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Barra Isn’t Ruling Out Corvette Sub-Brand

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#1 ·
GM Boss Isn’t Completely Ruling Out Chevy Corvette Sub-Brand
Never say never.
DEC 04, 2019
Christopher Smith
motor1.com

Still seething over Ford’s decision to brand its new electric four-door crossover a Mustang? Rumors have swirled for some time that General Motors could ultimately create a Corvette sub-brand, and a recent report from Motor Trend doesn’t completely shut the door on such a notion. The word reportedly comes from GM CEO Mary Barra, who suggested a Corvette sub-brand was unlikely but didn’t rule out the idea.

As quoted by Motor Trend, Barra reportedly said “you have to be really careful…” and later said, “I’m not going to say never, but I think if General Motors were to ever do anything, we would assess it very, very carefully.” The million-dollar question at this point is whether that assessment is already in progress, and that’s where GM is mum on the subject.

CONTINUE AT LINK ABOVE
 
#2 · (Edited)
The MotorTrend article is worth a read, but this nugget is corporate double-speak and certainly leaves the door open.

I know there are plenty of people who will disagree with me, but GM should have crated a stand-alone Corvette brand a decade (or more) ago. As "focused" sports-car brands like Porsche have moved into sedans and SUVs (and more like Aston Martin, Ferrari, and very possibly Lotus, following suit), there is a world of untapped potential that could be realized by turning Corvette it's own marque.
motor1.com said:
Would a Corvette sub-brand make sense? From a financial perspective it seems a near certainty, at least according to a report from Morgan Stanley contributor and auto industry analyst Adam Jonas. He believes such a sub-brand could ultimately be worth upwards of $12 billion, though that certainly depends on the models the Corvette brand would offer. Some would argue that Corvette is already something of a sub-brand, with base-model C7 sports cars available under $60,000 and a range of variants that lead to the $120,000, 755-horsepower ZR1. Of course, in this context we’re talking about Corvette crossovers, Corvette EVs, and possibly even Corvette sedans to accompany the mid-engined 2020 C8 Stingray.
I don't know if I can agree with that $12 Billion dollar figure (I'm not an analyst crunching numbers), but it certainly could be a huge revenue maker for GM. What's more, if some of those planned products (SUVs, sedans, crossovers, or otherwise) were engineered and planned with a luxurious Cadillac variant in mind, it could create a natural means within GM to justify green-lighting expensive processes and programs.

We all know that GM is heavy on the bean-counters, committees, customer clinics, etc. The true "car guys" have to fight tooth and nail to get solid products to market. Part of that is due to making sure that margins are met. A potential Corvette brand is an untapped asset. If they were to combine developmental programs with Cadillac, and margins are thick enough on such products to warrant continued expansion and investment, than any Corvette-branded products could very well turn into resource for other GM programs (much in the way that pick-up and large-SUV profits help to fill the coffers for to not only deliver profits, but fuel "money-losing" or "break-even" product programs).

Just my two cents.
 
#29 ·
The MotorTrend article is worth a read, but this nugget is corporate double-speak and certainly leaves the door open.

I know there are plenty of people who will disagree with me, but GM should have crated a stand-alone Corvette brand a decade (or more) ago. As "focused" sports-car brands like Porsche have moved into sedans and SUVs (and more like Aston Martin, Ferrari, and very possibly Lotus, following suit), there is a world of untapped potential that could be realized by turning Corvette it's own marque.

I don't know if I can agree with that $12 Billion dollar figure (I'm not an analyst crunching numbers), but it certainly could be a huge revenue maker for GM. What's more, if some of those planned products (SUVs, sedans, crossovers, or otherwise) were engineered and planned with a luxurious Cadillac variant in mind, it could create a natural means within GM to justify green-lighting expensive processes and programs.

We all know that GM is heavy on the bean-counters, committees, customer clinics, etc. The true "car guys" have to fight tooth and nail to get solid products to market. Part of that is due to making sure that margins are met. A potential Corvette brand is an untapped asset. If they were to combine developmental programs with Cadillac, and margins are thick enough on such products to warrant continued expansion and investment, than any Corvette-branded products could very well turn into resource for other GM programs (much in the way that pick-up and large-SUV profits help to fill the coffers for to not only deliver profits, but fuel "money-losing" or "break-even" product programs).

Just my two cents.
A Corvette brand has a very significant Achilles' heel: the brand derives its power from offering extreme performance at a discount.

The new C8 should (and would at another brand or as another product), based purely on performance, start at close to $100,000—and at that, it's still closer to a 911 Turbo ($160k+) in performance than the base 911.

It starts at $60,000.

A Corvette brand would duplicate Cadillac in lineup, configuration, and likely trail in sales success without Porsche-rivaling profit margins.

GM can't commit the necessary resources to elevate the brands they have, and that they have lined out as strategically vital, so to even pretend they can or would do so for an entirely different one is a flight of extreme self-delusion.

Best case for a Corvette brand would be as basically an ICE version of an EV Cadillac, and that's a pretty bad idea.
 
#4 ·
Agreed. But I think I read someplace that they couldn't keep the C7 going at the same time. I don't know if I really remember the explanation (and Lord knows if was an actual/tangible reason, or merely a corporate excuse to kill off the line), but Tadge Juechter was the interviewee making the comment.
 
#5 ·
With the Porsche Tincan now out, what would people think of a high-perf Corvette EV? Say a AWD 4 door SUV-ish thing. Apparently Caddy is moving heavily into EV over the next few years, to share dev costs the new Vette would prob need to be an EV (my speculation).

I assume “sub-brand” means still sold at Chevy dealers? (Not a new dealer network.) Maybe a few specialized dealers too?
 
#6 · (Edited)
Final thought, how about a ICE Vette coupe based on the upcoming Blackwing CT5-V? Turn Lansing into “the Cadillac/Vette factory” (in addition to Bowling Green of course). Ultra high perf, all the bells and whistles, fantastic styling, +$100K.
 
#8 · (Edited)
In before the obligatory "Porsche is a brand, Corvette is a model" posts...you're right, all they're going to do is speculate and study, do nothing and let the market pass them by. The C7 - C8 transition was the perfect time to get this whole thing off the ground...instead they wasted the opportunity and are now "reportedly" ;-) selling the C8 at a loss to keep the price in line with where the C7 was (TBH I don't believe that for a second, I think the "at a loss" is a cheap salesman tactic).

With the Porsche Tincan now out, what would people think of a high-perf Corvette EV? Say a AWD 4 door SUV-ish thing. Apparently Caddy is moving heavily into EV over the next few years, to share dev costs the new Vette would prob need to be an EV (my speculation).

I assume “sub-brand” means still sold at Chevy dealers? (Not a new dealer network.) Maybe a few specialized dealers too?
Too late for a Corvette EV CUV, Ford already beat them to the punch w/ the Mach E....that'll be a straight up copycat move if they did that.

Taking an additional step, a Corvette lineup would look like the below:

C7 (grand Tourer) facelifted C7
4D Sedan based off facelifted C7:


CUV:


and of course the C8

These would then be sold out of Cadillac dealerships to 1. give high end buyers a high end experience and 2. Give Camaro the position as top dog on the Chevy showroom and allow for expansion of that brand without the "Corvette ceiling".
 
#9 ·
I'm fine with a Corvette sub-brand, and I'm also fine with a Mustang "family." HOWEVER, I absolutely disagree with how Ford did it. There's zero connection between the Mustang Coupe and the Mustang CUV. If there were an electric Mustang coupe, I might be okay with it. If there were a 5.0 V8 Mustang CUV, I could probably get behind it. But the two models are completely disconnected. The only thing they share is the badge and tri-bar tailights, and I just don't think it's nearly enough. It's desperation marketing.
 
#10 ·
Problem is that you see it as desperation...but its successful marketing as they've already sold out of the Launch Edition Mach Es...also, how many of the customers are going to be new to the Ford brand, and there is probably a likelihood that some of these will purchase an actual Mustang GT to go along side their Mach E. Its pretty genius marketing if you ask me.
 
#11 ·
I think it will be a sure thing we see a full line of Vette models. The Porsche project has been a success for them and I think that’s what they were waiting to see if it succeeded or not. The lineup will probably include the next gen Camaro being a front engine design entry level coupe in coupe and convertible form. Entry level CUV followed by the high dollar options in the C8, sedan and midsize CUV. I’d expect ice engine options in only the coupes with the rest being EVs only.
 
#14 ·
That would require the GM braintrust be =/> Porsche smart people. I'm not holding my breath on that. Mary sounds more like the speaker of the house every day.

But I HAVE come up with a name. Yes, there's Vette II (like Chevy II, very clever no?), Vettevelle, Vettabu, Vettpala, Vettrado, Vettinox...hey, Saturn's already been used and ruined, how about Uranus? :confused:
 
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#24 ·
The big problem with this plan is that Porsche - surely the model for this effort - enjoys much stronger pricing for its anchor models, the sports cars that give Porsche its identity. 911s are about 50% more that Corvettes. Porsche SUVs can take advantage of the high price/prestige of the 911 in setting their prices. Corvette SUVs wouldn't have that pricey reputation to build off of to support high prices for the new models. That's the flaw in this plan. Maybe not fatal, but definitely would confine pricing.
 
#32 ·
...Supreme LX STD.
 
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#33 ·
Oh stop it. This will never happen.

The Stingray,Grand Sport,Z06 and ZR1 are the most of a Corvette sub brand GM will ever provide.

And much like others have said; GM doesn't have a clue into how to even define and market such a brand. Just look at what GM has done with GMChevy,Buopelevyick,and Chevrollac.
 
#35 · (Edited)
One of the reasons we might be getting a sub-brand out of Mustang is because of electrification which is a tricky boundary to cross. Electrification is key to performance going forward, but how do you make that transition while preserving the majority customer? Adding models to the nameplate might be neccessary. The only problem with the Mach-E is that it really wasn't birthed as a Mustang compliment, they are just using Mustang style and branding to motivate its team and customers to get onboard a product that was quite boring.

I think the sub-brand actually worth paying attention to is Bronco. We are getting two Broncos at the same time to reach different customers. It's easy to see this as Ford's effort to take on Jeep and it's clearly designed as a sub-brand from the start.

Corvette seems like a hard one to sub-brand outside of the exotic car scope they are in. Mustang is a little more malleable perhaps, you can see a 4-Door Mustang without too much controversy and it's something people have speculated about for years. And now that we have a Mustang EV Crossover that actually looks pretty good, it seems to work for some people. And in the case of Ford, it's their only car brand remaining so the strength of the brand could contribute to other car models, especially as we move into electrification. Making Mustang or Corvette the EV flagships isn't such a bad idea.
 
#43 ·
[QUOT
What a horrific idea...................









E=sdotjeezy;7207265]In before the obligatory "Porsche is a brand, Corvette is a model" posts...you're right, all they're going to do is speculate and study, do nothing and let the market pass them by. The C7 - C8 transition was the perfect time to get this whole thing off the ground...instead they wasted the opportunity and are now "reportedly" ;-) selling the C8 at a loss to keep the price in line with where the C7 was (TBH I don't believe that for a second, I think the "at a loss" is a cheap salesman tactic).



Too late for a Corvette EV CUV, Ford already beat them to the punch w/ the Mach E....that'll be a straight up copycat move if they did that.

Taking an additional step, a Corvette lineup would look like the below:

C7 (grand Tourer) facelifted C7
4D Sedan based off facelifted C7:


CUV:


and of course the C8

These would then be sold out of Cadillac dealerships to 1. give high end buyers a high end experience and 2. Give Camaro the position as top dog on the Chevy showroom and allow for expansion of that brand without the "Corvette ceiling".[/QUOTE]
 
#44 ·
^^^^^^^^^^^^^^^ Not Corvette Sub Brand waste of Time, Chevrolet only has the Camaro and Corvette, just build both those above and call them something under Chevy brand and be done with it.****
 
#45 ·
The Chevrolet you loved as a brand is pretty much dead....its now a Toyota-eque mainstream brand that sells trucks and appliances. Their sedans are dead/dying and their CUVs are blah. If it weren't for their 3 halo products, Camaro, Corvette and Tahoeburb, they'd really have nothing. Also, keep in mind there is a bit of separation already of Corvette from the rest of Chevy, If i'm not mistaken dealerships have to be Corvette certified in order to sell the vette, there's no other vehicle in their lineup that requires a separate level of requirements to service...I mean dealers don't have to be Malibu or Impala certified...do they?
 
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