Chevrolet loses money selling cheap Corvettes

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Thread: Chevrolet loses money selling cheap Corvettes

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    Chevrolet loses money selling cheap Corvettes

    If the mid-engine 2020 Corvette Stingray’s $59,995 price seems like good deal, that’s because it is.

    But maybe not for Chevrolet. Motor Trend reports that Chevy will take a loss on every Stingray sold for under $79,995, which is enough to get you a well-optioned 3LT trim level coupe equipped with a Z51 performance package.

    https://www.foxnews.com/auto/chevrol...heap-corvettes

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    Re: Chevrolet loses money selling cheap Corvettes

    https://www.gminsidenews.com/forums/...leader-295545/ Been there done this, just a different source relying on the same source.

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    Re: Chevrolet loses money selling cheap Corvettes

    Doesn't this seem rather stupid? It would be great if you're in the market for a Corvette. But, it's not like the Corvette lacks recognition and needs incentives to attract interest in a brand new model, particularly a model as new as the C8. I'm not saying that they should gouge people, but why not sell it for a profitable price while the demand is so high?
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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by ksr View Post
    Doesn't this seem rather stupid? It would be great if you're in the market for a Corvette. But, it's not like the Corvette lacks recognition and needs incentives to attract interest in a brand new model, particularly a model as new as the C8. I'm not saying that they should gouge people, but why not sell it for a profitable price while the demand is so high?
    I'd say because people aren't yet ready for a Corvette with a base price of $80k. I'm sure GM will transition the Corvette to that $80k base over a few years. If the C8 had a Porsche badge there wouldn't be an issue charging $150k for the base, but the Vette doesn't yet have that level of prestige.

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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by BlackGTP View Post
    I'd say because people aren't yet ready for a Corvette with a base price of $80k. I'm sure GM will transition the Corvette to that $80k base over a few years. If the C8 had a Porsche badge there wouldn't be an issue charging $150k for the base, but the Vette doesn't yet have that level of prestige.
    It seems like they barely increased the base over the C7. Hey, I'm all for a deal though I have no plans to buy a C8. But it seems like a poor business decision. $80K might have been too much of an increase in a year, but that $60K base seems too low. The Corvette buyer base isn't stupid. They know that this is an all-new car with stunning capabilities. They run the risk of using up a lot of their buyer pool on no-profit cars.
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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by ksr View Post
    I'm not saying that they should gouge people, but why not sell it for a profitable price while the demand is so high?
    It's from Motor Trend; it's not anything official from General Motors.

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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by BlackGTP View Post
    I'd say because people aren't yet ready for a Corvette with a base price of $80k. I'm sure GM will transition the Corvette to that $80k base over a few years. If the C8 had a Porsche badge there wouldn't be an issue charging $150k for the base, but the Vette doesn't yet have that level of prestige.
    I think the main problem is one that GM created years ago in keeping the Corvette affordable they boxed themselves into a corner. By not raising the brand starting with the C5 they really messed up the ceiling with the C8.

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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by 09W View Post
    It's from Motor Trend; it's not anything official from General Motors.
    True, and their information may not even be reliable at that.

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    Re: Chevrolet loses money selling cheap Corvettes

    It's simple logic.
    Chevrolet planned on an MSRP of $79,995. That says ZERO about where the break-even would be, except that it would be UNDER that number.
    Senselessly assuming (without hard data) that anything under that is a "loss" is based on the theory that Chevy planned to make $0 per car at $79,995.

    Chevy is not going to build a brand new car with a planned MSRP that gives them a hard loss.
    Yes; I'm aware that another 'journalist source' said the Bolt "could" lose as much as $7500 per car, but that's not hard data; it's a wild guess.

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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by BlackGTP View Post
    I'd say because people aren't yet ready for a Corvette with a base price of $80k. I'm sure GM will transition the Corvette to that $80k base over a few years. If the C8 had a Porsche badge there wouldn't be an issue charging $150k for the base, but the Vette doesn't yet have that level of prestige.
    What the Brain Trust needs to do is build a pickumuptruck offen the 'vette chassis. People will gladly scratch the 100 grand barrier for a PUT. Then when they've gotten the marks used to a 100 or 110 grand Corvette PUT, start jacking up the real Corvette price. Nobody will notice!

    Quote Originally Posted by 09W View Post
    It's simple logic.
    Chevrolet planned on an MSRP of $79,995. That says ZERO about where the break-even would be, except that it would be UNDER that number.
    Senselessly assuming (without hard data) that anything under that is a "loss" is based on the theory that Chevy planned to make $0 per car at $79,995.

    Chevy is not going to build a brand new car with a planned MSRP that gives them a hard loss.
    Yes; I'm aware that another 'journalist source' said the Bolt "could" lose as much as $7500 per car, but that's not hard data; it's a wild guess.
    Wait, just wait a minute! You're saying a wild-ass guess is NOT hard data?????????????????
    Last edited by Neanderthal; 12-03-2019 at 11:26 AM.
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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by BlackGTP View Post
    I'd say because people aren't yet ready for a Corvette with a base price of $80k. I'm sure GM will transition the Corvette to that $80k base over a few years. If the C8 had a Porsche badge there wouldn't be an issue charging $150k for the base, but the Vette doesn't yet have that level of prestige.
    "but the Vette doesn't yet have that level of prestige" - and it will never do - GM as a whole has an image problem that keeps a lot of buyers out of the showrooms. They sell, sure, but for the 100.000$ shopper they will most probably look somewhere else. I am not talking car enthusiasts, I am talking general public.

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    Re: Chevrolet loses money selling cheap Corvettes

    C8s will trend upward, price wise. Doesn't everything? Still, I seriously doubt they're actually losing money with the base car.

    I'm holding out for a 120,000 dollar full size pickup myself. Now THAT will be prestigious!
    It sounded pretty good until I actually said it.

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    Re: Chevrolet loses money selling cheap Corvettes

    Corvettes have more prestige than people give them credit for. Yeah, a lot of people will never accept that they're the equal of a Porsche no matter what Chevy does. But does anyone know the ATP of the C7? They weren't exactly giving those away. Whenever I looked at those on the lot, very few were stickered anywhere near the base price. Many of them were well in excess of $70,000.
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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by 09W View Post
    It's from Motor Trend; it's not anything official from General Motors.
    Right, and it's amazing how much traction this story has gotten, and embellished, based on virtually nothing. Whoever the source might have been, and assuming this wasn't intentionally leaked, GM needs to crush it.

    And let's not forget that Motor Trend already botched the whole dyno testing thing, becoming a debacle due to their own mistakes, yet they used it as an excuse to insinuate that Chevy sent them a "ringer". I guess one could argue that they made up for it by naming the Vette their Car of the Year, but I still think they're reckless and generally pro-import.

    Determining profitability is a tricky business, and often includes R&D costs with an unknown sales volume over the life of the vehicle, and not accounting how some of that development might trickle into future product. That's why I think this story is BS, and Motor Trend shamefully made it into headline news that now all the other vultures have picked up on. If it was a story about Kia selling the Telluride at a loss, you would have never seen it spread, no less to Fox News.
    Last edited by yamahr1; 12-03-2019 at 11:02 AM.

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    Re: Chevrolet loses money selling cheap Corvettes

    Quote Originally Posted by yamahr1 View Post
    Right, and it's amazing how much traction this story has gotten, and embellished, based on virtually nothing. Whoever the source might have been, and assuming this wasn't intentionally leaked, GM needs to crush it.
    Let's wait and see, if the C8 prices start going up by several thousand dollars after the first model year... it might be true.
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