Report: GMC May Challenge Jeep Wrangler with New SUV

Jan 29, 2015 02:30 PM EST | Jordan Ecarma

General Motors is reportedly in talks with dealers about a possible GMC sport utility vehicle offering that would be a competitor to the popular Jeep Wrangler.

As cheap fuel prices and a strengthened economy increase SUV demand, the American auto market could be welcoming to a Wrangler competitor. GM executives have told dealers that the potential GMC offering would echo a Hummer in styling cues and off-roading capability, the Wall Street Journal reported.

The new model hasn't gotten the official go-ahead yet and is still in the "discussion phase," sources familiar with the matter told the Journal.

"The idea is being kicked around real hard," a person briefed on the plan said.

Considered the strongest of GM's brands, GMC has been boosted by low gas prices, with 2014 sales rising 11 percent to 501,853 year over year.

GM offers several SUVs but can't yet rival the heavy-duty Jeep Wrangler, which jumped 13 percent for 175,000 in sales last year. In addition to successful sales, the Wrangler also boasts a resale value that is among the highest on the market.

While GM spokesman Brian Goebel declined to comment on the possibility of a new SUV, he told the Journal that GMC leader Duncan Aldred has openly said the brand needs to expand its portfolio to continue furthering its growth.

Rumors that GM was considering a new off-roading model began swirling last March, according to GM Authority.

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