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General Motors Co.'s GMC brand sells just six models compared to its larger Chevrolet brand, with 19 models, but the business is contributing strong profit by sticking to a formula of selling just pricey trucks and sport-utility vehicles.

GMC's U.S. sales rose 11.3% last year, propelled by cheap gas, low interest rates, and robust demand for pickups and SUVs. The business is almost exclusively U.S. and Canadian except for some sales in the Middle East, avoiding the declines in some international markets like South America and Russia.

The nation's largest auto maker doesn't break out margins on the brand, but analysts say it is highly profitable because it leverages the company's Chevrolet truck components and sells at higher average prices than its GM siblings.

Duncan Aldred, GM's U.S. vice president for Buick and GMC, said in an interview that there are no plans to expand GMC to new regions, or to introduce all-new models in the next five years. However, he expects low fuel prices and strong U.S. demand to continue. "We're looking for a [sales] record this year," Mr. Aldred said.

One reason for that optimism is that GMC is unveiling its new Acadia midsize SUV on Tuesday at the North American International Auto Show in Detroit, the first ground-up overhaul of the vehicle in a decade. Despite its age, the Acadia enjoyed its best sales ever in 2015. The latest version should hit U.S. showrooms in May or June, and sports cleaner lines and a more aggressive look. The new Acadia is 700 pounds lighter than its predecessor, and includes a host of the latest technologies such as advanced all-wheel drive, and a 4G LTE hot spot.

GMC's other products are also either new or selling like hotcakes. Last year was the first full year for sales of the Canyon midsize pickup, and demand outstripped supply so much that GMC hasn't had to spend money on incentives or advertising, the company said. GM sold more than 30,000 of the trucks in the U.S. last year, says market researcher Autodata Corp. The Canyon has succeeded in its goal of stealing market share from midsize truck rivals Toyota Motor Corp. and Nissan Motor Co., while also luring buyers of larger pickups like the Ford F-150 and the Chevy Silverado.

The GMC Sierra fullsize pickup also was refreshed late in 2015 as was the GMC Terrain compact SUV. Demand has also been strong for the fullsize Yukon SUV, with more than half of Yukon buyers opting for the pricey Denali trim package, Mr. Aldred said. About half of Sierra customers also choose the Denali option.

Those consumers, Mr. Aldred said, spend between $60,000 and $75,000, and aren't as sensitive to fuel prices. He also argued that the recent surge in demand for pickups and SUVs isn't strictly led by inexpensive gasoline, but is part of an "irreversible shift to SUVs" that he first observed while leading Vauxhall in Europe. He said consumers prefer SUVs and crossovers because of their utility, higher driving position and better view of the road.

With sales of about 644,000 vehicles in the U.S. and Canada last year compared with 578,000 in the prior year, the GMC brand is GM's second-largest seller in North America after Chevrolet and third internationally behind Buick. Mr. Aldred said GMC vehicles collect among the highest average transaction price outside of luxury brands at roughly $43,000. He said GMC is one of the most profitable car brands in the world.

Given the brand's dependence on trucks and SUVs, there is always concern that a spike in the price of oil could slow demand. Mr. Aldred acknowledged the cyclical nature of auto sales, but said he doesn't see a large fall off in the next two to three years. He also said GMC is steadily improving the fuel economy in its vehicles and that over the next four to five years average gas mileage should reach 30 miles per gallon.

Still, with record sales expected in 2016, there are no plans to introduce a GMC car, or a hybrid or electric pickup or SUV in the near future.

"We're not going to lead on technology," Mr. Aldred said of GMC, pointing to Chevrolet's growing lineup of electric and hybrid vehicles, most recently the new Chevy Bolt electric vehicle.

"We're optimizing more traditional technologies."

Write to Gautham Nagesh at gautham.nagesh@wsj.com

(END) Dow Jones Newswires

January 12, 2016 08:05 ET (13:05 GMT)

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