Trying
to compete with the best-selling Ford Ranger has been the
eternal struggle for the Chevrolet S-10 pickup. Determining buyer demographics,
powerplant choices, model lineup, regional sales distribution, and all
the other nuances of marketing a successful product are the responsibilities
of not only the brand team, but other GM managers as well. We had a chance
recently to quiz some of the GM internals about the S-10, including Dora
Nowicki, S-10 Brand Manager, about the company's plans for the compact
pickup.
The
target audience for the S-10 remains largely unchanged: young, single
males looking for a vehicle with some utility. According to Nowicki,
the majority of purchasers use their compact trucks mostly for commuting,
with a need for occasional utility and recreational purposes. Chevrolet
admits that the S-10 is a life-stage vehicle, meaning those who purchase
it usually buy something more in line with later needs, such as getting
married and starting a family. The
good
news for General Motors is that approximately 70 percent of S-10 owners
move into another GM product. When asked how the four-door model will
affect these demographics, Nowicki noted that the new vehicle will
bring
in
owners with higher incomes, more college education, and a 20 to 25
percent increase in female purchasers. According to Nowicki, the S-10
appeals to females more than any other truck in its segment due to
a lower step-in height, outstanding safety record, a tight turning
radius, car-like ride, and the fact that the package comes fairly
complete with few options. In addition, the added benefit of putting
kids and car seats in the back also will help increase sales numbers
in this ever-growing segment.
Although
second to the Ranger, the S-10 has sold well, with 240,000 units in 1999
and over 200,000 unit sales or better since1996. The Crew Cab is expected
to sell between 20,000 and 30,000 units during its first model year; optimistic,
but with the projected increase in female buyers, Chevy should easily
reach this target.
But
who gets what and when largely is determined by two things: geographic
areas where the respective brands are targeted, and dealerships that have
sold a high number of related brand products. To a lesser extent, but
important nonetheless, is that the customer satisfaction index is tied
into vehicle distribution. According to General Motors, the general philosophy
is to target fertile markets and distribute in large numbers to dealers
who have the largest customer base; this gets the most product to the
most potential customers fastest. But at some point shortly after the
launch, the distribution becomes national and every single dealer is included.
Those dealers in areas that cater to a youth-oriented target audience
will be among the first to receive the new Crew Cabs, as well as the next-generation
S-10 set for launch in early 2003.
Speaking
of the next-gen trucks, the official words is there has been no confirmation
that the new inline engines will be powering future S-10s, but everything
is under consideration.
If
the engines do get the go ahead, we will see either four- or five-cylinder
versions that now are being used in the 2002 GMC Envoy and Oldsmobile
Bravada SUVs. But what about rumors of a V-8 in the S-10? According
to Nowicki, you probably will never see one. "It's not that we can't
or don't want to, but there are reasons we choose not to. She continues,
"From an affordability perspective, compact pickups are the entry
into the truck world, and customer resistance and the payment points
are just a few of the reasons it couldn't support a larger engine."
Nowicki also understands that the S-10 plays an important role in
GM's Corporate Average Fuel Economy (CAFE) requirements. "If you look
at a balancing act for CAFE, there has to be a continuum of negative
to positive, a means of balancing those vehicles that have to have
a V-8 in order to do the work they were designed to do. We [manufacturers]
all meet out CAFE requirements in similar ways, and most of us, the
majors, depend on the fuel economy of compact pickups to offset the
huge volume and fuel economy of larger pickups. When it comes to fuel
efficiency, according to GM, its truck lineup beats both Ford and
Chrysler when it comes to fuel economy leadership. And this is expected
to remain the same even with the alliance with other manufacturers.
Also
in keeping with fuel economy, when we asked about using composite boxes
on the S-10, we were informed that the steel frame box on the compact
pickup still performs a key role in ensuring strength and toughness that
pickup customers demand. Engineers and designers are looking into more
usage of aluminum components to lighten the vehicle.
Rumors
have circulated that the next-generation pickups that will be engineered
by GM partner Isuzu have been subjected to delays, but these delays, according
to GM truck operations, are false, and the S-10 replacement is on schedule.
This partnership with Isuzu is greatly anticipated, and will help provide
a global partnership that will bring engineering as well as assembly expertise
to the fold, according to Nowicki.
With
the new S-10 Crew Cab coming up and the redesign not far behind, Chevy's
compact pickup has a good chance of catching up, and possibly even passing
the Ford Ranger for best-selling compact truck. GM has set many targets
for its divisions, and expects them all to be successful. The S-10 should
be one of the shining points of light for GM's future.