Ken Fichtner

Greetings from Montana.

I can’t wait for the plant to hit full production and for the constraints to be lifted. As a dealer I have never been so frustrated trying to get my fair share of the total allocations and then to be able to have order requests placed within those allocations.

Believe it or not, it’s not fun being in the middle between disgruntled customers and the corporate giant!

I have always tried to assist my customers in getting the exact car of their dreams but sometimes I think it would be easier to just order Corvettes the way I want, to let them arrive, and then sell what we have.

Frustration…..

Now that I have that off of my chest, here’s the latest news:

This week’s news includes:
1) Latest Production Constraints – UPDATED 3/11/04
2) Final 2005 Production Date
3) Early Build Out Colors 2005 Coupe/Convertible – UPDATED 3/11/05
4) New colors to be offered in 2005 – Updated 3/11/05
5) Initial 2006 Coupe/Convertible Production Date
6) Initial 2006 Z06 Production Date
7) Preliminary 2006 Order Information – NEW 3/11/05

Don’t forget to read these WEEKLY NEWSLETTERS:

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
2) 2005 Corvette Colors Dropped/New Colors Offered – New 3/11/05
3) 2006 Corvette Z06 Startup Date Information
4) Corvette Price Increase
5) 2006 Corvette Z06 FAQ
5) GM Rebates/Special Finance Rates
6) 2006 Corvette Preliminary Order Information
7) Corvette Production Issues – Constraints, Convertibles
8) Corvette Pricing Revealed
9) GM Rebates/Special Finance Rates
10) GM Employee & Supplier Eligibility for 2005
11) Weekly Constraint/Production News

1) 2005 Coupe/Convertible Buildout Information & Final Buildout Date, 2006 Startup Date

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) 2005 Corvette Colors Dropped/New Colors Offered – New 3/11/05
To all Chevrolet dealers:

Due to an unanticipated surge in demand both Magnetic Red (86U) and
Millennium Yellow (79U) are now completely built out for the 2005 model
year. Therefore, no additional orders with either 86U or 79U are able to
be selected for production. As a result of this situation both colors will
necessarily be constrained to ZERO for this and future DOSP cycles.

The 2006 model year replacements for Magnetic Red and Millennium Yellow will be pulled forward and made available for 2005 Corvettes in the near future. For your planning purposes specifics regarding these replacement colors and the timing of their availability should be communicated within the next week.

3) 2006 Corvette Z06 Startup Date Information

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.

4) 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.

5) 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.

6) 2006 Corvette Preliminary Order Information

PRELIMINARY ONLY!

2006 Corvette Coupe/Convertible

Packages:
1LT LT Option Package 1
2LT LT Option Package 2
3LT LT Option Package 3

Options:
MX0 Automatic Transmission
MN6 6 Speed Manual Transmission
C2L Dual Removable Roof Package
CC3 Transparent Roof Panel
F55 Magnetic Selective Ride Control
QG7 High Polished Wheels
UE1 OnStar Communications
VK3 Front License Plate Bracket
Z51 Performance Package
CM7 Power Top
U3U Navigation System

Colors:
10U Arctic White
19U LeMans Blue Metallic
41U Black
45U Velocity Yellow
67U Machine Silver Metallic
71U Daytona Sunset Orange Metallic
74U Victory Red
80U Monterey Red

Interior Colors:
023 Red Leather
193 Ebony Leather
313 Cashmere Leather
843 Titanium Leather

Convertible Top Colors:
29T Storm Gray
35T Beige
37T Titanium
41T Black

DEALERS MAY BEGIN SUBMITTING ORDER REQUESTS ON 6/27/05

2006 Corvette Z06 Coupe

Packages:
1LZ LZ Option Package 1
2LZ LZ Option Package 2

Options:
MN6 6 Speed Manual Transmission
QL9 High Polished Wheels
VK3 Front License Plate Bracket

Colors:
19U LeMans Blue Metallic
41U Black
45U Velocity Yellow
67U Machine Silver Metallic
71U Daytona Sunset Orange Metallic
74U Victory Red

Interior Colors:
023 Cobalt Red Leather
193 Ebony Leather
843 Titanium Leather

DEALERS MAY BEGIN SUBMITTING ORDER REQUESTS ON 5/23/05

7) Corvette Production Issues – Constraints, Convertibles

To: Chevrolet Dealers

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.

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.

8) 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)

9) 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.

10) 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.

11) 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 3/11/05

2005 CORVETTE

Corvette contraints for March 11, 2005

IF your dealer of choice has any allocations for orders to be approved today, here are the constraints:

VET Constraints
Target Production Period: 04/04/2005 - 04/10/2005
Constraint Number Description National Qty
00479 1YY67 CORVETTE CONV = 318
00485 1YY07 CORVETTTE CPE & 1SX = 0
00649 1YY07/1YY67 WITH Z51 PERF HANDLING= 398
01291 1YY07/1YY67 WITH 79U MILLENNIUM YELLOW = 0
01292 1YY07/1YY67 WITH 86U MAGNETIC RED MET = 0

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 4/4/05 thru 4/10/05.

12) 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!

Z06CTSV

Thanks

Joe
New Orleans

xilr8n

Use of color is a big help

Thanks!!

Lawrence

ttomczak

While I know its an early list, why are the NAV option codes the old ones, and what happened to the QX1 grey wheels?

Also, would they really use the MX0 code for the 6 speed that was the same as the 4?

Thanks,
Thomas

AC54ME

Ken,

As you note above, being in the middle of this corporate (GM) giant and the customer must be frustrating as well as dishearting.

I feel for yours, and many other dealers, situation re: the frustration.

Is it not time for GM, and especially Corvette, management to attempt to solve the existing problems?

After all, there are numerous Forums that are directed to the Corvette, and these offer a synopsis of the Corvettes failings, sucesses, and prospective and existing owners desires on what they want to spend their money on when purchasing a Corvette. Do not any of these excutivies read, or have their staff prepair a briefiing, regarding issues?

"Feedback" via the Corporate Survey's cannot possibly be totally positive, at least if those filling these out are not ignoring issues incurred either in the ordering, delievery and service/maintenance issues and complaints.

Dealers must be providing input to these issues as well. Are they being ignored?

In the past 40 years I have purchased well over twenty- five (25) new Corvettes.

Few have been delievered without some mishap, and certainly none have been 'service free' of manufacturing issues.

For the past two (2) Corvette's I have elected to fully ignore the GM/Chevrolet service/maintenance facilities, or, more correctly, nightmare.

I have found it much more beneficial, and easier, to take my Corvette to a tunner's shop - since in the majority of instances they are more familiar with how to fix a problem, and do so correctly the first time.

Further, to make these Corvettes more to my liking and needs I use aftermarket products. I must be speeking for a lot of other owners since there is an extremely large number of aftermarket vendors serving the Corvette owners. They are more than willing to expose themselves, from a capex investment viewpoint, in filling the massive void GM/Corvette has left in this matter.

In addition, many aftermarket products 'remidy' the poor production products from Corvette (need examples - on the C5, the column lock issue, the poor quality seat covers, etc. ect., etc.).

Concurrently, I (and again a large percentage of other Corvette owners) are supporting a large number of aftermarket 'tunners'. GM/Corvette management should be asking the question - why is this occurring?

There is a simple answer, one that any first year MBA or Business major would know - the prospective customer wants, especially in the sports car arena, to have a Corvette that fits their needs, not the Corvette that is 'pre- packaged', and if the prospective customer desires a 'mix and match' product too bad.

Please look at the sucess of the (dare I say this on a Corvette Forum) Mustange today. A prospective customer can 'pick' from a large selection of options (which Ford calls models) to have a vehicle that fulfills thier particular desires.

GM cannot, with a strait face, say that this is not possible in the Corvette product, unless the Caddy, Chevy, Buick lines are no longer under the umbrella of GM.

For example - I can go to a Caddy dealership and purchase, from vehicles off the same production line, a 'hi performance' Caddy, or a 'grandfathers' Caddy. How about their truck line - nothing like a large number of interior, engine, interior, etc. options, on one truck model.

I have sucessfully managed, as COO and CEO of numerous large corporations in the emerging market arenas, companies where the customer needs being fullfilled meant the sucess or failure of the company.

I find it almost impossible to understand why (I believe the 'how' resides in leadership and management personnel of Corvette, including but not limited to Mr. Dave Hill) the Corvette marquee and product(s) are such a sham when it come to allowing the prospective client to order a vehicle of their desire from the many 'bin items' that are available to another Corvette model (I.e., a 427 in the coupe and/or convertible line up).

If there appears another "Corvette" type manufacture, willing to go the distance for the prospective customers needs and desires, and supports the dealers in bring the product to market, I'll never purchase another one from GM. I am sure that others feel the same way.

In the meantime I'll continue to purchase from vendor and tunner products to support my personnal desires. This sure cannot be benefical to GM's bottom line.

If Corvette executive management. or GM executives, do not heed the needs and desires of the potential Corvette customer, it may eventually find itself going the way of the Olds line, or placing itself in the same situation GM found itself under Mr. Smith's management in the '90's.

So, getting back on track - why haven't you and the other Corvette distributers, gone toe to toe with Corvette management excutivies over these, and other matters? Or, have you?

I am sure all would like to have a feeling for Corvette management exectutivies position in these matters.

Many thanks for reading this, if you did that is.

TooManyIDs

Ken,
Now orders can go in June 27, but still won't start production until September 8?