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General Motors Company (GM), Ford Motor Company (F): Why the 2015 Chevy Suburban Is a Big Deal

That’s a stable, sizable market for a group of vehicles that are fairly pricey. Edmunds estimates that the average transaction price for a Tahoe, Suburban, or Yukon is over $52,000. It’s likely that $4,000 or more of that is pure profit for General Motors Company (NYSE:GM) — making these SUVs among GM’s more profitable vehicles.

The upshot: These new SUVs are important
These new SUVs will replace models that represent a sizable part of General Motors Company (NYSE:GM)’s North American business, at least from a profit standpoint. That makes them pretty important – and early signs are that GM took a solid if somewhat conservative approach with the redesign, making a whole bunch of incremental improvements that should add up to a big boost to the overall ownership experience.

That’s exactly what GM did with the new Chevy Silverado and General Motors Company (NYSE:GM) Sierra pickups, and it should be just what GM needs to hold on to its commanding lead in this still-important market segment, and it might even gain ground for awhile. While Ford Motor Company (NYSE:F) is sure to contest GM’s entries with a strong new Expedition (expect big emphasis on fuel economy gains from the Blue Oval), GM appears to have done more than enough to hold its ground with its SUV’s current fans.

The article Why the 2015 Chevy Suburban Is a Big Deal originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of Ford and General Motors. You can connect with him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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