Next-Gen Sierra and Yukon to Get Electrified Powertrains

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GMC continues to rely heavily on big trucks and SUVs as the cornerstone of its business, with American consumers showing sustained enthusiasm for these vehicles. The Sierra full-size pickup and Yukon full-size SUV remain the brand’s flagship models, consistently delivering strong sales. Despite their ongoing success, GMC isn’t resting on its laurels. Engineers and designers are already hard at work developing the next-generation versions of these popular vehicles, aiming to keep them competitive and appealing in a shifting automotive landscape.

Much like its sibling brand Chevrolet, GMC is not yet ready to fully abandon internal combustion engines. This cautious approach makes sense given the cooling demand for electric vehicles (EVs), partly due to the rollback of federal EV incentives during the Trump administration. However, GMC’s electrification strategy isn’t limited to battery-electric vehicles. Plug-in hybrids are poised to play an increasingly important role in the lineup. General Motors CEO Mary Barra has confirmed that plug-in hybrid models will debut in GMC’s range in 2027, marking a key step toward more diverse electrification.

GMC

The year 2027 is also significant because GM plans to boost production of the Sierra at its Orion Township facility in Michigan. Automotive News suggests this timing may coincide with a mid-cycle refresh for the Sierra, followed by updates to the heavy-duty version in 2028. These refreshed models are expected to receive electrified powertrains as the primary upgrade, alongside subtle styling enhancements and improved onboard technology. The all-electric Sierra EV could also get its own redesign in 2028 to better align its appearance with the traditional gasoline-powered Sierra.

As for GMC’s Yukon and Yukon XL SUVs, a redesign is reportedly planned for 2029, with plug-in hybrid variants likely to join the lineup. Beyond these core models, the brand’s broader portfolio is also slated for updates. The fully electric Hummer, which began production in late 2021, is expected to undergo a mid-cycle refresh around 2028 for both its pickup and SUV variants. The relatively new Arcadia, launched in late 2023, could see an update by 2027 or 2028, while the Canyon midsize pickup may receive a refresh in 2029, six years after its introduction. The Terrain compact SUV, being newer, probably won’t get a facelift until 2028 or 2029.

Meanwhile, the venerable GMC Savana van, in production since 1996 with minimal changes, is expected to continue at least through 2026, with some reports hinting at possible production increases. It shares its platform with the Chevrolet Express.

gmc sierra

Industry expert Sam Fiorani, Vice President of Global Vehicle Forecasting at AutoForecast Solutions, highlighted GMC’s strong foothold in the upscale full-size truck market, stating, “Trucks are such an important part of the U.S. market, and GMC has cornered the segments that are a bit more upscale than Ford or Chevrolet.”

This strategy is clearly paying off. GMC reported its best-ever first-half sales in 2025, moving 315,906 units—a healthy 11 percent increase over the previous year. The Sierra led the charge with 166,409 units sold, marking a 12 percent rise, while the Yukon followed with 48,190 units, up 22 percent. The Terrain, however, experienced a 34 percent sales decline with 32,361 units sold. On the upside, the Hummer EV posted the largest percentage gain, climbing 74 percent to 7,987 units in the first half of 2025. Still, it remains one of GMC’s slower sellers, just ahead of the newly launched Sierra EV, which recorded 2,774 units sold during the same period.

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