The mid to large-crossover segment is becoming increasingly populated – even within General Motors’ family of brands – but GM is confident that its newest Chevrolet Traverse can push its way to the front of the class. Although the Traverse has only been on the market for a couple of weeks, Chevrolet is aiming its newest crossover squarely at the segment leaders – the Toyota Highlander and Honda Pilot .
One major advantage Chevrolet has over its Japanese competition is a larger dealer network. Although GM is currently trying to reduce the number of Chevrolet showrooms in America, the Bow Tie brand still has enough retail stores nationwide to support the kind of numbers GM has planned for the value-minded Traverse. Toyota sold 127,878 Highlanders in 2007, while Honda moved 117,146 Pilots – both numbers GM hopes to trump in the Traverse’s first full year on the market.
In addition to a larger dealer network, GM is also banking on cash incentives to help move the Traverse. An important part of that strategy will include offering cash rebates to non-GM owners. “We need to conquest,” Chevrolet head Ed Peper told Automotive News. “We need fresh people.”
GM faced a similar situation in the mid-size sedan segment. Before the launch of the all-new Malibu, GM was basically giving away sales to Toyota and Honda . However, GM went back to the drawing board and created an all-new entrant that delivered style and quality. GM is looking to build on that blueprint with the Traverse.
But some GM dealers are fearful that a fourth Lambda-based crossover will only cannibalize other GM sales. To differentiate the Traverse from its up-level siblings, many dealers are only ordering base model Traverse. “We have to price-point this vehicle so we can still sell our Envoys and Acadias,” Brian Boyd, general manager of Charles Boyd Chevrolet-Pontiac- Cadillac - Buick - GMC , told Automotive News. If Boyd’s strategy becomes a trend, it could deter customers from choosing a lesser-equipped Traverse over a Highlander or Pilot.
But with the Traverse only having a few selling days under its belt, it’s way too early to predict if it has what it takes to take over as the market leader in a very competitive segment.
