Joecooool

A few weeks ago I emailed Bob Lutz about the ZR1 asking about production volume. Bob replied and referred my inquiry to Tom Wallace.

Tom Wallace wrote me back saying "at the recently announced $105,000 MSRP, the market segment is not large ". I asked him if you think the market for a $105,000 Corvette is small, how small is it when the stealerships start adding another $30,000 to the MSRP? If you want to insure a small run, you just did.

I provided links to Craigslist and ebay showing these guys what their "best" dealers were marking ZR1's up to.

Those of us in smaller markets who have bought multiple Corvettes from a specific dealership no longer have the option to do business with them if they didn't make the ZR1 list. GM is forcing us to deal with the Bill Heard's and Maxi Price's of the world instead of letting we, the loyal Corvette owner, choose whom we want to do business with.

I can't believe that with GM stock selling at under $10 a share they have the gall to tell anyone who can or can't move their product.

And before some of you go off on a tangent about how GM has no control over their dealer network, let me tell you this. I was number two on the list at my Lotus dealer two years before the first Elise was delivered in the United States. Lotus demanded - and got - that every dealer selling their car, sold it at MSRP. There was even a price increase before I received my car and the dealer had to honor my buyers agreement at the original MSRP. There was virtually no car flipping going on because anyone that wanted one could get the car at MSRP. As a result, Lotus has an outstanding reputation within the Lotus owners community for standing up for its customers.

By not allowing any dealership to place an order for a ZR1, GM is contributing to the price gouging by restricting competition.

Hows that for being a loyal Corvette customer?

mitimopar

Thanks for posting this. I'm glad that Tom does actually respond to direct e-mails. Please let us know when he replies to your last comments.

Mike

Joecooool

Tom forwarded my last email to Gary and did not reply.

Tavarez

Damn what a good question to bring up to Tom Wallace. It hurts me that I didn't ask him a question about this. If ya'll recall, a few weeks ago on badboyvettes.com they had a LIVE web cam feed from the corvette pits. Tom Wallace was actually on live ANSWERING questions as his wife read them to him. It was probably one of the neatest things i've seen, and it felt so personal. Anywho my point is I should have asked this same question, and got a response from Tom about dealer markups. Maybe there will be another day when Tom would be willing to go online in a similar web cam setup and answer questions. How crazy would that be, chief engineer, answering questions live again? If one of the badboyvette fellahs could get a hold and setup another one of those web cam chats, perhaps we could get some of our questions and concerns answered. New wave of customer service, new wave of GM success?

Infact corvetteforum, being such a powerful vanguard for the corvette community, should perhaps hold a chat with Tom Wallace live. Think of the publicity

vette-oholic

If GM could build AND sell more cars, they would. As stated in earlier threads, production is more likely a matter of supplier constraints. GM can build 2k cars per year and that's obviously not enough to satisfy the initial market, so price is MSRP + x

Maybe im not understanding the point of this thread?

Joecooool

There are several points to this thread.

1) GM is telling us, the Corvette customer that we can not buy our car from a dealer we have an established relationship with. The dealership that supports our Corvette club here in town is not on the list.

2) GM in many markets, is forcing us to deal with dealers that have horrible customer service records and very questionable business practices.

3) Competition drives the price lower and by restricting the number of dealers that can sell the ZR1 to about 10% of all Chevrolet dealers, GM is in fact contributing to the problem.

4) GM is aware of the price gouging and isn't doing anything to discourage it.

vette-oholic

Let's not forget what happened with the z06. after GM saw what dealers were getting, they hiked MSRP the following year. Perhaps, they are trying the same thing again and using the dealers as the test.
Pretty clever.

fastturbovette

GM is rewarding the dealers who have given the most to their bottom line - I think that is a responsible thing for any company to do, to reward their best salesmen.

GM also has stated they will build as many ZR1s as there are people willing and able to fork over $100k for one.

There are only so many they can build the first year. There are more people willing to buy one than there are first-year cars, so GM must - by definition - pick and choose which dealers get them. Letting people deal with any dealer they want doesn't really work, because then you get 5,000 orders (or whatever #) for the car, with only 2,000-some cars to fill them with.

What you are, in essense asking GM to do is to do what is best for you, at their detriment. Out of the 300 or so dealers who get cars the first year, I am sure anyone can find one that they're happy to deal with. But I also think you know that...

And honestly, you are welcome to go to your preferred dealer and place your order with them. You will get a ZR1. I think you also know that...

But if we want to be intellectually honest, your beef is not that you can't get one from your local dealer, it's that you can't get an EARLY car (i.e. a 2009 car) from your local dealer. The real beef is not that you can't get one from where you want, it's that you can't get one for the price you want to pay from the dealer you want to buy from.

Well, that's life. I don't think GM is beholden to you or anyone else to make the cars available to a dealer of your choice at the price you want to pay at that dealer. This is a hot commodity in 2009... market forces will set the price. I am 100% sure that, out of 300 dealer, you can find one who you will be happy to work with. If you can't get one at the price you like - well, that's not GM's fault. If you can't get an early or an '09 car, again that is not GM's fault either.

I think they did just fine with allocations, and I think they did it the only way a for-profit company can and should do it. There will always be someone who doesn't like how it's going down, and I think the reasons listed above are why the other GM guy didn't get back to you, because honestly the complaint is not valid IMO.

So really, your beefs as listed above are irrelevant.

vette-oholic

well said... and let's not forget that according to some of the info on this forum, it would appear that customer surveys weighed in heavier than dealer corvette sales.

So.. when OP says GM " is forcing us to deal with dealers that have horrible customer service records and very questionable business practices...." those questionable dealers likely got very few zr-1s due to cusomer surveys.

OilMaggott

Very Very Well Said......

GN1270

How can you compare Lotus to GM? They have different contracts. GM can only enforce what is in a contract. i am sure a lot of contracts go back decades.

Joecooool

I understand this. I disagree with it. The problem is they are rewarding based on sales, not customer satisfaction.

Oh, I agree. The problem is that the car isn't $100,000. With the gouging, its about $25,000 more.

No, they should be first come first serve. We already know by the number of dealers spamming Forum members that they do not have orders in hand for the cars they are going to take delivery of. Meanwhile, my little Chevy dealer down the street that I have known for years can't order the car from GM that he otherwise would have an order for.

That is incorrect. Allowing any dealer to place the order versus the select ones GM has anointed would make no difference to GM. It would show that GM actually gave a sh*t about their customers instead of just their dealers.

That is incorrect. I might possibly be able to order one from them through a dealer trade but then the dealer would have to give up a lot more than the MSRP of the car to get one. So ultimately, I would still be in the same price gouging situation.

I am being intellectually honest. GM has not said that ultimately any dealer will be able to sell the car. In fact, I was told the reason these specific dealers were selected was because they were the only ones that had service people that would be trained on maintaining the ZR1.

Yea, that's exactly what I said.

What? I'm asking for too much to go to a Chevy dealer and pay MSRP for a car? You actually believe that is too much to ask???

Yes it is. If GM allowed any dealer to place the order, the smaller ones would be selling their loyal customers the car at MSRP. Shouldn't I as the customer have the right to decide who I want to give a hundred grand to?

Yes it is, GM made the list.

He didn't get back to me because they are not going to change their policy.

No, my beef is relevant. It pissed me off - and many others as this forum has shown - to the point that I no longer give a crap about owning a ZR1. GM makes as much money from a car sold at MSRP as they do when a dealer ***** over a customer for $25K over MSRP. Had I the opportunity to buy a car from my dealer at MSRP GM would have the order and a happy customer. Now they don't. ...

I won't forget that.

And I'm shocked that anyone would support any program that allows the dealers to **** over loyal Corvette owners.

Competition drives the market. Allowing any dealer to put in an order would end the gouging overnight.

mousecatcher

Lotus is a boutique car company. GM is a mega corporation.

Sounds like you are basically upset that your loyalty to GM isn't being rewarded. Welcome to the free market.

FIVEPOINTSEVEN

You seen GM's stock price lately?? Looks more like a boutique company these days lol.

eurostyle

GM is a mega corporation going down the drain. I agree with Joecool and I am not going to buy another freaking GM car or truck ever again. The corporate mindset of those bozos is unreal and unbelievable. This allocation cr@# with the ZR1 is beyond my comprehension.

GM, I wish you luck in your bankrupcy proceedings.

AGFNTB

These threads are funny.

mousecatcher

last time i checked, GM is in fact a corporation.

C5-2003

I intend to send some emails also and thank you for the email addresses. The GM allocation of the ZR1s is a complete fiasco and it is causing a lot of ill-will both on the part of the dealers and their corvette customers. As a member of a family which owned a Chevrolet dealership in the good old days, I just shake my head and say...."and they wonder why their stock is at a 54 year low of $9.00+ per share." The answer is that they earned it.

2006c6keller

All I can say is that my GM stock went SOUTH and I didn't earn it! Then, like a fool I bought one of their Vettes, only MORE troubles. Will it ever end with GM?

2KZ28CAM

I have no relevant contribution to the discussion, but I welcome a continuation of the OP's points. Perhaps this vehicle should have introduced a new allocation/pricing/restriction/ownership requirement paradigm.