s definitely a greater 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 have to look at really very closely,” Alldred acknowledged.
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Source:Chevrolet
Motor1’s Opinion: Hearing a GM executive admit that gas prices are already starting to impact the company’s sales, with truck sales at the highest combined level ever, should be cause for concern throughout the industry. This could indicate that brands might be smart to stay away from larger 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 could see not only more trucks and SUVs, but also more development dollars put into similar projects.
