For years, rumors have been rife that GMC is plotting a new subcompact crossover to slot below the GMC Terrian and capitalize on the segment's popularity. Last year, GMC denied these rumors as the brand wants to focus on trucks and off-road-focused AT4 trims.

One year later, it looks like GMC is having a change of heart. Citing insiders at General Motors, GM Authority claims that GMC's small crossover could finally be happening as the project is "closer than ever to being green-lit" for production. If the project does get the greenlight, GMC's new subcompact crossover will be smaller and cheaper than the GMC Terrain, which starts at $25,000.

As for the name, the new GMC subcompact is expected to be called either the Granite or Graphyte based on trademark filings GM has submitted recently. The subcompact will reportedly ride on the same VSS-F platform as the Trailblazer and Encore GX, as well as the next-generation Equinox and Terrain. Despite sharing the same platform, GM Authority's sources claim the new GMC subcompact crossover will be "highly differentiated" compared to the Trailblazer and Encore GX.

Additionally, the final production model's design won't be inspired by the GMC Granite concept that debuted at the Detroit Auto Show back in 2009, which featured a boxy design, rear-hinged doors, and a turbocharged inline-four engine generating 138 hp and 148 lb-ft of torque.

Since the project hasn't been approved yet, we could still be waiting a long time for the production GMC Granite to arrive, although sharing the same platform as the Trailblazer and Encore GX should reduce the development time.

General Motors wanting to capitalize on the subcompact crossover segment isn't surprising considering how popular this bodystyle has become. The Chevrolet Trax and Buick Encore continue to dominate the market, and introducing a new GMC subcompact crossover would no doubt boost sales and help GM achieve its target of 600,000 annual sales in the US.