Kens Weekly Newsletter - 2/23/05 - 2006 News!
02-24-2005, 01:00 AM
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Kens Weekly Newsletter - 2/23/05 - 2006 News!
Hello!
This week’s news includes:
1) Latest Production Constraints
2) Final 2005 Production Date – UPDATED 2/23/05
3) Initial 2006 Coupe/Convertible Production Date – UPDATED 2/23/05
4) Initial 2006 Z06 Production Date – NEW 2/23/05
5) Early Build Out Colors 2006 Coupe/Convertible – UPDATED 2/23/05
Two weeks ago I announced that due to time constraints and the fact that we have some very talented gentlemen working for us, that I would was significantly reducing the length and content of my newsletter.
I think that Dennis and Bob are doing a great job!
I have asked Bob to update his newsletter with a COMPLETE listing of all of the C5 and C6 items that we offer including his special pricing and photos.
I have also asked Bob to update his parts ordering website with photos, and prices for all of the new items that we are offering so that it’s easy to do business with us!!!
Check out their latest news again this week.
Please let each of us know what other information you would like to see published.
POST A QUESTION TO EACH OF OUR FORUMS AND WE WILL DO OUR BEST TO GIVE YOU AN ANSWER!!!
GM Protection Plan News and FAQ:
Dennis Fichtner will be publishing a weekly newsletter with details on the GM Protection Plan. He will include a new “frequently asked question” each week. Look for this great addition soon. Finally, please remember that you won’t pay sales tax on a plan purchased from us.
Parts, Accessories and Service News:
Robert Wendorff will be publishing a weekly newsletter with details on all of our parts and accessories offerings. Watch for a weekly special as well as each week he will pick one item to sell at a deep discount. Note that we aren’t selling parts at a loss and then adding an exhorbidant amount for shipping and handling. Further, note that there isn’t any sales tax in Montana thus saving you more!
Fichtner Chevrolet personnel directory:
GM Protection Plans and New Car/Truck Sales:
Dennis Fichtner, Business Manager
gmpp@fichtnerchevrolet.com
406-628-4618 Ext 105
Corvette Sales and Advice
Ken Fichtner, General Manager
kenfichtner@fichtnerchevrolet.com
406-628-4618 Ext 103
Parts:
Robert Wendorff, Parts Manager
Parts@FichtnerChevrolet.com
406-628-4121
John Thomas Dorsey, Parts Specialist
Parts@FichtnerChevrolet.com
406-628-4121
Service:
John Ingham, Service Manager
Service@FichtnerChevrolet.com
406-628-4618
Office Administration/Accounting:
Kayla Eastlick
KEastlick@FichtnerChevrolet.com
406-628-4618
Thanks for taking the time to read my weekly newsletter and thanks for your business!
Index of topics:
Weekly Newsletter – Contents
1) 2005 Coupe/Convertible Buildout Information & Final Buildout Date, 2006 Startup Date – REVISED 2/23/05
2) 2006 Corvette Z06 Startup Date Information - NEW
3) Corvette Price Increase
4) GM Rebates/Special Finance Rates
5) GM Employee and Supplier Eligibility
6) Corvette Pricing Revealed
7) 2006 Corvette Z06 FAQ
8) Corvette Production Issues – Constraints, Convertibles
9) Weekly Constraint/Production News
10) GM Vehicle Distribution System – Basic Explanation
1) 2005 Coupe/Convertible Buildout Information & Final Buildout Date, 2006 Startup Date - REVISED
2005 Model Year Corvette Coupe/Convertible Build-Out Constraints
79U – Millennium Yellow
Final dealer order submission approval date, March 3, 2005
Final production week, March 28, 2005
86U – Magnetic Red Metallic
Final dealer order submission approval date, March 10, 2005
Final production week, April 4, 2005
2005 Model Year Corvette Coupe/Convertible Final Production Date
Dealers will be able to consense (agree to accept allocations) for their buildout 2005 Corvette Coupes/Convertibles in July, 2005.
Allocations available during the July consensus will be available for production August 22 thru September 8, 2005.
Dealers will be able to view their final, actual allocations on July 27, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on July 28, 2005.
2006 Model Year Corvette Coupe/Convertible Startup Production Date
Dealers will be able to consense (agree to accept allocations) for 2006 Corvette Coupes/Convertibles in July, 2005.
Dealers will be able to view their final, actual allocations on July 27, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on July 28, 2005.
Allocations available during the July consensus will be available for production September 9 thru October 2, 2005.
FOR A BETTER UNDERSTANDING OF THE ALLOCATION PROCESS, PLEASE READ SECTION 10 OF THIS NEWSLETTER.
2) 2006 Corvette Z06 Startup Date Information – NEW
Chevrolet has announced the following information:
Dealers will be able to consense (agree to accept allocations) for the all new 2006 Corvette Z06 in May.
Dealers will be able to view their final, actual allocations on May 18, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on June 16, 2005.
Allocations available during the May consensus will be available for production July 25 thru July 31, 2005.
FOR A BETTER UNDERSTANDING OF THE ALLOCATION PROCESS, PLEASE READ SECTION 10 OF THIS NEWSLETTER.
3) Corvette Price Increase
Chevrolet Interim Price Increase Effective 2/4/05
Chevrolet will announce revised 2005 model year Suggested Retail prices effective with vehicles produced on or after February 4, 2005. The revised Suggested Retail prices will affect the Corvette, Equinox and Express. Dealer invoice amounts will increase accordingly. Dealer discounts remain unchanged.
Dealer price schedules will be available in GM DealerWorld under Sales &/Or F&I Tabs effective February 4, 2005.
All qualified bona fide sold retail orders entered in VOMS on or before February 3, 2005 and delivered to the original customer after that date will be price protected. These units will be invoiced at prices in effect at the date of production; however, the dealer open account will automatically be credited for the price increase once the unit has been delivered.
Generally, fleet orders are invoice price protected (i.e., bid center FBC order types, VQ orders). All other fleet orders will be price protected according to the bona fide sold retail price protection policy above. Refer to the price protection effective date on the invoice.
This pricing information is intended for use by authorized Chevrolet dealers and should not be disclosed to unauthorized persons. Chevrolet reserves the right to discontinue or change prices at any time, without written notice. All rights reserved. General Motors proprietary information to be used by authorized Chevrolet dealers, fleet operations, bailment operations, and General Motors wholesale personnel for Chevrolet vehicles. This information shall not be reproduced for or disclosed to third parties without the expressed written permission of General Motors Corporation.
It is anticipated that this pricing information will be reflected in GM AutoBook on GM Access beginning February 11, 2005.
Upon examination, the Z51 Package and the URB Navigation Radio were each increased in price by $200.
4) 2006 Corvette Z06 FAQ
2006 Corvette Z06 FAQ
Please find below answers to several of the questions we have received relative to the new Z06 Corvette followed by answers to questions that we can answer!
When will the Z06 be unveiled?
Z06 will be unveiled January 10, 2005, at the North American International Auto Show in Detroit.
When will the Z06 be available in dealerships?
The Z06 model will be available in the fourth quarter of 2005 as a 2006 model.
When is the start of production for the Z06?
Production is scheduled to begin in the third quarter of 2005.
Where will the Z06 be produced?
All Corvette models are produced in Bowling Green, KY.
How many units will be manufactured?
We have the capacity to produce around 35,000 Corvettes annually for the global markets, with 32,000 - 33,000 of them for the North American market. Z06 is expected to be 15% - 20% of the total build.
How will dealer allocation and units per dealer be determined?
Dealer allocation will be communicated in the first quarter of 2005. Please stay tuned to Chevy Launch for further details.
What additional training is required for a Certified Corvette Dealer to sell Z06?
Certification requirements will be communicated in the first quarter of 2005. Please stay tuned to Chevy Launch for further details.
What is the estimated price range for the 2006 Z06 Corvette?
The Z06 will be priced competitively in the High Sport Segment and will continue Corvette's tradition of high performance per dollar. Please stay tuned to Chevy Launch for further details.
Who is the target customer for the Z06?
As always, sports car enthusiasts of all ages. Z06 customers place a higher value on performance (sport over luxury) than the typical Corvette owner.
How large is the engine?
Specifications will be available in the first quarter of 2005. The engine will be a Gen IV V8.
What is the horsepower for the Z06?
Horsepower will be increased from today's LS6 405hp. Specifications will be available in the first quarter of 2005. Please stay tuned to Chevy Launch for further details.
What is the level of change on the Z06 versus 2005 Corvette?
This information will be available in the first quarter 2005. Please stay tuned to Chevy Launch for further details.
Does the Z06 have a removable roof?
This information will be available in the first quarter 2005. Please stay tuned to Chevy Launch for further details.
When will Fichtner Chevrolet know how many Z06s they can order?
Dealer allocation will be communicated in the first quarter of 2005. Once we receive this information we will be able to communicate such to those on our waiting list.
When will Fichtner Chevrolet begin to accept Z06 orders?
With production beginning in the third quarter I would assume that GM will open the order system to accepting 2006 orders sometime late in the 2nd quarter (Mid May to Mid June estimated). We will only commit to and accept orders in a quantity equal to what Chevrolet communicates to us as being available. We will not make promises we cannot keep!
How will Fichtner Chevrolet price units?
We will price the new Z06 at a price equal to MSRP plus $0 for dealer prep, handling, documentation, market adjustment, etc.
How many requests for Z06s has Fichtner Chevrolet received?
To date (1/11/05) I have made promises to 5 customers whose requests were made first. These requests were made in writing up to 2 years ago. We have nearly 500 requests at present. When we know the pricing and the quantity that we will have available to sell, we will email everyone. It is possible that one or more of the first 5 on our list will not place an order when it is time to place an order. At that time we will offer any unsold allocations to customers in the order in which their written requests were made to us.
5) Corvette Production Issues – Constraints, Convertibles
It’s quite obvious that the plant is having a difficult time with the production of the new 2005 C6 Corvette. Orders placed within dealer allocations in November for production in December now have production dates into March!
I can understand how impatient many of you are getting while waiting for this great car. But I believe that you would rather have a flawless and trouble free car than one that is produced with known defects!
1/25/05
To: Chevrolet Dealers
From: VSSM Order Fulfillment
Re: Corvette Constraints
Date: January 25, 2005
Following is some additional clarification on current Corvette constraints. Please consider this information when working with customers and planning your inventory:
Corvette Convertible (1YY67): The plant has begun to accelerate Convertible production. Once the Convertible has reached full production capacity, it should comprise 50% of all Corvette orders. We hope to achieve full capacity by mid-March, but are aggressively pursuing all options to improve on that date.
Power Convertible Top (CM7): Power top availability is also improving. Once again, we hope to achieve full capacity by mid-March. At full capacity we expect to build 50-60% of all Convertibles with the Power Top.
Dual Roof Option (C2L): As Convertible availability increases, availability of this option will also increase. We currently plan to free flow this option beginning on January 27.
Beige Top (35T) and Gray Top (37T): Still awaiting engineering validation on both of these tops. We hope to have more information about their availability by the end of January.
Polished Wheel (QG7): Our supplier is experiencing some throughput issues resulting in lower availability of the QG7 wheel. We are working with the supplier daily to improve this throughput. Unfortunately, availability may temporarily go down as the supplier works through some unforeseen challenges. Please ensure your orders in VOMS fit within this constraint. We hope to have more information by the end of January.
1SX Package: Various elements of this package are still awaiting engineering validation. We do not foresee this package being available prior to April at this time. This package is expected to penetrate only around 2-3%.
Navigation System (URB): Demand has exceeded forecast for this option. We are currently reviewing the potential for an increase from the Navigation System provider. We will provide you with additional information as it becomes available.
Z51 Sport Suspension Package (Z51): This option package will be constrained due to CAFE requirements. This constraint will be high over the next several weeks as we work through a backlog of orders, but should eventually improve to around 50% of total Corvette production.
2/4/05
To: All Chevrolet Dealers
From: Jim Campbell
Director – Chevrolet Car Marketing
Date: February 4, 2005
Re: 2005 Corvette Constraint Update
The 2005 Chevy Corvette continues its launch with very positive results. The press has been very favorable. In fact, the Corvette has been on the cover of over 30 magazines and has won many awards since the unveiling in January, 2004. Demand for the Corvette remains strong, and inventory is turning quickly.
Having said that, I want to acknowledge that we still have some product constraints to eliminate. Be assured that everyone from marketing, engineering, and manufacturing are diligently working to remove them as soon as possible. The goal is to balance our need for production volume with our commitment to world class quality.
The following is a status on Corvette constraints and projected resolution (subject to change):
Corvette Convertibles and Power Top Ramp-Up: Weekly, we continue to ramp-up convertible and power top production. Convertibles and the power top option are scheduled to be at ramp-up by March 21, 2005.
Corvette Convertible Beige and Gray Tops Production: When tops are in the down position, the structural force on the fabric causes wrinkles which causes the light color tops to appear dirty, even though they are not. There is a fix for this condition; however it requires some new tooling which will not be in place until approximately mid-June. Therefore, until the condition is corrected, the beige and gray top color choices will be removed from the order guide. Orders with either beige or gray tops that have already been preferenced will be returned to the "placed" tab in VOM so that you may change color and trim choices as necessary to best satisfy your needs yet still allow the car to be produced. All top colors must be changed to black. We apologize for the inconvenience caused by removing these color choices but they will remain unavailable until we are assured that the lighter top colors meet our standards.
Corvette Coupe 1SX Package Production: The current manual passenger side seat track is no longer available. There is a new manual seat track that should be available sometime in April. Once again, we apologize for having to remove this option until the new seat track is available.
QG7 Polished Wheels: Demand for the polished wheel option continues to exceed all expectation. Our wheel supplier is currently working at maximum capacity, including overtime, to meet demand. At the same time, we have been working diligently to add additional machinery and improved processes to increase polished wheel output. We hope to see the result of these improvements shortly. In the interim we would like to remind you of the availability of the new QX1 Competition Gray wheel which presents an additional way that your customers can personalize their Corvette. The QX1 wheel is not constrained.
I want to thank you for your support for the Corvette. Together we will make the sixth-generation Corvette the best Corvette ever produced.
6) Corvette Pricing Revealed
I have read a number of posts with questions relative to the pricing of a new Corvette. Often times there have been answers posted and for the most part the answers have been incorrect.
In an attempt to clear up a few misunderstandings I have prepared an analysis for your information. I am in no way saying that a dealer should sell you a car at any specific price nor am I saying that a dealer is required to offer GM Supplier or GM Employee pricing. This post is for information only.
Example:
2004 Chevrolet Corvette Coupe
Preferred Equipment Package 1SB
6 Speed Transmission
Sound System with Navigation
Polished Aluminum Wheels
Z51 Performance Handling Package
Destination Charge
MSRP = $53,060.00
Dealer Invoice = $46,921.85
(assuming dealer participates in the GM advertising program at 1%)
Net Dealer Cost = $45,354.05
The difference between retail and dealer invoice is $6138.15.
The difference between invoice and net cost is $1567.80, the 3% holdback paid the dealership.
Dealerships typically won’t sell a car below the dealer invoice as the holdback is an amount used by the dealership for overhead expenses including but not limited to floor plan interest, insurance, etc.
DEALERS ARE NOT PAID A VOLUME BONUS BASED UPON WHAT THEY SELL AS SOME FOLKS HAVE POSTED!!!
Dealerships are businesses, owned by folks who need to make a profit to stay in business. There are many other expenses to pay. If you are employed personally or if you own a business I doubt that you will work without receiving a paycheck.
Finally, if a dealer is willing to sell a new Corvette equipped per the example to a GM Supplier or GM Employee, here are those prices:
GM Supplier = $46,927.24
(GM rebates the dealer $891. So with a invoice of $46,921.85, the dealer makes $896.39 plus the holdback)
GM Employee = $44,906.45
(GM rebates the dealer $2613. So with a invoice of $46,921.85, the dealer makes $597.60 plus the holdback)
7) GM Rebates/Special Finance Rates
Summary of Incentives
Western Region. If residing outside of the Region, the incentives may vary.
2005 CHEVROLETS
2005 Model Year (05-31A-5/CWE) 2/11/05 THRU 3/31/05
Option 1
Model Rebate or APR 36/48/60/72
Aveo $750 0.0/1.9/2.9/3.9
Cavalier W/O 1SV $3000 0.0/0.0/0.0/1.9
Cavalier 1SV $0 5.9/5.9/5.9
Cobalt W/O SS $1000 0.0/1.0/2.0/3.0
Cobalt SS $0 5.9/5.9/5.9
Malibu (ALL) $2000 0.0/1.9/2.9/3.9
Impala (ALL) $2500 0.0/1.9/2.9/3.9
Monte Carlo $2500 0.0/1.9/2.9/3.9
Corvette $0 5.9/5.9/5.9
SSR $0 5.9/5.9/5.9
Colorado (ALL) $2000 0.0/1.9/2.9/4.9
Silverado 15 $2000 0.0/1.9/2.9/4.9
Silverado 25/35 W/O LLY $3000 0.0/1.9/2.9/4.9
Silveraro LLY $1000 0.0/2.9/3.9/4.9
C4500 Kodiak $2000 0.0/2.9/3.9
Avalanche $2500 0.0/1.9/2.9/4.9
Equinox $1000 0.0/2.9/3.9/4.9
Blazer $3500 0.0/0.0/0.0/1.9
Trailblazer (ALL) $2000 0.0/1.9/2.9/4.9
Tahoe $3000 0.0/1.9/2.9/4.9
Suburban $3000 0.0/1.9/2.9/4.9
Venture $3500 0.0/0.0/0.0/1.9
Uplander $1500 0.0/2.9/3.9/4.9
Astro $3000 0.0/0.0/0.0/1.9
Express $1500 0.0/2.9/3.9/4.9
CDR Code = CWE
OR
Option 2
Model Rebate and APR 36/48/60
Aveo $500 5.9/5.9/5.9/5.9
Cavalier W/O 1SV $1500 0.0/2.9/3.9/4.9
Malibu (ALL) $500 0.0/2.9/3.9/4.9
Impala (ALL) $500 0.0/2.9/3.9/4.9
Monte Carlo $500 0.0/2.9/3.9/4.9
Colorado (ALL) $500 0.0/2.9/3.9/4.9
Avalanche $500 0.0/2.9/3.9/4.9
Blazer $2000 0.0/2.9/3.9/4.9
Trailblazer (ALL) $500 0.0/2.9/3.9/4.9
Tahoe $500 0.0/2.9/3.9/4.9
Suburban $500 0.0/2.9/3.9/4.9
Venture $2000 0.0/2.9/3.9/4.9
Astro $1500 0.0/2.9/3.9/4.9
CDR Code = blank
05-31AAF GENERAL MOTORS RETAIL CONSUMER GMAC APR INCENTIVE
GENERAL MOTORS IS ANNOUNCING A RETAIL CONSUMER ALTERNATE GMAC APR
INCENTIVE PROGRAM THAT IS AVAILABLE ON SELECT ELIGIBLE NEW AND
UNUSED MODELS LISTED BELOW.
PROGRAM DETAILS:
THIS RETAIL CONSUMER GMAC APR INCENTIVE PROGRAM IS ONLY AVAILABLE
ON DELIVERIES TO RESIDENTS IN THE WESTERN REGION ONLY.
- TO DETERMINE CUSTOMER ELIGIBILITY, UTILIZE THE STATE/COUNTY/DMA
GEOGRAPHIC BOUNDARIES LISTED IN TEMPLATES 05-H AND 05-I (ADMIN.
MESSAGE NUMBERS BAI20040619 AND BAI20040620). THESE TEMPLATES
WERE SENT VIA GM MESSENGER TO ALL GENERAL MOTORS DEALERS ON
SEPTEMBER 27, 2004.
IMPORTANT PROGRAM NOTES:
- THIS PROGRAM IS NOT COMPATIBLE WITH ANY BONUS CASH OR
GMAC/NUVELL FINANCING ALLOWANCE PROGRAMS.
- CONSUMERS MAY CHOOSE AVAILABLE REGIONAL CONSUMER CASH AMOUNTS
OR TAKE THE RATE SUPPORT AS OUTLINED IN GUIDELINE NUMBER 4.
- CONSUMERS MAY NOT COMBINE RATE SUPPORT AND CONSUMER CASH REBATES.
- GMAC FINANCE RATE ALTERNATIVE CANNOT BE USED WITH SMARTLEASE
OR SMARTBUY CONTRACTS.
- THE GMAC ALTERNATIVE APR FINANCING PARAMETERS IN THIS MESSAGE
ARE "ONLY" AVAILABLE FOR QUALIFYING CUSTOMERS. DETAILS REGARDING
TIERS ARE DESCRIBED IN GUIDELINE NUMBER 4. QUESTIONS SHOULD
BE DIRECTED TO YOUR LOCAL GMAC OFFICE.
PROGRAM TIME PERIOD (DELIVERED):
FEBRUARY 1, 2005 THROUGH MARCH 31, 2005
ELIGIBLE MODELS: ALL NEW AND UNUSED 2005 MODELS LISTED BELOW:
2005 MODELS
CHEVROLET:
SILVERADO
AVALANCHE
TRAILBLAZER
TRAILBLAZER EXT
TAHOE
SUBURBAN
ALLOWANCE: 37-60 MONTH GMAC ALTERNATE APR FINANCING OF 0.0%*
* ALTERNATE GMAC APR:
TERMS 37-60 MONTHS AVAILABLE FOR S, A, B & C TIER QUALIFYING
CUSTOMERS ONLY.
05-31AAI GMAC FINANCING ALLOWANCE PROGRAM
GENERAL MOTORS IS ANNOUNCING GMAC/NUVELL FINANCING INCENTIVE.
THIS ALLOWANCE IS AVAILABLE ON ELIGIBLE DELIVERIES TO CUSTOMERS
WHO EITHER LEASE OR FINANCE THEIR VEHICLE THROUGH GMAC OR NUVELL.
SEE DETAILS BELOW.
THIS PROGRAM IS AVAILABLE ON DELIVERIES TO RESIDENTS OF THE WESTERN
REGION ONLY.
- TO DETERMINE CUSTOMER ELIGIBILITY, UTILIZE THE STATE/COUNTY/DMA
GEOGRAPHIC BOUNDARIES LISTED IN TEMPLATES 05-H AND 05-I (ADMIN.
MESSAGE NUMBERS BAI20040619 AND BAI20040620). THESE TEMPLATES
WERE SENT VIA GM MESSENGER TO ALL GENERAL MOTORS DEALERS ON
SEPTEMBER 27, 2004.
IMPORTANT PROGRAM NOTES:
- THE CUSTOMER MUST FINANCE THE VEHICLE THROUGH GMAC OR NUVELL TO BE
ELIGIBLE FOR THIS PROGRAM. THEY MAY USE EITHER A SUPPORTED OR
NON-SUPPORTED (STANDARD) SMARTLEASE/SMARTBUY OR APR PROGRAM.
- FOR GMAC SMARTLEASE/SMARTBUY CONTRACTS, THIS ALLOWANCE MUST BE
UTILIZED TO REDUCE THE CAPITALIZED COST OF THE GMAC SMARTLEASE
CONTRACT OR THE AMOUNT TO FINANCE FOR GMAC SMARTBUY CONTRACTS. THIS
ALLOWANCE MAY NOT BE OFFERED AS CASH TO THE CUSTOMER.
- FOR RETAIL PURCHASE CONTRACTS, THIS FINANCING ALLOWANCE MAY BE
ASSIGNED TO THE DEALER AS PART OF THE DOWN PAYMENT OR RECEIVED
AS A CHECK FROM THE DEALERSHIP.
FEBRUARY 1, 2005 THROUGH MARCH 31, 2005
ELIGIBLE MODELS: ALL NEW AND UNUSED 2005 MODELS LISTED BELOW:
2005 MODELS: ALLOWANCE:
CHEVROLET:
SILVERADO $1000
AVALANCHE $1000
TRAILBLAZER $1000
TRAILBLAZER EXT $1000
TAHOE $1000
SUBURBAN $1000
05-31AAD FEBRUARY/MARCH INSTANT VALUE CERTIFICATE PROGRAM
CHEVROLET IS ANNOUNCING AN INSTANT VALUE CERTIFICATE INCENTIVE PROGRAM. THE INSTANT VALUE CERTIFICATE IS GOOD TOWARDS THE PURCHASE OR LEASE OF SELECT ELIGIBLE NEW AND
UNUSED MODELS LISTED BELOW.
IMPORTANT PROGRAM NOTES:
- EACH DEALER WILL BE ASSIGNED A SPECIFIC NUMBER OF CERTIFICATES
BASED ON CRITERIA DESCRIBED ON WWW.GMPROGRAMINFO.COM. DEALERS
SHOULD GO TO WWW.GMPROGRAMINFO.COM AND CLICK ON "FEBRUARY/MARCH
INSTANT VALUE CERTIFICATE PROGRAM" TO DETERMINE THE QUANTITY OF
CERTIFICATES THAT WILL BE ASSIGNED TO THEIR PARTICULAR DEALERSHIP.
- ADDITIONAL CERTIFICATE REQUESTS WILL NOT BE HONORED.
- THE ACTUAL CERTIFICATES WILL BE AVAILABLE TO THE DEALERSHIP
VIA THE WEB. THE DEALER MUST PRINT THE CERTIFICATE FROM THE WEB.
- DEALERS MAY NOT USE OR APPLY FOR PAYMENT FOR A NUMBER OF
CERTIFICATES THAT EXCEEDS THE QUANTITY ASSIGNED TO THEIR DEALER
CODE. DEALERS WILL BE CHARGED BACK FOR ANY PAYMENTS IN EXCESS OF
THEIR ALLOCATION. ALL CERTIFICATES MUST BE RETAINED IN THE DEAL
JACKET FOR AUDIT PURPOSES.
- DEALERS MAY CHOOSE TO OFFER UP TO FOUR CERTIFICATES ON SELECT
ELIGIBLE MODELS PER PURCHASE/LEASE TO ELIGIBLE CUSTOMERS AS
DETAILED IN GUIDELINE NUMBER FOUR BELOW (EXCEPT AS NOTED BELOW).
- ON GMAC SMARTLEASE/SMARTBUY CONTRACTS, THIS ALLOWANCE MUST BE
UTILIZED TO REDUCE THE CAPITALIZED COST OF THE GMAC SMARTLEASE
CONTRACT OR THE AMOUNT TO FINANCE FOR THE GMAC SMARTBUY CONTRACT.
ON GMAC SMARTLEASE/SMARTBUY CONTRACTS, THIS ALLOWANCE MAY NOT BE
OFFERED AS CASH TO THE CUSTOMER.
PROGRAM TIME PERIOD (DELIVERED):
FEBRUARY 1, 2005 THROUGH MARCH 31, 2005
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
CHEVROLET:
SILVERADO
AVALANCHE
TRAILBLAZER
TRAILBLAZER EXT
TAHOE
SUBURBAN
ALLOWANCE: $250 PER CERTIFICATE *
* EACH CERTIFICATE IS VALUED AT $250. ONE (1), TWO (2), THREE (3)
OR FOUR (4) CERTIFICATES MAY BE USED PER ELIGIBLE DELIVERY EXCEPT
AS NOTED IN GUIDELINE NUMBERS 7 & 8 BELOW.
NOTE: DEALERS MAY NOT USE OR APPLY FOR PAYMENT FOR A
NUMBER OF CERTIFICATES THAT EXCEEDS THE QUANTITY
ASSIGNED TO THEIR DEALER CODE.
COMPATIBLE INCENTIVE/ALLOWANCE PROGRAMS:
VEHICLES DELIVERED UNDER THIS PROGRAM MAY ALSO BE ELIGIBLE FOR OTHER
PROGRAMS. SINCE NOT ALL PROGRAMS MAY BE COMBINED WITH
EACH OTHER, CONSULT THE GUIDELINES OF EACH PROGRAM IN QUESTION.
ADDITIONALLY, REGIONAL PROGRAMS ARE NOT COMPATIBLE WITH EACH OTHER.
8) GM Employee & Supplier Eligibility for 2005
To: ALL GM DEALERS
Following are the 2005 Model Year restrictions from the individual Marketing Teams for the GM Employee Purchase Program, the GM Supplier New Vehicle Purchase Program , and the GM Dealership Employee Purchase Program as of January 25, 2005:
Buick - No restrictions.
Cadillac
CTS - Very limited GMU.
XLR - 2005 models are not available for GM Employee, Supplier, or Dealership Employee Purchase.
2004 model year XLR is available for GMS.
Chevrolet Cars
Classic (old body style Malibu) - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
Corvette - Very limited GMU.
GMS and stock sales to Supplier are eligible (effective 2/1/05 convertibles are not
eligible for GMS).
Only eligible for the U6C portion of the Dealership Employee Purchase Program.
Chevrolet Trucks
Equinox - Limited GMU.
Astro Van - No cargo models in GMU.
Express Van - No cargo models in GMU.
Silverado 2500/2500HD - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed.
Silverado 3500 - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed.
Cutaway Vans - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
Kodiak (C4500) - Not available.
GMC
Safari Van - No cargo models in GMU.
Savana Van - No cargo models in GMU.
Sierra 2500/2500HD - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed.
Sierra 3500 - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed
Cutaway Vans - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
TopKick (C4500) - Not available.
Pontiac
Grand Am Sedan - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
Hummer
H2 SUT - Very limited GMU.
Saturn - No restrictions
GMS = GM Employee Plan
GMU = GM Company Car Purchase Plan
The above restrictions are subject to change at any time.
9) Weekly Constraint/Production News
Constraints are distributed based on Available Days’ Supply (ADS), Controlled Method or Percent of Allocation (POA). Dealers can use the weekly constraint wire to see the basic availability of an option. The percentages on the weekly constraint wire are estimated based on the national retail number of the constrained option divided by the amount of retail orders being allocated for the week.
Chevrolet Constraint Wire for 2/24/05
2005 CORVETTE
Corvette contraints for February 24, 2005
Constraint Code, Description, Available Nationally
00479, Corvette Convertible, 242 (DOWN 19 from last week)
00485, Corvette Coupe with 1SX Package, 0
00649, Corvette Coupe or Convertible with Z51 Package, 202 (UP 81 from last week)
Corvette Convertible with Power Top, NO CONSTRAINT!!!
Corvette Convertible with Gray or Cashmere Top = 0
All orders and order requests for Corvette Convertibles with other than a Black top have been cancelled.
Orders selected this week for dealers with allocation within constraints will be produced the week of 3/21/05 thru 3/27/05.
10) GM Vehicle Distribution System – Basic Explanation
Estimated Shipments Process
Distribution of the production schedule is based on the following:
• Controlled Allocation
• Available Days’ Supply (ADS)
• Forecast
These calculation methods are explained below.
GMVOM Timing Cycle
The Estimated Shipments process occurs each month, and is completed on Thursday of Week 1 in the GMVOM Timing Cycle.
NOTE: The Estimated Shipments and Consensus processes do NOT apply to Regional Consulting Center (RCC) dealerships. Also, constraints are distributed to RCC dealerships ONLY for constrained allocation groups.
Estimated Shipments Process Tasks
Plan Production Volumes
GM plans production volumes for each allocation group by analyzing several inputs, including marketing strategies, production estimates, production constraints, and dealers’ sales forecasts. During the analysis, GM must answer the following questions related to each of these inputs:
• Marketing strategies – How should GM position the vehicle in order to achieve maximum market penetration? Are there major advertising or incentive programs planned for specific periods during the year?
• Production estimates – How many vehicles can the plants produce for a specific period?
• Constraints – What models and options are available only in limited quantities because their production capacity is too low or their demand is too high?
• Dealers’ sales forecasts – What quantity of vehicles have the dealers determined that they can sell?
Dealers’ sales forecast quantities are an important factor in the production planning process.
Process Temporary Allocation Requests
Based on specific qualifying criteria, GM assigns temporary allocation quantities to dealers in order to supplement the normal sales planning and allocation processes.
NOTE: For information about the qualifying criteria, dealers should consult with their respective Zone Teams.
Calculate Estimated Shipments
GM calculates estimated shipments for each dealer based on the following inputs:
• The estimated production volume for the allocation group.
• A specific production period.
• A selected calculation method.
GM has three methods for calculating estimated shipments—Controlled Allocation, Available Days’ Supply (or ADS), and Forecast. The method that GM selects for calculating estimated shipments is based on:
• Whether or not the allocation group is a new vehicle line that is just being launched.
• Whether the demand for the allocation group is greater than or less than the supply.
CONTROLLED ALLOCATION CALCULATION METHOD
• When does GM use the Controlled Allocation method? GM uses the Controlled Allocation method during the launch of a new vehicle, at the time when demand is greater than supply and the marketing team wants to target a specific market. GM also uses the Controlled Allocation method when the long-term demand for a vehicle (such as the Corvette) exceeds the vehicle supply.
• How does the method work? When using Controlled Allocation, GM will typically allocate vehicles to the dealers based on a defined launch strategy or equitable distribution; for example, based on marketing strategies, GM may allocate a new pickup truck to dealerships that are located in rural areas.
AVAILABLE DAYS’ SUPPLY (ADS) CALCULATION METHOD
• When does GM use the ADS method? GM uses the ADS method the majority of the time.
• How does it work? GM allocates vehicles to the dealers with the lowest Available Days’ Supply (ADS). A dealer’s ADS is based on the dealer’s Total Availability and Daily Sales Rate for the allocation group.
• What is a dealer’s Total Availability? A dealer’s Total Availability is the quantity of vehicles of the specified allocation group that a dealer has available. This quantity is equal to the total number of vehicles in stock (on ground), in transit to your dealership, in system (orders that are being built), placed orders (orders that are ready to go to the production management system), and balance-to-go allocation (the dealer’s final allocation units that have NOT been submitted as preliminary orders or selected as placed orders for the current production period).
• What is a dealer’s Daily Sales Rate? A dealer’s Daily Sales Rate is the average number of units sold per day over a sales period of 1, 2, 3, or 12 months. GM determines which sales period to use for each allocation group. (GM uses 12 months only during the start-up and build-out periods for an allocation group.)
• What is a dealer’s ADS? A dealer’s ADS is equal to the dealer’s Total Availability divided by the dealer’s Daily Sales Rate. (For example, if a dealer’s Total Availability is 30 and its Daily Sales Rate is 2, then its ADS is 15.)
ADS Example Step 1 – Calculate Total Availability
The Allocation application calculates the total availability for each dealer after receiving the availability data. Remember that Total Availability includes balance-to-go.
ADS Example Step 2 – Calculate Daily Sales Rate
The Allocation application calculates the daily sales rate for each dealer by determining the dealer’s total sales for a defined sales period of 30, 60, 91, or 365 days and dividing the dealer’s total sales by the number of days in the sales period. (GM decides which sales period to use for each allocation group.)
ADS Example Step 3 – Calculate ADS
The Allocation application calculates each dealer’s ADS by dividing the total availability by the daily sales rate.
ADS Example Step 4 – Assign First Unit Based on ADS
GM determines which dealer has the lowest ADS, and assigns a unit to that dealer.
In this example, Dealer D gets an additional unit, making its total availability change from 2 to 3. The dealer’s ADS is also recalculated, and changes from 7 to 11. Remember, the ADS is calculated by dividing the total availability by the daily sales rate—in this example, 3 divided by 0.27 is 11.11 units (which is rounded down to 11).
ADS Example Step 5 – Assign Next Unit Based on ADS
GM determines which dealer has the lowest ADS, and assigns a unit to that dealer.
In this example, Dealer C gets an additional unit, making its total availability change from 3 to 4. The dealer’s ADS is also recalculated, and changes from 10 to 13. Remember, the ADS is calculated by dividing the total availability by the daily sales rate—in this example, 4 divided by 0.30 is 13.33 units (which is rounded down to 13).
At this point, only two units have been allocated; however, this step is repeated until all available units of an allocation group are allocated. Each time this step is repeated, the dealer with the lowest ADS earns a unit.
ADS Example Step 6 – Determine National ADS Bar
When the last available unit in an allocation group is allocated, the ADS of the dealer who received the last unit is called the “National ADS Bar.” The National ADS Bar is the allocation cutoff point.
Dealers that had a beginning ADS that was less than the National ADS Bar received at least one unit for the production period. Dealers that had a beginning ADS that was greater than the National ADS Bar received no units for the production period.
For example, if the ADS of the last dealer to receive a unit is 20, then the dealers who had a beginning ADS that was less than 20 would have received at least one unit for the production period. Dealers who had an ADS that was greater than 20 would NOT have received any units for the production period.
FORECAST CALCULATION METHOD
• When does GM use the Forecast method? GM uses the Forecast method when calculating estimated shipments for the sales outlook period (or month). The sales outlook period is shown in the last column of the table at the top of the Estimated Shipments report. The column heading is “Estimated Shipments [Month/Year].”
• How does the method work? GM calculates estimated shipments by using each dealer’s Sales History for the allocation group.
• What is a dealer’s Sales History? A dealer’s Sales History is the number of vehicles that the dealer sold during the same production period one year ago, or the average number of vehicles that the dealer sold during the same production period one and two years ago or one, two, and three years ago. (GM typically uses one year for vehicles that have a high production volume. GM may use two or three years for vehicles that have a lower production volume.)
Forecast Example Step 1 – Calculate Sales History
The Allocation application calculates each dealer’s 3-year sales history for the allocation group and production period. The application adds all dealers’ 3-year sales history values in order to get the total (or national) 3-year sales history for the allocation group and production period.
Forecast Example Step 2 – Calculate Average Actual Sales
The Allocation application calculates each dealer’s average actual sales by dividing the 3-year sales history by 3. The application adds all dealers’ average actual sales values in order to get the total (or national) average actual sales for the allocation group and production period.
Forecast Example Step 3 – Calculate the % to National Value
The Allocation application divides each dealer’s average actual sales value by the total (or national) average actual sales value in order to get a % to National value. (In this example, the total average actual sales value is 45.) The total of all dealers’ % to National values must equal 100 percent.
Forecast Example Step 4 – Calculate Estimated Shipments
The Allocation application multiplies each dealer’s % to National value by the planned production volume for the allocation group and production period. (In this example, the planned production volume is 51.) The resulting value is the dealer’s estimated shipments quantity for the allocation group and period. The total of all dealers’ estimated shipments values must equal the planned production volume.
Send Quantities to Dealers
After GM calculates the estimated shipments quantities, they are sent to Order Workbench where dealers may review them as input for their sales planning and forecasting activities.
How can a dealership get more product if its sales are better than expected?
When a dealership's sales are better than expected, the dealership and its Area Sales Manager can get more product by doing the following:
Increase the dealership's production consensus quantity for the next production period.
Increase the dealership's desired allocation quantity in the weekly Order Vehicles process.
Look for trade or purchase opportunities by using the Locate Vehicles screens in Order Workbench.
What is the Available Days' Supply (ADS) formula?
In the Estimated Shipments process, the Available Days' Supply (ADS) formula is used in order to distribute available production volumes fairly and responsively to dealers.
In the Constraints Distribution process, the ADS formula is used in order to distribute available constraints fairly and responsively to dealers.
How do I determine which vehicle constraints were distributed to my dealership?
You can determine which vehicle constraints were distributed to your dealership by accessing the View My Allocation Summary screen in the Order Vehicles section of Order Workbench.
What is the difference between a preliminary order and a placed order?
A preliminary order is a vehicle order that a dealer configures and submits to GM for selection during the Vehicle Order Selection process.
A placed order is a preliminary order that was submitted to GM by a dealer and was selected to be built. A placed order is any order that is at Event Code 2000 (Accepted by GM), but has not reached Event Code 2500 (Preferenced).
How does the Vehicle Order Selection batch process place my dealership's preliminary orders?
The Vehicle Order Selection batch process places your dealership's preliminary orders based on the following factors:
The priority code that your dealership assigned to each preliminary order.
Your dealership's final allocation quantity for the target production period (TPP).
Your dealership's desired allocation quantity for the TPP (if additional allocation is available).
Your dealership's distributed constraints quantities for the TPP.
How can I tell whether a preliminary order has been placed?
When a preliminary order is placed, the vehicle order event code changes to 2000 (Accepted by GM). You can view the current event code for an order by accessing one of the following screens:
Order Detail screen in the Manage Inventory section
Preliminary Order/Stored Configuration Detail screen in the Order Vehicles section
How much time do I have in order to change or replace placed orders?
For a specific target production period (TPP), you can change or replace placed orders until 9:00 PM Eastern Time on Tuesday.
Can I change (or replace) a placed order that is based on a national pattern order?
You can change both the model and content of a placed order that is based on a national pattern order; however, the model must be within the same allocation group as the national pattern order and the model and content must be within any applicable constraints.
What happens if I try to add a constrained or restricted option onto a placed order?
The system will reject your change, and the placed order will revert to its original content.
How can I track a sold order for a customer?
You can track a sold order for a customer by using the Vehicle Order Inquiry screen. You can access this screen by clicking the Go to Vehicle Order Inquiry link on the Manage Inventory drop-down menu.
Thanks for taking the time to read my weekly newsletter and thanks for your business!
This week’s news includes:
1) Latest Production Constraints
2) Final 2005 Production Date – UPDATED 2/23/05
3) Initial 2006 Coupe/Convertible Production Date – UPDATED 2/23/05
4) Initial 2006 Z06 Production Date – NEW 2/23/05
5) Early Build Out Colors 2006 Coupe/Convertible – UPDATED 2/23/05
Two weeks ago I announced that due to time constraints and the fact that we have some very talented gentlemen working for us, that I would was significantly reducing the length and content of my newsletter.
I think that Dennis and Bob are doing a great job!
I have asked Bob to update his newsletter with a COMPLETE listing of all of the C5 and C6 items that we offer including his special pricing and photos.
I have also asked Bob to update his parts ordering website with photos, and prices for all of the new items that we are offering so that it’s easy to do business with us!!!
Check out their latest news again this week.
Please let each of us know what other information you would like to see published.
POST A QUESTION TO EACH OF OUR FORUMS AND WE WILL DO OUR BEST TO GIVE YOU AN ANSWER!!!
GM Protection Plan News and FAQ:
Dennis Fichtner will be publishing a weekly newsletter with details on the GM Protection Plan. He will include a new “frequently asked question” each week. Look for this great addition soon. Finally, please remember that you won’t pay sales tax on a plan purchased from us.
Parts, Accessories and Service News:
Robert Wendorff will be publishing a weekly newsletter with details on all of our parts and accessories offerings. Watch for a weekly special as well as each week he will pick one item to sell at a deep discount. Note that we aren’t selling parts at a loss and then adding an exhorbidant amount for shipping and handling. Further, note that there isn’t any sales tax in Montana thus saving you more!
Fichtner Chevrolet personnel directory:
GM Protection Plans and New Car/Truck Sales:
Dennis Fichtner, Business Manager
gmpp@fichtnerchevrolet.com
406-628-4618 Ext 105
Corvette Sales and Advice
Ken Fichtner, General Manager
kenfichtner@fichtnerchevrolet.com
406-628-4618 Ext 103
Parts:
Robert Wendorff, Parts Manager
Parts@FichtnerChevrolet.com
406-628-4121
John Thomas Dorsey, Parts Specialist
Parts@FichtnerChevrolet.com
406-628-4121
Service:
John Ingham, Service Manager
Service@FichtnerChevrolet.com
406-628-4618
Office Administration/Accounting:
Kayla Eastlick
KEastlick@FichtnerChevrolet.com
406-628-4618
Thanks for taking the time to read my weekly newsletter and thanks for your business!
Index of topics:
Weekly Newsletter – Contents
1) 2005 Coupe/Convertible Buildout Information & Final Buildout Date, 2006 Startup Date – REVISED 2/23/05
2) 2006 Corvette Z06 Startup Date Information - NEW
3) Corvette Price Increase
4) GM Rebates/Special Finance Rates
5) GM Employee and Supplier Eligibility
6) Corvette Pricing Revealed
7) 2006 Corvette Z06 FAQ
8) Corvette Production Issues – Constraints, Convertibles
9) Weekly Constraint/Production News
10) GM Vehicle Distribution System – Basic Explanation
1) 2005 Coupe/Convertible Buildout Information & Final Buildout Date, 2006 Startup Date - REVISED
2005 Model Year Corvette Coupe/Convertible Build-Out Constraints
79U – Millennium Yellow
Final dealer order submission approval date, March 3, 2005
Final production week, March 28, 2005
86U – Magnetic Red Metallic
Final dealer order submission approval date, March 10, 2005
Final production week, April 4, 2005
2005 Model Year Corvette Coupe/Convertible Final Production Date
Dealers will be able to consense (agree to accept allocations) for their buildout 2005 Corvette Coupes/Convertibles in July, 2005.
Allocations available during the July consensus will be available for production August 22 thru September 8, 2005.
Dealers will be able to view their final, actual allocations on July 27, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on July 28, 2005.
2006 Model Year Corvette Coupe/Convertible Startup Production Date
Dealers will be able to consense (agree to accept allocations) for 2006 Corvette Coupes/Convertibles in July, 2005.
Dealers will be able to view their final, actual allocations on July 27, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on July 28, 2005.
Allocations available during the July consensus will be available for production September 9 thru October 2, 2005.
FOR A BETTER UNDERSTANDING OF THE ALLOCATION PROCESS, PLEASE READ SECTION 10 OF THIS NEWSLETTER.
2) 2006 Corvette Z06 Startup Date Information – NEW
Chevrolet has announced the following information:
Dealers will be able to consense (agree to accept allocations) for the all new 2006 Corvette Z06 in May.
Dealers will be able to view their final, actual allocations on May 18, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on June 16, 2005.
Allocations available during the May consensus will be available for production July 25 thru July 31, 2005.
FOR A BETTER UNDERSTANDING OF THE ALLOCATION PROCESS, PLEASE READ SECTION 10 OF THIS NEWSLETTER.
3) Corvette Price Increase
Chevrolet Interim Price Increase Effective 2/4/05
Chevrolet will announce revised 2005 model year Suggested Retail prices effective with vehicles produced on or after February 4, 2005. The revised Suggested Retail prices will affect the Corvette, Equinox and Express. Dealer invoice amounts will increase accordingly. Dealer discounts remain unchanged.
Dealer price schedules will be available in GM DealerWorld under Sales &/Or F&I Tabs effective February 4, 2005.
All qualified bona fide sold retail orders entered in VOMS on or before February 3, 2005 and delivered to the original customer after that date will be price protected. These units will be invoiced at prices in effect at the date of production; however, the dealer open account will automatically be credited for the price increase once the unit has been delivered.
Generally, fleet orders are invoice price protected (i.e., bid center FBC order types, VQ orders). All other fleet orders will be price protected according to the bona fide sold retail price protection policy above. Refer to the price protection effective date on the invoice.
This pricing information is intended for use by authorized Chevrolet dealers and should not be disclosed to unauthorized persons. Chevrolet reserves the right to discontinue or change prices at any time, without written notice. All rights reserved. General Motors proprietary information to be used by authorized Chevrolet dealers, fleet operations, bailment operations, and General Motors wholesale personnel for Chevrolet vehicles. This information shall not be reproduced for or disclosed to third parties without the expressed written permission of General Motors Corporation.
It is anticipated that this pricing information will be reflected in GM AutoBook on GM Access beginning February 11, 2005.
Upon examination, the Z51 Package and the URB Navigation Radio were each increased in price by $200.
4) 2006 Corvette Z06 FAQ
2006 Corvette Z06 FAQ
Please find below answers to several of the questions we have received relative to the new Z06 Corvette followed by answers to questions that we can answer!
When will the Z06 be unveiled?
Z06 will be unveiled January 10, 2005, at the North American International Auto Show in Detroit.
When will the Z06 be available in dealerships?
The Z06 model will be available in the fourth quarter of 2005 as a 2006 model.
When is the start of production for the Z06?
Production is scheduled to begin in the third quarter of 2005.
Where will the Z06 be produced?
All Corvette models are produced in Bowling Green, KY.
How many units will be manufactured?
We have the capacity to produce around 35,000 Corvettes annually for the global markets, with 32,000 - 33,000 of them for the North American market. Z06 is expected to be 15% - 20% of the total build.
How will dealer allocation and units per dealer be determined?
Dealer allocation will be communicated in the first quarter of 2005. Please stay tuned to Chevy Launch for further details.
What additional training is required for a Certified Corvette Dealer to sell Z06?
Certification requirements will be communicated in the first quarter of 2005. Please stay tuned to Chevy Launch for further details.
What is the estimated price range for the 2006 Z06 Corvette?
The Z06 will be priced competitively in the High Sport Segment and will continue Corvette's tradition of high performance per dollar. Please stay tuned to Chevy Launch for further details.
Who is the target customer for the Z06?
As always, sports car enthusiasts of all ages. Z06 customers place a higher value on performance (sport over luxury) than the typical Corvette owner.
How large is the engine?
Specifications will be available in the first quarter of 2005. The engine will be a Gen IV V8.
What is the horsepower for the Z06?
Horsepower will be increased from today's LS6 405hp. Specifications will be available in the first quarter of 2005. Please stay tuned to Chevy Launch for further details.
What is the level of change on the Z06 versus 2005 Corvette?
This information will be available in the first quarter 2005. Please stay tuned to Chevy Launch for further details.
Does the Z06 have a removable roof?
This information will be available in the first quarter 2005. Please stay tuned to Chevy Launch for further details.
When will Fichtner Chevrolet know how many Z06s they can order?
Dealer allocation will be communicated in the first quarter of 2005. Once we receive this information we will be able to communicate such to those on our waiting list.
When will Fichtner Chevrolet begin to accept Z06 orders?
With production beginning in the third quarter I would assume that GM will open the order system to accepting 2006 orders sometime late in the 2nd quarter (Mid May to Mid June estimated). We will only commit to and accept orders in a quantity equal to what Chevrolet communicates to us as being available. We will not make promises we cannot keep!
How will Fichtner Chevrolet price units?
We will price the new Z06 at a price equal to MSRP plus $0 for dealer prep, handling, documentation, market adjustment, etc.
How many requests for Z06s has Fichtner Chevrolet received?
To date (1/11/05) I have made promises to 5 customers whose requests were made first. These requests were made in writing up to 2 years ago. We have nearly 500 requests at present. When we know the pricing and the quantity that we will have available to sell, we will email everyone. It is possible that one or more of the first 5 on our list will not place an order when it is time to place an order. At that time we will offer any unsold allocations to customers in the order in which their written requests were made to us.
5) Corvette Production Issues – Constraints, Convertibles
It’s quite obvious that the plant is having a difficult time with the production of the new 2005 C6 Corvette. Orders placed within dealer allocations in November for production in December now have production dates into March!
I can understand how impatient many of you are getting while waiting for this great car. But I believe that you would rather have a flawless and trouble free car than one that is produced with known defects!
1/25/05
To: Chevrolet Dealers
From: VSSM Order Fulfillment
Re: Corvette Constraints
Date: January 25, 2005
Following is some additional clarification on current Corvette constraints. Please consider this information when working with customers and planning your inventory:
Corvette Convertible (1YY67): The plant has begun to accelerate Convertible production. Once the Convertible has reached full production capacity, it should comprise 50% of all Corvette orders. We hope to achieve full capacity by mid-March, but are aggressively pursuing all options to improve on that date.
Power Convertible Top (CM7): Power top availability is also improving. Once again, we hope to achieve full capacity by mid-March. At full capacity we expect to build 50-60% of all Convertibles with the Power Top.
Dual Roof Option (C2L): As Convertible availability increases, availability of this option will also increase. We currently plan to free flow this option beginning on January 27.
Beige Top (35T) and Gray Top (37T): Still awaiting engineering validation on both of these tops. We hope to have more information about their availability by the end of January.
Polished Wheel (QG7): Our supplier is experiencing some throughput issues resulting in lower availability of the QG7 wheel. We are working with the supplier daily to improve this throughput. Unfortunately, availability may temporarily go down as the supplier works through some unforeseen challenges. Please ensure your orders in VOMS fit within this constraint. We hope to have more information by the end of January.
1SX Package: Various elements of this package are still awaiting engineering validation. We do not foresee this package being available prior to April at this time. This package is expected to penetrate only around 2-3%.
Navigation System (URB): Demand has exceeded forecast for this option. We are currently reviewing the potential for an increase from the Navigation System provider. We will provide you with additional information as it becomes available.
Z51 Sport Suspension Package (Z51): This option package will be constrained due to CAFE requirements. This constraint will be high over the next several weeks as we work through a backlog of orders, but should eventually improve to around 50% of total Corvette production.
2/4/05
To: All Chevrolet Dealers
From: Jim Campbell
Director – Chevrolet Car Marketing
Date: February 4, 2005
Re: 2005 Corvette Constraint Update
The 2005 Chevy Corvette continues its launch with very positive results. The press has been very favorable. In fact, the Corvette has been on the cover of over 30 magazines and has won many awards since the unveiling in January, 2004. Demand for the Corvette remains strong, and inventory is turning quickly.
Having said that, I want to acknowledge that we still have some product constraints to eliminate. Be assured that everyone from marketing, engineering, and manufacturing are diligently working to remove them as soon as possible. The goal is to balance our need for production volume with our commitment to world class quality.
The following is a status on Corvette constraints and projected resolution (subject to change):
Corvette Convertibles and Power Top Ramp-Up: Weekly, we continue to ramp-up convertible and power top production. Convertibles and the power top option are scheduled to be at ramp-up by March 21, 2005.
Corvette Convertible Beige and Gray Tops Production: When tops are in the down position, the structural force on the fabric causes wrinkles which causes the light color tops to appear dirty, even though they are not. There is a fix for this condition; however it requires some new tooling which will not be in place until approximately mid-June. Therefore, until the condition is corrected, the beige and gray top color choices will be removed from the order guide. Orders with either beige or gray tops that have already been preferenced will be returned to the "placed" tab in VOM so that you may change color and trim choices as necessary to best satisfy your needs yet still allow the car to be produced. All top colors must be changed to black. We apologize for the inconvenience caused by removing these color choices but they will remain unavailable until we are assured that the lighter top colors meet our standards.
Corvette Coupe 1SX Package Production: The current manual passenger side seat track is no longer available. There is a new manual seat track that should be available sometime in April. Once again, we apologize for having to remove this option until the new seat track is available.
QG7 Polished Wheels: Demand for the polished wheel option continues to exceed all expectation. Our wheel supplier is currently working at maximum capacity, including overtime, to meet demand. At the same time, we have been working diligently to add additional machinery and improved processes to increase polished wheel output. We hope to see the result of these improvements shortly. In the interim we would like to remind you of the availability of the new QX1 Competition Gray wheel which presents an additional way that your customers can personalize their Corvette. The QX1 wheel is not constrained.
I want to thank you for your support for the Corvette. Together we will make the sixth-generation Corvette the best Corvette ever produced.
6) Corvette Pricing Revealed
I have read a number of posts with questions relative to the pricing of a new Corvette. Often times there have been answers posted and for the most part the answers have been incorrect.
In an attempt to clear up a few misunderstandings I have prepared an analysis for your information. I am in no way saying that a dealer should sell you a car at any specific price nor am I saying that a dealer is required to offer GM Supplier or GM Employee pricing. This post is for information only.
Example:
2004 Chevrolet Corvette Coupe
Preferred Equipment Package 1SB
6 Speed Transmission
Sound System with Navigation
Polished Aluminum Wheels
Z51 Performance Handling Package
Destination Charge
MSRP = $53,060.00
Dealer Invoice = $46,921.85
(assuming dealer participates in the GM advertising program at 1%)
Net Dealer Cost = $45,354.05
The difference between retail and dealer invoice is $6138.15.
The difference between invoice and net cost is $1567.80, the 3% holdback paid the dealership.
Dealerships typically won’t sell a car below the dealer invoice as the holdback is an amount used by the dealership for overhead expenses including but not limited to floor plan interest, insurance, etc.
DEALERS ARE NOT PAID A VOLUME BONUS BASED UPON WHAT THEY SELL AS SOME FOLKS HAVE POSTED!!!
Dealerships are businesses, owned by folks who need to make a profit to stay in business. There are many other expenses to pay. If you are employed personally or if you own a business I doubt that you will work without receiving a paycheck.
Finally, if a dealer is willing to sell a new Corvette equipped per the example to a GM Supplier or GM Employee, here are those prices:
GM Supplier = $46,927.24
(GM rebates the dealer $891. So with a invoice of $46,921.85, the dealer makes $896.39 plus the holdback)
GM Employee = $44,906.45
(GM rebates the dealer $2613. So with a invoice of $46,921.85, the dealer makes $597.60 plus the holdback)
7) GM Rebates/Special Finance Rates
Summary of Incentives
Western Region. If residing outside of the Region, the incentives may vary.
2005 CHEVROLETS
2005 Model Year (05-31A-5/CWE) 2/11/05 THRU 3/31/05
Option 1
Model Rebate or APR 36/48/60/72
Aveo $750 0.0/1.9/2.9/3.9
Cavalier W/O 1SV $3000 0.0/0.0/0.0/1.9
Cavalier 1SV $0 5.9/5.9/5.9
Cobalt W/O SS $1000 0.0/1.0/2.0/3.0
Cobalt SS $0 5.9/5.9/5.9
Malibu (ALL) $2000 0.0/1.9/2.9/3.9
Impala (ALL) $2500 0.0/1.9/2.9/3.9
Monte Carlo $2500 0.0/1.9/2.9/3.9
Corvette $0 5.9/5.9/5.9
SSR $0 5.9/5.9/5.9
Colorado (ALL) $2000 0.0/1.9/2.9/4.9
Silverado 15 $2000 0.0/1.9/2.9/4.9
Silverado 25/35 W/O LLY $3000 0.0/1.9/2.9/4.9
Silveraro LLY $1000 0.0/2.9/3.9/4.9
C4500 Kodiak $2000 0.0/2.9/3.9
Avalanche $2500 0.0/1.9/2.9/4.9
Equinox $1000 0.0/2.9/3.9/4.9
Blazer $3500 0.0/0.0/0.0/1.9
Trailblazer (ALL) $2000 0.0/1.9/2.9/4.9
Tahoe $3000 0.0/1.9/2.9/4.9
Suburban $3000 0.0/1.9/2.9/4.9
Venture $3500 0.0/0.0/0.0/1.9
Uplander $1500 0.0/2.9/3.9/4.9
Astro $3000 0.0/0.0/0.0/1.9
Express $1500 0.0/2.9/3.9/4.9
CDR Code = CWE
OR
Option 2
Model Rebate and APR 36/48/60
Aveo $500 5.9/5.9/5.9/5.9
Cavalier W/O 1SV $1500 0.0/2.9/3.9/4.9
Malibu (ALL) $500 0.0/2.9/3.9/4.9
Impala (ALL) $500 0.0/2.9/3.9/4.9
Monte Carlo $500 0.0/2.9/3.9/4.9
Colorado (ALL) $500 0.0/2.9/3.9/4.9
Avalanche $500 0.0/2.9/3.9/4.9
Blazer $2000 0.0/2.9/3.9/4.9
Trailblazer (ALL) $500 0.0/2.9/3.9/4.9
Tahoe $500 0.0/2.9/3.9/4.9
Suburban $500 0.0/2.9/3.9/4.9
Venture $2000 0.0/2.9/3.9/4.9
Astro $1500 0.0/2.9/3.9/4.9
CDR Code = blank
05-31AAF GENERAL MOTORS RETAIL CONSUMER GMAC APR INCENTIVE
GENERAL MOTORS IS ANNOUNCING A RETAIL CONSUMER ALTERNATE GMAC APR
INCENTIVE PROGRAM THAT IS AVAILABLE ON SELECT ELIGIBLE NEW AND
UNUSED MODELS LISTED BELOW.
PROGRAM DETAILS:
THIS RETAIL CONSUMER GMAC APR INCENTIVE PROGRAM IS ONLY AVAILABLE
ON DELIVERIES TO RESIDENTS IN THE WESTERN REGION ONLY.
- TO DETERMINE CUSTOMER ELIGIBILITY, UTILIZE THE STATE/COUNTY/DMA
GEOGRAPHIC BOUNDARIES LISTED IN TEMPLATES 05-H AND 05-I (ADMIN.
MESSAGE NUMBERS BAI20040619 AND BAI20040620). THESE TEMPLATES
WERE SENT VIA GM MESSENGER TO ALL GENERAL MOTORS DEALERS ON
SEPTEMBER 27, 2004.
IMPORTANT PROGRAM NOTES:
- THIS PROGRAM IS NOT COMPATIBLE WITH ANY BONUS CASH OR
GMAC/NUVELL FINANCING ALLOWANCE PROGRAMS.
- CONSUMERS MAY CHOOSE AVAILABLE REGIONAL CONSUMER CASH AMOUNTS
OR TAKE THE RATE SUPPORT AS OUTLINED IN GUIDELINE NUMBER 4.
- CONSUMERS MAY NOT COMBINE RATE SUPPORT AND CONSUMER CASH REBATES.
- GMAC FINANCE RATE ALTERNATIVE CANNOT BE USED WITH SMARTLEASE
OR SMARTBUY CONTRACTS.
- THE GMAC ALTERNATIVE APR FINANCING PARAMETERS IN THIS MESSAGE
ARE "ONLY" AVAILABLE FOR QUALIFYING CUSTOMERS. DETAILS REGARDING
TIERS ARE DESCRIBED IN GUIDELINE NUMBER 4. QUESTIONS SHOULD
BE DIRECTED TO YOUR LOCAL GMAC OFFICE.
PROGRAM TIME PERIOD (DELIVERED):
FEBRUARY 1, 2005 THROUGH MARCH 31, 2005
ELIGIBLE MODELS: ALL NEW AND UNUSED 2005 MODELS LISTED BELOW:
2005 MODELS
CHEVROLET:
SILVERADO
AVALANCHE
TRAILBLAZER
TRAILBLAZER EXT
TAHOE
SUBURBAN
ALLOWANCE: 37-60 MONTH GMAC ALTERNATE APR FINANCING OF 0.0%*
* ALTERNATE GMAC APR:
TERMS 37-60 MONTHS AVAILABLE FOR S, A, B & C TIER QUALIFYING
CUSTOMERS ONLY.
05-31AAI GMAC FINANCING ALLOWANCE PROGRAM
GENERAL MOTORS IS ANNOUNCING GMAC/NUVELL FINANCING INCENTIVE.
THIS ALLOWANCE IS AVAILABLE ON ELIGIBLE DELIVERIES TO CUSTOMERS
WHO EITHER LEASE OR FINANCE THEIR VEHICLE THROUGH GMAC OR NUVELL.
SEE DETAILS BELOW.
THIS PROGRAM IS AVAILABLE ON DELIVERIES TO RESIDENTS OF THE WESTERN
REGION ONLY.
- TO DETERMINE CUSTOMER ELIGIBILITY, UTILIZE THE STATE/COUNTY/DMA
GEOGRAPHIC BOUNDARIES LISTED IN TEMPLATES 05-H AND 05-I (ADMIN.
MESSAGE NUMBERS BAI20040619 AND BAI20040620). THESE TEMPLATES
WERE SENT VIA GM MESSENGER TO ALL GENERAL MOTORS DEALERS ON
SEPTEMBER 27, 2004.
IMPORTANT PROGRAM NOTES:
- THE CUSTOMER MUST FINANCE THE VEHICLE THROUGH GMAC OR NUVELL TO BE
ELIGIBLE FOR THIS PROGRAM. THEY MAY USE EITHER A SUPPORTED OR
NON-SUPPORTED (STANDARD) SMARTLEASE/SMARTBUY OR APR PROGRAM.
- FOR GMAC SMARTLEASE/SMARTBUY CONTRACTS, THIS ALLOWANCE MUST BE
UTILIZED TO REDUCE THE CAPITALIZED COST OF THE GMAC SMARTLEASE
CONTRACT OR THE AMOUNT TO FINANCE FOR GMAC SMARTBUY CONTRACTS. THIS
ALLOWANCE MAY NOT BE OFFERED AS CASH TO THE CUSTOMER.
- FOR RETAIL PURCHASE CONTRACTS, THIS FINANCING ALLOWANCE MAY BE
ASSIGNED TO THE DEALER AS PART OF THE DOWN PAYMENT OR RECEIVED
AS A CHECK FROM THE DEALERSHIP.
FEBRUARY 1, 2005 THROUGH MARCH 31, 2005
ELIGIBLE MODELS: ALL NEW AND UNUSED 2005 MODELS LISTED BELOW:
2005 MODELS: ALLOWANCE:
CHEVROLET:
SILVERADO $1000
AVALANCHE $1000
TRAILBLAZER $1000
TRAILBLAZER EXT $1000
TAHOE $1000
SUBURBAN $1000
05-31AAD FEBRUARY/MARCH INSTANT VALUE CERTIFICATE PROGRAM
CHEVROLET IS ANNOUNCING AN INSTANT VALUE CERTIFICATE INCENTIVE PROGRAM. THE INSTANT VALUE CERTIFICATE IS GOOD TOWARDS THE PURCHASE OR LEASE OF SELECT ELIGIBLE NEW AND
UNUSED MODELS LISTED BELOW.
IMPORTANT PROGRAM NOTES:
- EACH DEALER WILL BE ASSIGNED A SPECIFIC NUMBER OF CERTIFICATES
BASED ON CRITERIA DESCRIBED ON WWW.GMPROGRAMINFO.COM. DEALERS
SHOULD GO TO WWW.GMPROGRAMINFO.COM AND CLICK ON "FEBRUARY/MARCH
INSTANT VALUE CERTIFICATE PROGRAM" TO DETERMINE THE QUANTITY OF
CERTIFICATES THAT WILL BE ASSIGNED TO THEIR PARTICULAR DEALERSHIP.
- ADDITIONAL CERTIFICATE REQUESTS WILL NOT BE HONORED.
- THE ACTUAL CERTIFICATES WILL BE AVAILABLE TO THE DEALERSHIP
VIA THE WEB. THE DEALER MUST PRINT THE CERTIFICATE FROM THE WEB.
- DEALERS MAY NOT USE OR APPLY FOR PAYMENT FOR A NUMBER OF
CERTIFICATES THAT EXCEEDS THE QUANTITY ASSIGNED TO THEIR DEALER
CODE. DEALERS WILL BE CHARGED BACK FOR ANY PAYMENTS IN EXCESS OF
THEIR ALLOCATION. ALL CERTIFICATES MUST BE RETAINED IN THE DEAL
JACKET FOR AUDIT PURPOSES.
- DEALERS MAY CHOOSE TO OFFER UP TO FOUR CERTIFICATES ON SELECT
ELIGIBLE MODELS PER PURCHASE/LEASE TO ELIGIBLE CUSTOMERS AS
DETAILED IN GUIDELINE NUMBER FOUR BELOW (EXCEPT AS NOTED BELOW).
- ON GMAC SMARTLEASE/SMARTBUY CONTRACTS, THIS ALLOWANCE MUST BE
UTILIZED TO REDUCE THE CAPITALIZED COST OF THE GMAC SMARTLEASE
CONTRACT OR THE AMOUNT TO FINANCE FOR THE GMAC SMARTBUY CONTRACT.
ON GMAC SMARTLEASE/SMARTBUY CONTRACTS, THIS ALLOWANCE MAY NOT BE
OFFERED AS CASH TO THE CUSTOMER.
PROGRAM TIME PERIOD (DELIVERED):
FEBRUARY 1, 2005 THROUGH MARCH 31, 2005
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
CHEVROLET:
SILVERADO
AVALANCHE
TRAILBLAZER
TRAILBLAZER EXT
TAHOE
SUBURBAN
ALLOWANCE: $250 PER CERTIFICATE *
* EACH CERTIFICATE IS VALUED AT $250. ONE (1), TWO (2), THREE (3)
OR FOUR (4) CERTIFICATES MAY BE USED PER ELIGIBLE DELIVERY EXCEPT
AS NOTED IN GUIDELINE NUMBERS 7 & 8 BELOW.
NOTE: DEALERS MAY NOT USE OR APPLY FOR PAYMENT FOR A
NUMBER OF CERTIFICATES THAT EXCEEDS THE QUANTITY
ASSIGNED TO THEIR DEALER CODE.
COMPATIBLE INCENTIVE/ALLOWANCE PROGRAMS:
VEHICLES DELIVERED UNDER THIS PROGRAM MAY ALSO BE ELIGIBLE FOR OTHER
PROGRAMS. SINCE NOT ALL PROGRAMS MAY BE COMBINED WITH
EACH OTHER, CONSULT THE GUIDELINES OF EACH PROGRAM IN QUESTION.
ADDITIONALLY, REGIONAL PROGRAMS ARE NOT COMPATIBLE WITH EACH OTHER.
8) GM Employee & Supplier Eligibility for 2005
To: ALL GM DEALERS
Following are the 2005 Model Year restrictions from the individual Marketing Teams for the GM Employee Purchase Program, the GM Supplier New Vehicle Purchase Program , and the GM Dealership Employee Purchase Program as of January 25, 2005:
Buick - No restrictions.
Cadillac
CTS - Very limited GMU.
XLR - 2005 models are not available for GM Employee, Supplier, or Dealership Employee Purchase.
2004 model year XLR is available for GMS.
Chevrolet Cars
Classic (old body style Malibu) - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
Corvette - Very limited GMU.
GMS and stock sales to Supplier are eligible (effective 2/1/05 convertibles are not
eligible for GMS).
Only eligible for the U6C portion of the Dealership Employee Purchase Program.
Chevrolet Trucks
Equinox - Limited GMU.
Astro Van - No cargo models in GMU.
Express Van - No cargo models in GMU.
Silverado 2500/2500HD - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed.
Silverado 3500 - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed.
Cutaway Vans - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
Kodiak (C4500) - Not available.
GMC
Safari Van - No cargo models in GMU.
Savana Van - No cargo models in GMU.
Sierra 2500/2500HD - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed.
Sierra 3500 - Orders must include a box (E63), no chassis (ZW9/9W9) models allowed
Cutaway Vans - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
TopKick (C4500) - Not available.
Pontiac
Grand Am Sedan - Not available for GM Employee, Supplier, or Dealership Employee Purchase.
Hummer
H2 SUT - Very limited GMU.
Saturn - No restrictions
GMS = GM Employee Plan
GMU = GM Company Car Purchase Plan
The above restrictions are subject to change at any time.
9) Weekly Constraint/Production News
Constraints are distributed based on Available Days’ Supply (ADS), Controlled Method or Percent of Allocation (POA). Dealers can use the weekly constraint wire to see the basic availability of an option. The percentages on the weekly constraint wire are estimated based on the national retail number of the constrained option divided by the amount of retail orders being allocated for the week.
Chevrolet Constraint Wire for 2/24/05
2005 CORVETTE
Corvette contraints for February 24, 2005
Constraint Code, Description, Available Nationally
00479, Corvette Convertible, 242 (DOWN 19 from last week)
00485, Corvette Coupe with 1SX Package, 0
00649, Corvette Coupe or Convertible with Z51 Package, 202 (UP 81 from last week)
Corvette Convertible with Power Top, NO CONSTRAINT!!!
Corvette Convertible with Gray or Cashmere Top = 0
All orders and order requests for Corvette Convertibles with other than a Black top have been cancelled.
Orders selected this week for dealers with allocation within constraints will be produced the week of 3/21/05 thru 3/27/05.
10) GM Vehicle Distribution System – Basic Explanation
Estimated Shipments Process
Distribution of the production schedule is based on the following:
• Controlled Allocation
• Available Days’ Supply (ADS)
• Forecast
These calculation methods are explained below.
GMVOM Timing Cycle
The Estimated Shipments process occurs each month, and is completed on Thursday of Week 1 in the GMVOM Timing Cycle.
NOTE: The Estimated Shipments and Consensus processes do NOT apply to Regional Consulting Center (RCC) dealerships. Also, constraints are distributed to RCC dealerships ONLY for constrained allocation groups.
Estimated Shipments Process Tasks
Plan Production Volumes
GM plans production volumes for each allocation group by analyzing several inputs, including marketing strategies, production estimates, production constraints, and dealers’ sales forecasts. During the analysis, GM must answer the following questions related to each of these inputs:
• Marketing strategies – How should GM position the vehicle in order to achieve maximum market penetration? Are there major advertising or incentive programs planned for specific periods during the year?
• Production estimates – How many vehicles can the plants produce for a specific period?
• Constraints – What models and options are available only in limited quantities because their production capacity is too low or their demand is too high?
• Dealers’ sales forecasts – What quantity of vehicles have the dealers determined that they can sell?
Dealers’ sales forecast quantities are an important factor in the production planning process.
Process Temporary Allocation Requests
Based on specific qualifying criteria, GM assigns temporary allocation quantities to dealers in order to supplement the normal sales planning and allocation processes.
NOTE: For information about the qualifying criteria, dealers should consult with their respective Zone Teams.
Calculate Estimated Shipments
GM calculates estimated shipments for each dealer based on the following inputs:
• The estimated production volume for the allocation group.
• A specific production period.
• A selected calculation method.
GM has three methods for calculating estimated shipments—Controlled Allocation, Available Days’ Supply (or ADS), and Forecast. The method that GM selects for calculating estimated shipments is based on:
• Whether or not the allocation group is a new vehicle line that is just being launched.
• Whether the demand for the allocation group is greater than or less than the supply.
CONTROLLED ALLOCATION CALCULATION METHOD
• When does GM use the Controlled Allocation method? GM uses the Controlled Allocation method during the launch of a new vehicle, at the time when demand is greater than supply and the marketing team wants to target a specific market. GM also uses the Controlled Allocation method when the long-term demand for a vehicle (such as the Corvette) exceeds the vehicle supply.
• How does the method work? When using Controlled Allocation, GM will typically allocate vehicles to the dealers based on a defined launch strategy or equitable distribution; for example, based on marketing strategies, GM may allocate a new pickup truck to dealerships that are located in rural areas.
AVAILABLE DAYS’ SUPPLY (ADS) CALCULATION METHOD
• When does GM use the ADS method? GM uses the ADS method the majority of the time.
• How does it work? GM allocates vehicles to the dealers with the lowest Available Days’ Supply (ADS). A dealer’s ADS is based on the dealer’s Total Availability and Daily Sales Rate for the allocation group.
• What is a dealer’s Total Availability? A dealer’s Total Availability is the quantity of vehicles of the specified allocation group that a dealer has available. This quantity is equal to the total number of vehicles in stock (on ground), in transit to your dealership, in system (orders that are being built), placed orders (orders that are ready to go to the production management system), and balance-to-go allocation (the dealer’s final allocation units that have NOT been submitted as preliminary orders or selected as placed orders for the current production period).
• What is a dealer’s Daily Sales Rate? A dealer’s Daily Sales Rate is the average number of units sold per day over a sales period of 1, 2, 3, or 12 months. GM determines which sales period to use for each allocation group. (GM uses 12 months only during the start-up and build-out periods for an allocation group.)
• What is a dealer’s ADS? A dealer’s ADS is equal to the dealer’s Total Availability divided by the dealer’s Daily Sales Rate. (For example, if a dealer’s Total Availability is 30 and its Daily Sales Rate is 2, then its ADS is 15.)
ADS Example Step 1 – Calculate Total Availability
The Allocation application calculates the total availability for each dealer after receiving the availability data. Remember that Total Availability includes balance-to-go.
ADS Example Step 2 – Calculate Daily Sales Rate
The Allocation application calculates the daily sales rate for each dealer by determining the dealer’s total sales for a defined sales period of 30, 60, 91, or 365 days and dividing the dealer’s total sales by the number of days in the sales period. (GM decides which sales period to use for each allocation group.)
ADS Example Step 3 – Calculate ADS
The Allocation application calculates each dealer’s ADS by dividing the total availability by the daily sales rate.
ADS Example Step 4 – Assign First Unit Based on ADS
GM determines which dealer has the lowest ADS, and assigns a unit to that dealer.
In this example, Dealer D gets an additional unit, making its total availability change from 2 to 3. The dealer’s ADS is also recalculated, and changes from 7 to 11. Remember, the ADS is calculated by dividing the total availability by the daily sales rate—in this example, 3 divided by 0.27 is 11.11 units (which is rounded down to 11).
ADS Example Step 5 – Assign Next Unit Based on ADS
GM determines which dealer has the lowest ADS, and assigns a unit to that dealer.
In this example, Dealer C gets an additional unit, making its total availability change from 3 to 4. The dealer’s ADS is also recalculated, and changes from 10 to 13. Remember, the ADS is calculated by dividing the total availability by the daily sales rate—in this example, 4 divided by 0.30 is 13.33 units (which is rounded down to 13).
At this point, only two units have been allocated; however, this step is repeated until all available units of an allocation group are allocated. Each time this step is repeated, the dealer with the lowest ADS earns a unit.
ADS Example Step 6 – Determine National ADS Bar
When the last available unit in an allocation group is allocated, the ADS of the dealer who received the last unit is called the “National ADS Bar.” The National ADS Bar is the allocation cutoff point.
Dealers that had a beginning ADS that was less than the National ADS Bar received at least one unit for the production period. Dealers that had a beginning ADS that was greater than the National ADS Bar received no units for the production period.
For example, if the ADS of the last dealer to receive a unit is 20, then the dealers who had a beginning ADS that was less than 20 would have received at least one unit for the production period. Dealers who had an ADS that was greater than 20 would NOT have received any units for the production period.
FORECAST CALCULATION METHOD
• When does GM use the Forecast method? GM uses the Forecast method when calculating estimated shipments for the sales outlook period (or month). The sales outlook period is shown in the last column of the table at the top of the Estimated Shipments report. The column heading is “Estimated Shipments [Month/Year].”
• How does the method work? GM calculates estimated shipments by using each dealer’s Sales History for the allocation group.
• What is a dealer’s Sales History? A dealer’s Sales History is the number of vehicles that the dealer sold during the same production period one year ago, or the average number of vehicles that the dealer sold during the same production period one and two years ago or one, two, and three years ago. (GM typically uses one year for vehicles that have a high production volume. GM may use two or three years for vehicles that have a lower production volume.)
Forecast Example Step 1 – Calculate Sales History
The Allocation application calculates each dealer’s 3-year sales history for the allocation group and production period. The application adds all dealers’ 3-year sales history values in order to get the total (or national) 3-year sales history for the allocation group and production period.
Forecast Example Step 2 – Calculate Average Actual Sales
The Allocation application calculates each dealer’s average actual sales by dividing the 3-year sales history by 3. The application adds all dealers’ average actual sales values in order to get the total (or national) average actual sales for the allocation group and production period.
Forecast Example Step 3 – Calculate the % to National Value
The Allocation application divides each dealer’s average actual sales value by the total (or national) average actual sales value in order to get a % to National value. (In this example, the total average actual sales value is 45.) The total of all dealers’ % to National values must equal 100 percent.
Forecast Example Step 4 – Calculate Estimated Shipments
The Allocation application multiplies each dealer’s % to National value by the planned production volume for the allocation group and production period. (In this example, the planned production volume is 51.) The resulting value is the dealer’s estimated shipments quantity for the allocation group and period. The total of all dealers’ estimated shipments values must equal the planned production volume.
Send Quantities to Dealers
After GM calculates the estimated shipments quantities, they are sent to Order Workbench where dealers may review them as input for their sales planning and forecasting activities.
How can a dealership get more product if its sales are better than expected?
When a dealership's sales are better than expected, the dealership and its Area Sales Manager can get more product by doing the following:
Increase the dealership's production consensus quantity for the next production period.
Increase the dealership's desired allocation quantity in the weekly Order Vehicles process.
Look for trade or purchase opportunities by using the Locate Vehicles screens in Order Workbench.
What is the Available Days' Supply (ADS) formula?
In the Estimated Shipments process, the Available Days' Supply (ADS) formula is used in order to distribute available production volumes fairly and responsively to dealers.
In the Constraints Distribution process, the ADS formula is used in order to distribute available constraints fairly and responsively to dealers.
How do I determine which vehicle constraints were distributed to my dealership?
You can determine which vehicle constraints were distributed to your dealership by accessing the View My Allocation Summary screen in the Order Vehicles section of Order Workbench.
What is the difference between a preliminary order and a placed order?
A preliminary order is a vehicle order that a dealer configures and submits to GM for selection during the Vehicle Order Selection process.
A placed order is a preliminary order that was submitted to GM by a dealer and was selected to be built. A placed order is any order that is at Event Code 2000 (Accepted by GM), but has not reached Event Code 2500 (Preferenced).
How does the Vehicle Order Selection batch process place my dealership's preliminary orders?
The Vehicle Order Selection batch process places your dealership's preliminary orders based on the following factors:
The priority code that your dealership assigned to each preliminary order.
Your dealership's final allocation quantity for the target production period (TPP).
Your dealership's desired allocation quantity for the TPP (if additional allocation is available).
Your dealership's distributed constraints quantities for the TPP.
How can I tell whether a preliminary order has been placed?
When a preliminary order is placed, the vehicle order event code changes to 2000 (Accepted by GM). You can view the current event code for an order by accessing one of the following screens:
Order Detail screen in the Manage Inventory section
Preliminary Order/Stored Configuration Detail screen in the Order Vehicles section
How much time do I have in order to change or replace placed orders?
For a specific target production period (TPP), you can change or replace placed orders until 9:00 PM Eastern Time on Tuesday.
Can I change (or replace) a placed order that is based on a national pattern order?
You can change both the model and content of a placed order that is based on a national pattern order; however, the model must be within the same allocation group as the national pattern order and the model and content must be within any applicable constraints.
What happens if I try to add a constrained or restricted option onto a placed order?
The system will reject your change, and the placed order will revert to its original content.
How can I track a sold order for a customer?
You can track a sold order for a customer by using the Vehicle Order Inquiry screen. You can access this screen by clicking the Go to Vehicle Order Inquiry link on the Manage Inventory drop-down menu.
Thanks for taking the time to read my weekly newsletter and thanks for your business!
Last edited by Ken Fichtner; 02-24-2005 at 08:04 AM.
02-24-2005, 12:14 PM
#5
Race Director
This is super news Ken. Love hearing that the new Z06 will start production ahead of the 06 coupes and verts. Based upon this latest information from GM, it would appear that pricing information will be released no later than June 1st??
Thanks
GOLD72
Thanks
GOLD72
02-24-2005, 10:34 PM
#7
Safety Car
2006 Model Year Corvette Coupe/Convertible Startup Production Date
Dealers will be able to consense (agree to accept allocations) for 2006 Corvette Coupes/Convertibles in July, 2005.
Dealers will be able to view their final, actual allocations on July 27, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on July 28, 2005.
Allocations available during the July consensus will be available for production September 9 thru October 2, 2005.
Dealers will be able to consense (agree to accept allocations) for 2006 Corvette Coupes/Convertibles in July, 2005.
Dealers will be able to view their final, actual allocations on July 27, 2005.
Dealers will see their first allocations (if they have them available) within which they can approve orders on July 28, 2005.
Allocations available during the July consensus will be available for production September 9 thru October 2, 2005.
Looks like this means that 2006 ordering starts on July 28. Correct?
02-26-2005, 12:58 AM
#8
Burning Brakes
Why is Z51 on constraint is it supplier issues or something else. I saw on a thread once that fuel consumption on Z51 w/MN6 was the reason is this true.
i am only curious cause i have this and get bad economy compared to all my previous vettes. Down to 12mpg vs 18mpg
Thanx
i am only curious cause i have this and get bad economy compared to all my previous vettes. Down to 12mpg vs 18mpg
Thanx
02-28-2005, 01:39 PM
#10
Le Mans Master
Thread Starter
Member Since: May 1999
Location: Laurel MT
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Al,
Yes, the order tables should be ready for us to submit orders on July 28, 2005.
Joezone914,
The Z51 option constraint is based on a CAFE issue per GM. CAFE = Corporate Average Fuel Efficiency
Thanks for stopping by and for your comments and questions!
Ken Fichtner
Yes, the order tables should be ready for us to submit orders on July 28, 2005.
Joezone914,
The Z51 option constraint is based on a CAFE issue per GM. CAFE = Corporate Average Fuel Efficiency
Thanks for stopping by and for your comments and questions!
Ken Fichtner
03-01-2005, 03:43 PM
#12
Le Mans Master
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Based upon the information received, I would guess that we will be able to submit our order requests on the new Z06 in early June.
Ken Fichtner
Ken Fichtner
