Chevy temporarily halts Corvette production
09-16-2008, 11:32 PM
#1
Racer
Thread Starter
Chevy temporarily halts Corvette production
Chevy temporarily halts Corvette production
By JOHN AUSTIN
First, high fuel prices take the fun out of driving fast.
Now the economy slams the brakes on Chevrolet’s iconic Corvette.
"It’s a 'miniskirt economy’ car," said Rebecca Lindland, an analyst for Global Insight, an economic research and consulting firm. When the economy’s doing well, skirts get shorter, or so goes the theory. When things slow down, skirts get longer.
"You want to flaunt the idea that you’re doing well," Lindland said. "The Corvette does that better than any other vehicle. But these are not flaunting times."
The news that Chevy will halt production came just as parent General Motors was celebrating its 100th birthday — and as it hits up Congress for billions in low-interest loans. General Motors has announced plans to close other plants, and, after a $15.5 billion second-quarter loss, will drop sponsorship for the 2009 Oscars and Emmys, according to the Los Angeles Times. GM lost about $39 billion in 2007.
The halt on the Corvette, a sports car that generations of Americans have drooled over, is scheduled from Oct. 6 to Oct. 13. Wendy Clark, a Chevy spokeswoman, said she couldn’t recall the last time Corvette production was shut down.
"They just built a few too many," said Haig Stoddard, a Global Insight analyst. "Demand overall is down, and especially for the Corvette. Sales this year are down on the Corvette about 14 percent."
The Bowling Green, Ky., plant that builds the Corvette will see layoffs of about 70 hourly employees, according to plant communications director Andrea Hales. When workers return, they’ll trim production from 18.5 cars an hour to 15 an hour, Hales said.
Production on the Cadillac XLR, also made in Bowling Green, will be halted temporarily beginning in October, Hales said. The Cadillac hardtop shares the Corvette platform.
"With the economy being what it is, with gas prices being what they are, we are seeing the effects of that on the luxury car segment," Hales said. "I would say there’s just a sense of uncertainty."
Chevrolet sold 33,685 Corvettes in 2007, Stoddard said. GM recently made employee pricing available to the public in hopes of moving inventory. Not usually available on Corvettes, the special pricing sliced what Vandergriff Chevrolet dealer Rick Cantalini called "a ton of money" from the car.
The manufacturer’s suggested retail price for the 2008 Corvette coupe is $46,100, according to the Motor Trend website . Thanks in part to the employee pricing, August 2008 Corvette sales rose about 49 percent from a year earlier to about 4,000 cars, Clark said.
The pricing, available only on 2008 models, runs through Sept. 30 and would reduce the price of a base model Corvette by about $6,000, taking the final tab to $40,876, Vandergriff Chevrolet general sales manager Bob Clark said.
"In 2007, we built more Corvettes than we’ve ever built," Clark said. "It’s a double-edged sword. We built a lot of cars to meet demand."
Stoddard called the outlook for the rest of the year "pretty poor."
"A lot of people are waiting," he said. "I think when you see your stock portfolio take a dip, you pull back for a while."
A new generation of Corvettes that might lure performance fans back into showrooms is not scheduled to appear for a couple of years. But according to Lindland, many potential customers won’t care until then anyway.
"There’s certainly no sign of recovery," she said. "I don’t think anybody can say things are going to be back to normal in the next four to six quarters."
But Chevy isn’t sidelining the ’vette permanently, Clark said.
"Corvette is probably an optional car for a lot of folks," but, Clark said, "We’re definitely committed to continuing the car."
Terry Malone isn’t worried about new Corvettes. He has a couple of dozen old ones at his Southlake classic car emporium, Corvette World.
"When the market is down, my business is usually up," Malone said. "Now that Lehman Brothers has gone under, it has slowed our business down. A lot of people are going to wait until after the election."
But not Jason Baker, who runs the family’s West Texas oil and cattle business from his home in Clifton, near Waco.
He just wrote a check for something close to $65,000 for a new "jet stream blue" 2008 Corvette coupe with black leather interior. He claims it’s getting about 30 miles per gallon on high-octane gas. Buying American was important to the 28-year-old Army veteran, and he has always loved the styling.
"I’ve had it all the way to 210 with no strain on the engine, on the flat, empty roads of West Texas," Baker said, adding that he hasn’t received a speeding ticket. "All the DPS [troopers] are down on the coast."
But he did spring for a radar detector.
"Every time you pass every officer, they hit you with radar," Baker said. "If you’re going to buy a Corvette, you better buy a radar detector."
JOHN AUSTIN,
By JOHN AUSTIN
First, high fuel prices take the fun out of driving fast.
Now the economy slams the brakes on Chevrolet’s iconic Corvette.
"It’s a 'miniskirt economy’ car," said Rebecca Lindland, an analyst for Global Insight, an economic research and consulting firm. When the economy’s doing well, skirts get shorter, or so goes the theory. When things slow down, skirts get longer.
"You want to flaunt the idea that you’re doing well," Lindland said. "The Corvette does that better than any other vehicle. But these are not flaunting times."
The news that Chevy will halt production came just as parent General Motors was celebrating its 100th birthday — and as it hits up Congress for billions in low-interest loans. General Motors has announced plans to close other plants, and, after a $15.5 billion second-quarter loss, will drop sponsorship for the 2009 Oscars and Emmys, according to the Los Angeles Times. GM lost about $39 billion in 2007.
The halt on the Corvette, a sports car that generations of Americans have drooled over, is scheduled from Oct. 6 to Oct. 13. Wendy Clark, a Chevy spokeswoman, said she couldn’t recall the last time Corvette production was shut down.
"They just built a few too many," said Haig Stoddard, a Global Insight analyst. "Demand overall is down, and especially for the Corvette. Sales this year are down on the Corvette about 14 percent."
The Bowling Green, Ky., plant that builds the Corvette will see layoffs of about 70 hourly employees, according to plant communications director Andrea Hales. When workers return, they’ll trim production from 18.5 cars an hour to 15 an hour, Hales said.
Production on the Cadillac XLR, also made in Bowling Green, will be halted temporarily beginning in October, Hales said. The Cadillac hardtop shares the Corvette platform.
"With the economy being what it is, with gas prices being what they are, we are seeing the effects of that on the luxury car segment," Hales said. "I would say there’s just a sense of uncertainty."
Chevrolet sold 33,685 Corvettes in 2007, Stoddard said. GM recently made employee pricing available to the public in hopes of moving inventory. Not usually available on Corvettes, the special pricing sliced what Vandergriff Chevrolet dealer Rick Cantalini called "a ton of money" from the car.
The manufacturer’s suggested retail price for the 2008 Corvette coupe is $46,100, according to the Motor Trend website . Thanks in part to the employee pricing, August 2008 Corvette sales rose about 49 percent from a year earlier to about 4,000 cars, Clark said.
The pricing, available only on 2008 models, runs through Sept. 30 and would reduce the price of a base model Corvette by about $6,000, taking the final tab to $40,876, Vandergriff Chevrolet general sales manager Bob Clark said.
"In 2007, we built more Corvettes than we’ve ever built," Clark said. "It’s a double-edged sword. We built a lot of cars to meet demand."
Stoddard called the outlook for the rest of the year "pretty poor."
"A lot of people are waiting," he said. "I think when you see your stock portfolio take a dip, you pull back for a while."
A new generation of Corvettes that might lure performance fans back into showrooms is not scheduled to appear for a couple of years. But according to Lindland, many potential customers won’t care until then anyway.
"There’s certainly no sign of recovery," she said. "I don’t think anybody can say things are going to be back to normal in the next four to six quarters."
But Chevy isn’t sidelining the ’vette permanently, Clark said.
"Corvette is probably an optional car for a lot of folks," but, Clark said, "We’re definitely committed to continuing the car."
Terry Malone isn’t worried about new Corvettes. He has a couple of dozen old ones at his Southlake classic car emporium, Corvette World.
"When the market is down, my business is usually up," Malone said. "Now that Lehman Brothers has gone under, it has slowed our business down. A lot of people are going to wait until after the election."
But not Jason Baker, who runs the family’s West Texas oil and cattle business from his home in Clifton, near Waco.
He just wrote a check for something close to $65,000 for a new "jet stream blue" 2008 Corvette coupe with black leather interior. He claims it’s getting about 30 miles per gallon on high-octane gas. Buying American was important to the 28-year-old Army veteran, and he has always loved the styling.
"I’ve had it all the way to 210 with no strain on the engine, on the flat, empty roads of West Texas," Baker said, adding that he hasn’t received a speeding ticket. "All the DPS [troopers] are down on the coast."
But he did spring for a radar detector.
"Every time you pass every officer, they hit you with radar," Baker said. "If you’re going to buy a Corvette, you better buy a radar detector."
JOHN AUSTIN,
09-16-2008, 11:40 PM
#2
Le Mans Master
Hi 130NA5-
210?? Ha!
Was that klicks?
I heard that C5 production was terminated indefinitely.
best regards-
mqqn
210?? Ha!
Was that klicks?
I heard that C5 production was terminated indefinitely.
best regards-
mqqn
09-17-2008, 12:35 AM
#4
Le Mans Master
Wow,,a $39 billion loss,that ought to make the CEO eligible for about a $$3.5 million bonus to make up for the money he's lost on his stock options. Rodger Smith lost billions and they gave him something like a 6 or 9 million buy out plus 2 million a year retirement. Something is screwy in this country!!
09-17-2008, 12:49 AM
#5
Burning Brakes
Found this on Autoblog:
It's been more than a decade since the "recession-proof" Chevrolet Corvette had to endure a production cut due to excess dealer inventory, but that's apparently the case once again. Citing slow sales related to the ongoing automotive recession, GM will turn off the Corvette's factory lights during the week of October 6th. When Vette assembly resumes the following week, production will be scaled back to 15 cars per hour (normal speed is 18.5 cars per hour). Unfortunately, GM says layoffs will accompany the new schedule at the Bowling Green facility, with up to 75 workers losing their jobs. While surprising, the news isn't entirely unexpected. Corvette sales were down 8.5 percent for the year through August of 2008. They only rebounded after GM included the model in its employee pricing sale... and we all know a shot in the arm like that won't hold out over time.
http://www.autoblog.com/2008/09/15/c...ue-to-economy/
It's been more than a decade since the "recession-proof" Chevrolet Corvette had to endure a production cut due to excess dealer inventory, but that's apparently the case once again. Citing slow sales related to the ongoing automotive recession, GM will turn off the Corvette's factory lights during the week of October 6th. When Vette assembly resumes the following week, production will be scaled back to 15 cars per hour (normal speed is 18.5 cars per hour). Unfortunately, GM says layoffs will accompany the new schedule at the Bowling Green facility, with up to 75 workers losing their jobs. While surprising, the news isn't entirely unexpected. Corvette sales were down 8.5 percent for the year through August of 2008. They only rebounded after GM included the model in its employee pricing sale... and we all know a shot in the arm like that won't hold out over time.
http://www.autoblog.com/2008/09/15/c...ue-to-economy/
09-17-2008, 11:07 AM
#8
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