GMC ups Canyon's off-road chops in pursuit of midsize pickup share

ASHEVILLE, N.C. — GMC hopes to capture a larger piece of the midsize truck market by upping the off-road capability of its next-generation Canyon.

General Motors' premium truck brand has been steadily increasing Canyon's performance on the trail, first with the AT4 trim a few years ago and now with the top-end AT4X arriving for the 2023 model year.

GMC says the third-generation Canyon is designed to be a formidable rival in a competitive segment led by Toyota, which is preparing to show a redesigned Tacoma this month.

Production has started on three of the 2023 Canyon's four trims, with the AT4X expected this spring. The brand says it aims to grow its U.S. midsize pickup retail market share to about 7 percent over the Canyon's life cycle, from 5 percent today.

"Success is definitely gaining share in the midsize truck segment," Christopher James, Canyon's marketing manager, said during a media drive event here. "It's no surprise Toyota has led the midsize truck segment for a long time. And we have that target on the dartboard, that, 'Hey, look, we're just as capable — and more capable — than the Tacoma.' "

U.S. sales of the Tacoma topped 237,000 last year, more than double its nearest competitor, the Chevrolet Colorado, which GM also redesigned for 2023. GM sold 27,819 Canyons during a supply-constrained 2022, the fewest in the segment but a 15 percent bump from 2021, according to the Automotive News Research & Data Center.

Midsize pickup buyers want to be able to navigate narrow, rugged terrain, GMC says. As such, the Canyon has been redesigned with a 2-inch factory lift standard on the Elevation, AT4 and Denali trims and 3 inches on the AT4X, GMC said. The AT4X has a new off-road mode, more premium appointments and advanced technology.

GMC said it expects half of Canyon buyers to choose the AT4 or AT4X. That compares with about 20 percent among Sierra light-duty buyers.

Pricing starts at $38,395 including shipping for the Elevation trim and climbs to $56,995 for the AT4X.

The Canyon offers one standard engine, a 2.7-liter turbocharged inline-four that generates 310 hp and 430 pound-feet of torque, paired with an eight-speed transmission.

Off-road capability is helped by the "high and wide" stance of the redesigned truck, said Dan Dokter, the Canyon's program engineering manager.

"Our mission when designing the Canyon was, how can we engineer the most advanced, off-road-capable, midsize truck possible?" Dokter said.

"Like every engine that we make, we beat the crap out of it, so that way it provides our customers consistent off-road performance, trail after trail," he told reporters. "This engine is a torque monster and is one of the key enablers for Canyon's off-road capability."

GMC has an opportunity to capitalize on the premium off-road market, particularly at the midsize level, said Paul Waatti, manager of industry analysis for AutoPacific Inc.

With new midsize trucks from GM, Toyota and Ford, which is preparing to show a redesigned Ranger, "it's going to be really interesting to see what happens," Waatti said. "But I don't think Toyota's ready to give up the crown just yet."

The midsize segment has gotten more competitive, but GM has done well with both the Canyon and Colorado, said Stephen Gilchrist, dealer operator of Gilchrist Automotive Group in Texas.

"The newest iteration is just building on that success and building on that reputation of making a good, well-contented midsize truck with a lot of utility, but it's still affordable," Gilchrist said.

GMC launched a marketing campaign calling Canyon "the official vehicle of nowhere," James said. It featured videos of off-road influencers driving the Canyon. The concept stemmed from people's desire to get outside after staying at home early in the pandemic.

Tommy Morgan, who sells GMC vehicles in Carlsbad, Calif., as an operating partner with Premier Automotive Group, has been allocated eight Canyons so far, with four AT4X versions that are presold, Morgan said. Four Canyon Denalis will head to the front line for sale.

Of Canyon customers, "the majority of them are looking for the AT4X," Morgan said. "They're hot, people love them, they look good, they perform."