Large language models (LLMs) have recently demonstrated strong potential for autonomous vehicle motion planning by reformulating trajectory prediction as a language generation problem. However, deploying capable LLMs in resource-constrained onboard systems remains a fundamental challenge. In this paper, we study how to effectively transfer motion planning knowledge from a large teacher LLM to a smaller, more deployable student model. We build on the GPT-Driver framework, which represents driving scenes as language prompts and generates waypoint trajectories with chain-of-thought reasoning, and investigate two student training paradigms: (i) on-policy generalized knowledge distillation (GKD), which trains the student on its own self-generated outputs using dense token-level feedback from the teacher, and (ii) a dense-feedback reinforcement learning (RL) baseline that uses the teacher's log-probabilities as per-token reward signals in a policy gradient framework. Experiments on the nuScenes benchmark show that GKD substantially outperforms the RL baseline and closely approaches teacher-level performance despite a 5$\times$ reduction in model size. These results highlight the practical value of on-policy distillation as a principled and effective approach to deploying LLM-based planners in autonomous driving systems.