Kens Weekly Newsletter - 1/21/06
01-21-2006, 11:01 AM
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Kens Weekly Newsletter - 1/21/06
Spring has arrived in Montana in the middle of winter!
With temperatures in the 50’s we are driving our Corvettes and riding our Harleys!
I am sorry that I haven’t published a full newsletter for weeks.
We are making several changes here at the dealership. Couple that with all of the crazy programs and announcements from GM and we have been busy.
Things appear to be settling down now and GM is intent on being a strong corporation in the future. I am confident that the Chevrolet will continue in it’s leadership position.
By the way: Chevrolet is the #1 selling car and truck in America!!! We have successfully unseated Ford for the first time since 1986.
We are extremely proud to be part of this winning team and more so proud that we have been in business since 1953, the same year that the Corvette was introduced!!
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, Dealer
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:
Bruce Kingsbury, 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 (everything updated!)
1) Production News
2) Corvette Parts and Accessories
3) Pricing Updates
4) 2006 Corvette Order Guides
5) 2006 Corvette Z06 Allocation Information
6) Distribution System Explained
7) Special Purchase/Sale 2005 Corvette Convertibles
8) Chevrolet Incentives
9) GM Employee & Supplier Plan
10) Weekly Constraint/Production News
1) Production News
Subject: Corvette Production Update
Message: CHM20060306
From: Chevrolet Marketing
Date: January 2, 2006
Subject: Corvette Production Update
Administrative message CHD20050187 dated 12/15/2005 advised you of potential actions that might be necessary to manage wheel supply issues for Corvette and Z06. We are pleased to inform you that with the dedicated efforts of several GM teams we have not and likely will not in the future need to change wheel options on any 2006MY Corvette orders. Although still constrained, we expect to be able to offer the full selection of painted and polished wheel options. The much anticipated Chrome wheel option, however, must continue postponement until later this model year.
Order Guides, GM AutoBook and Order Workbench will therefore remain unchanged relative to wheel options.
We sincerely apologize for the inconvenience and confusion that this situation may have caused you or your customer(s) but are obviously pleased with the positive resolutions to the issues outlined in the previous communication.
Subject: Corvette Production Update
Message: CHD20050187
To: All Corvette Dealers
From: VSSM Order Fulfillment
Date: December 15, 2005
Subject: Corvette Production Disruptions
Coupe & Convertible Production
The wheel supply for Corvette has experienced significant disruption. Unfortunately, this situation has caused GM to make several adjustments affecting wheel options, production volumes and production schedules. Many orders may need to have wheel selections changed based on wheel availability. Since timing is critical, and current wheel supply is uncertain, Order Fulfillment / Distribution is unable to follow the normal process of returning orders to dealers for necessary changes. Regrettably, polished wheels will not be available from our new supplier. This will force us to change all orders scheduled to be built after 1/3/06 to Silver Painted wheels. The much anticipated Chrome wheel option will be postponed until late spring production. Any substitution of a lower cost wheel will be reflected in a reduced MSRP and invoice. Additionally, overall wheel availability may delay production dates of "In System" orders.
Z06 Production
The impact to Z06 production is still undetermined as is the future availability of the polished wheel option. Some orders may need to have wheel selections changed based on wheel availability. As is the case with Coupe & Convertible, wheel availability may delay production dates of "In System" orders. Dealers will be advised of their future Z06 allocation outlook as soon as production schedules can be solidified.
Summary
As orders are changed, Order Fulfillment will notify affected dealers via GM Messenger. Order Guides, GM AutoBook and Order Workbench will be changed as soon as practical to reflect the change in wheel options.
We sincerely apologize for the inconvenience and disappointments this situation may cause you and your customer(s).
2) Corvette Parts and Accessories
We offer a complete line of Genuine Corvette Accessories at dealer wholesale prices.
Without: Sales Tax
Without: Exhorbidant shipping and handling fees
Order many items online here:
www.fichtnerchevrolet.com
Go to the parts link on our website!
Or call Robert or Thomas in our parts department toll free at 800-234-5284
3) Pricing Updates
2006 Model Year Chevrolet Price Repositioning Effective 1/11/06
Message: CHF20060042
Chevrolet will announce price repositioning on 2006 model year Suggested Retail prices effective with models produced on or after January 11, 2006. The revised Suggested Retail prices will affect the Aveo, Malibu, Malibu Maxx, Monte Carlo, Impala, Cobalt, Corvette and HHR, Trailblazer, SSR, Colorado, Equinox, Silverado, Tahoe, Suburban, Avalanche, Uplander and Express. Dealer invoice amounts will change accordingly.
Dealer price schedules will be available in GM DealerWorld under Sales &/Or F&I Tabs effective January 10, 2006. Reference administrative message #VSF20040006 (dated February 26, 2004) for more information regarding this web site.
In the Locate Vehicle module of Order Workbench, vehicles invoiced prior to January 11, 2006 will continue to show the original non-adjusted MSRP, Dealer Invoice and GMS prices. Please refer to the appropriate regional incentive program message to determine the amount of any dealer cash adjustment.
Pricing will be available in the Order Workbench Configure a New Vehicle process at 8:00 AM EST Thursday January 12, 2006. The revised pricing will be reflected in GM Autobook with data version 108.2 which will be available for web download to stand-alone subscribers on Wednesday January 11th and available to all GM Access users on Friday morning January 13, 2006.
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.
Chevrolet reserves the right to discontinue or change prices at any time, without written notice. All rights reserved.
4) 2006 Corvette Order Guides
Order guides are available here.
Click here for the 2006 Coupe:
http://temp.corvetteforum.net/c5/ken.../2006coupe.pdf
Click here for the 2006 Convertible:
http://temp.corvetteforum.net/c5/ken...onvertible.pdf
Click here for the 2006 Z06:
http://temp.corvetteforum.net/c5/ken...rder_guide.pdf
5) 2006 Corvette Z06 Allocation Information
Corvette Z06 Allocation Plan
The 2006 Corvette Z06 allocation plan is a 2 phase process. While the details of each phase are shown below, there are some key points worth noting. First, not every Certified Corvette Dealer will receive a 2006 Corvette Z06 model. The Z06 model will have its own allocation group - Z06. And, Corvette Z06 retail production will be allocated to eligible Corvette Dealers using the most current 52-week total retail Corvette sales.
• Dealers will be able to view current month allocation plus one month outlook
• Each Dealer will be mailed a six month allocation outlook
• In December, a four month outlook will be communicated based on the most current 52-week sales history
• In April 2006, distribution will provide the balance of model year outlook based on the latest 52-week sales history for buildout
• The above steps were established to discourage over commitment/selling
Phase I Details
• Dealers will be placed in Tiers based on their 52 weeks of retail Corvette sale
history (June 2004 - May 2005) for the first 3 consensus cycles.
- Tier 1 will be comprised of the 25 largest volume Corvette Dealers
- Tier 2 will include the largest 125 Corvette Dealers
- Tier 3 will expand to include the largest 300 Corvette Dealers
• Initial consensus:
- June 2005 (for production week 33)
- Exclusively to Tier 1 Dealers using the June 2004 - May 2005 sales history
• Second consensus:
- July 2005 (for production weeks 34 - 36)
- Exclusively to Tier 1 & 2 Dealers based on the launch sales data
• Third and final Phase I consensus:
- August 2005 (for production weeks 37 - 40)
- Distributed to Tier 1, 2 & 3 Dealers
• Consensed allocations will be "protected", so that Dealers cannot accidentally
loose their allocations. Pattern Z06 orders will be created as necessary during
weekly DOSP cycles.
Phase II Details
• Eliminates the assignment of Dealer Tiers. All Certified Corvette
Dealers with a June 2004 - May 2005 sales history will be comprehended
in the balance of allocation calculations.
• The allocation determined by the same formula in phase 1
• Begins with the September 2005 consensus (for production weeks 41 - 45)
• Due to the limited production of the Z06 model there will be no
guarantee that each Certified Corvette Dealer will receive allocation
for a Z06 model
• Consensed allocations will continue to be "protected", from accidental
loss. Pattern Z06 orders will be created as necessary during weekly
DOSP cycles.
• Z06 will not qualify for PEP, but will be eligible for EVP Drive & Buy
and GMS/Supplier when the current incentive program expires
Don’t be misled by your dealer!
Please note that EVERY Chevrolet dealer received a letter from the Corvette Marketing Team dated June 15, 2005.
Before you place an order and give a deposit to your dealer of choice based upon what they tell you, ask to see this letter!!!!
Have a successful day,
Ken Fichtner
Fichtner Chevrolet
Here’s what the letter says:
XXXXXX
XYZ Chevrolet
123 Main Street
Anywhere, MT XXXXX
Attention: Dealer Operator and New Car Sales Manager
Subject: Corvette Z06 Allocation Projection
An integral part of the 2006 Corvette Z06 distribution plan is to provide an extended allocation projection to all eligible Corvette dealers. This is a projection and not a commitment, but is intended to assist dealers in managing customer expectations in line with dealer allocation.
Below is your dealership’s projected allocation of Z06 through December 2005 production. A second extended projection will be provided in December. Please keep in mind that this allocation projection is based on an estimated production schedule and therefore must continue to be considered as a projection and is not to be considered an absolute commitment.
Your Z06 Estimated Allocations:
July August September October November December
# # # # # #
If a dealer chooses not to consent to their Z06 allocation that allocation will be redistributed to another eligible dealer during the variance resolution and will not be rolled forward nor will it be converted to regular Corvette allocation.
Note: Complete details of the Z06 Distribution Plan are available in Chevylaunch.com
CORVETTE MARKETING TEAM
6) Distribution System Explained
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.
7) Special Purchase and Sale on 2005 Corvette Convertibles
New 2005 Convertibles – I need to sell them!!!!
We were able to purchase a couple of extra Convertibles from another dealer.
Here’s what we have:
2005 Corvette Convertible
Preferred Equipment Pkg 1SB
OnStar Communications
AM/FM CD with Navigation
XM Satellite Radio
Special Paint Charge
Automatic OD Transmission
LeMans Blue Metallic
Beige Convertible Top
Cashmere Leather Trim
Odometer – 2 miles
MSRP $58120.00
Make an offer!
We will honor GM Employee, Supplier, and GM in the Driveway Certificates on this car!
NO SALES TAX!!! (if titled and licensed in Montana)
2005 Corvette Convertible
Preferred Equipment Pkg 1SB
OnStar Communications
AM/FM CD with Navigation
Power Convertible Top
Magnetic Selective Ride Control
Polished Aluminum Wheels
XM Satellite Radio
Automatic OD Transmission
Daytona Sunset Orange Metallic
Black Convertible Top
Ebony Leather Trim
Odometer – 341 miles
MSRP $62805.00
Our cost with freight to the dealership $57216
Make an offer!
We will honor GM Employee, Supplier, and GM in the Driveway Certificates on this car!
NO SALES TAX!!! (if titled and licensed in Montana)
We can easily modify these Corvettes by adding any number of accessories for you including, but not limited to: Exhaust system, suspension package, color keyed interior and exterior items, Lloyds mats, front bra, etc.
Email me before they are gone!
kenfichtner@fichtnerchevrolet.com
8) Chevrolet Incentives
Click here for all of the details!
http://temp.corvetteforum.net/c5/ken...ry_21_2006.pdf
9) GM Employee and Supplier Plans
Update on Employee/Supplier/GM in the Driveway Plans
CORPORATE PROGRAM NUMBER: 06-06
CORPORATE PROGRAM NAME: 2006 MODEL YEAR GM EMPLOYEE PURCHASE PROGRAM
PROGRAM DESCRIPTION:
GM NEW VEHICLE PURCHASE PROGRAM:
GM NEW VEHICLE PURCHASE PROGRAM PROVIDES A SPECIAL VEHICLE PRICE
TO PROGRAM PARTICIPANTS (I.E. GM EMPLOYEES, RETIREES, SURVIVING
SPOUSES AND ELIGIBLE FAMILY MEMBERS) WHEN AN ELIGIBLE VEHICLE IS
PURCHASED FROM A PARTICIPATING DEALER AT THE PRICES DESCRIBED
BELOW PLUS APPLICABLE TAX, TITLE AND REGISTRATION FEES.
GM EMPLOYEE ORDER/OUT OF STOCK PURCHASE PROGRAM (GMS):
-NEW UNITS INCLUDING UNITS USED AS DEMO AND DRIVER EDUCATION LOANERS
WITH A MAXIMUM OF 2,499 MILES, BUT EXCLUDING APPROVED CONVERTED
UNITS, ARE DELIVERED TO AN ELIGIBLE PROGRAM PARTICIPANT FROM
PARTICIPATING DEALER STOCK AT AN AMOUNT (I.E., RETAIL DEALER INVOICE
TOTAL LESS HOLDBACK AND ANY GM CO-OP ADVERTISING* AMOUNT PLUS $75)
DISPLAYED IN THE GMS FIELD ON THE GM VEHICLE INVOICE.
-DEMO AND DRIVER EDUCATION UNITS WITH A MINIMUM OF 2,500
MILES AND A MAXIMUM OF 7,500 MILES:
VEHICLES ARE DELIVERED FROM PARTICIPATING DEALER STOCK AT AN
AMOUNT (I.E., RETAIL DEALER INVOICE TOTAL LESS HOLDBACK AND
ANY GM CO-OP ADVERTISING* AMOUNT PLUS $75) DISPLAYED IN THE
GMS FIELD ON THE VEHICLE INVOICE LESS A DISCOUNT NEGOTIATED
BY THE DEALER AND THE CUSTOMER.
* IDENTIFIED AS ACCOUNT 65A ON THE GM VEHICLE INVOICE.
GM COMPANY OWNED VEHICLE PURCHASE PROGRAM (PEP):
GM COMPANY OWNED VEHICLE PURCHASE PROGRAM PROVIDES
SPECIAL PRICING TO PROGRAM PARTICIPANTS (E.G., GM EMPLOYEES,
RETIREES, SURVIVING SPOUSES AND DEPENDENT CHILDREN UNDER THE AGE
OF 25) ON UNITS PREVIOUSLY USED IN THE GM COMPANY PRODUCTION
EVALUATION PROGRAM AS FOLLOWS:
PEP (GMU) UNITS ARE INVOICED AT MODEL, OPTION AND DESTINATION
FREIGHT (DFC) PRICES IN EFFECT ON THE DATE OF THE VEHICLE ORDER
LESS A MILEAGE DISCOUNT AND EXCLUDING HOLDBACK AND WHOLESALE
FLOORPLAN. THE ELIGIBLE PROGRAM PARTICIPANT PAYS GM INVOICE
TOTAL FOR THE VEHICLE PLUS APPLICABLE TAX (INCLUDING LUXURY TAX),
TITLE AND REGISTRATION FEES.
PROGRAM TIME PERIOD (DELIVERED):
OCTOBER 1, 2005 THROUGH SEPTEMBER 30, 2006
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
ELIGIBLE MODELS:
ALL NEW AND UNUSED 2005, 2006 AND 2007 MODEL YEAR BUICK, CADILLAC,
CHEVROLET, HUMMER AND PONTIAC-GMC PASSENGER CARS AND LIGHT DUTY
TRUCK MODELS **EXCLUDING HUMMER H1**.
NOTE: CERTAIN MODELS MAY BE PERIODICALLY EXCLUDED. IN THOSE
INSTANCES, DEALERS ARE NOTIFIED THROUGH AN ADDENDUM TO THIS
ADMINISTRATIVE MESSAGE.
PROGRAM NUMBER: 06-06ADD
PROGRAM NAME: ADDENDUM TO THE 2006 MODEL YEAR GM EMPLOYEE
PURCHASE PROGRAM
THIS IS AN ADDENDUM TO PROGRAM NUMBER 06-06-*
EFFECTIVE OCTOBER 1, 2005, THE 2005 CORVETTE IS NO LONGER RESTRICTED
FROM THE GM EMPLOYEE PURCHASE PROGRAM.
THE FOLLOWING VEHICLE IS RESTRICTED FROM THE "GMS" PORTION OF THE
GM EMPLOYEE PURCHASE PROGRAM:
CHEVROLET: RESTRICTION EFFECTIVE DATE:
2006 CORVETTE Z06 SEPTEMBER 7, 2005
SEE PROGRAM 06-06-* FOR COMPLETE DETAILS.
THIS IS THE END OF PROGRAM NUMBER 06-06ADD.
CORPORATE PROGRAM NUMBER: 06-10
CORPORATE PROGRAM NAME: 2006 MODEL YEAR GM SUPPLIER DISCOUNT PROGRAM
PROGRAM DESCRIPTION:
IF THE GM DEALER ELECTS TO PARTICIPATE IN THE PROGRAM, GENERAL MOTORS
SUPPLIER DISCOUNT PROGRAM ALLOWS ELIGIBLE EMPLOYEES OF GM SUPPLIERS
TO PURCHASE ELIGIBLE GM VEHICLES AT A GM ESTABLISHED PRICE (I.E., 4.5%
ABOVE THE "GMS PRICE"). BOTH THE GMS PRICE AND SUPPLIER PRICE ARE
STATED ON THE INVOICE. ANY DEALER INSTALLED OPTION, CONVERSION/UPFIT
PACKAGE, GENERAL MOTORS PROTECTION PLAN OR OTHER EXTRA CHARGE ITEM WILL
BE DELIVERED AT A PRICE AGREED UPON BETWEEN THE SUPPLIER AND THE DEALER.
DEMO AND DRIVER EDUCATION UNITS WITH A MINIMUM OF 2,500 MILES AND A
MAXIMUM OF 7,500 MILES:
VEHICLES ARE DELIVERED AT 4.5% ABOVE THE "GMS PRICE" ON THE VEHICLE
INVOICE LESS A DISCOUNT NEGOTIATED BY THE DEALER AND THE PURCHASER.
PROGRAM TIME PERIOD (DELIVERED):
OCTOBER 1, 2005 THROUGH SEPTEMBER 30, 2006
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
ELIGIBLE MODELS:
ALL NEW AND UNUSED 2005, 2006 AND 2007 MODEL YEAR BUICK, CADILLAC,
CHEVROLET, HUMMER AND PONTIAC-GMC PASSENGER CARS AND LIGHT DUTY
TRUCKS **EXCLUDING HUMMER H1**.
NOTE: CERTAIN MODELS MAY BE PERIODICALLY EXCLUDED. IN THOSE
INSTANCES, DEALERS ARE NOTIFIED THROUGH AN ADDENDUM TO THIS
ADMINISTRATIVE MESSAGE.
PROGRAM NUMBER: 06-10ADD
PROGRAM NAME: ADDENDUM TO THE 2006 MODEL YEAR GM SUPPLIER
DISCOUNT PROGRAM
THIS IS AN ADDENDUM TO PROGRAM NUMBER 06-10-*
EFFECTIVE OCTOBER 1, 2005, THE 2005 CORVETTE IS NO LONGER RESTRICTED
FROM THE GM SUPPLIER DISCOUNT PROGRAM.
THE FOLLOWING VEHICLE IS RESTRICTED FROM THE GM SUPPLIER DISCOUNT
PROGRAM:
CHEVROLET: RESTRICTION EFFECTIVE DATE:
2006 CORVETTE Z06 SEPTEMBER 7, 2005
SEE PROGRAM NUMBER 06-10-* FOR COMPLETE DETAILS.
THIS IS THE END OF PROGRAM NUMBER 06-10ADD.
CORPORATE PROGRAM NUMBER: 06-13
CORPORATE PROGRAM NAME: 2006 MY "GM IN THE DRIVEWAY" PROGRAM
PROGRAM DESCRIPTION:
THIS IS THE GENERAL MOTORS REFERRAL PROGRAM WHERE SELECT
EMPLOYEES AND RETIREES CAN PASS ALONG TO FRIENDS, NEIGHBORS AND
SELECT FAMILY MEMBERS AN AUTHORIZATION NUMBER WHICH ALLOWS THEM
TO PURCHASE OR LEASE AN ELIGIBLE NEW AND UNUSED GM MODEL DETAILED
IN GUIDELINE NUMBER 4 BELOW AT A FORMULA PRICE.
IF THE GM DEALER ELECTS TO PARTICIPATE IN THE PROGRAM, THE
AUTHORIZATION NUMBER WILL ALLOW THE CUSTOMER TO PURCHASE THE ELIGIBLE
VEHICLE AT THE SUPPLIER DISCOUNT PROGRAM PRICE (I.E., 4.5% ABOVE THE
"GMS PRICE"). THE SUPPLIER PRICE IS STATED ON THE INVOICE AND SHOULD
BE SHARED WITH THE CUSTOMER. ANY DEALER INSTALLED OPTIONS,
CONVERSION/UPFIT PACKAGE, GENERAL MOTORS PROTECTION PLAN OR OTHER EXTRA
CHARGE ITEMS WILL BE DELIVERED AT A PRICE AGREED UPON BETWEEN THE
CUSTOMER AND THE DEALER.
DEMO AND DRIVER EDUCATION UNITS WITH A MINIMUM OF 2,500 MILES AND A
MAXIMUM OF 7,500 MILES:
- VEHICLES ARE DELIVERED AT THE SUPPLIER PRICE ON THE VEHICLE
INVOICE LESS A DISCOUNT NEGOTIATED BY THE DEALER AND THE PURCHASER.
PROGRAM TIME PERIOD (DELIVERED):
OCTOBER 1, 2005 THROUGH SEPTEMBER 30, 2006
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
ELIGIBLE MODELS:
ALL NEW AND UNUSED 2005, 2006 AND 2007 MODEL YEAR BUICK,
CADILLAC, CHEVROLET, HUMMER AND PONTIAC-GMC PASSENGER CAR AND
LIGHT DUTY TRUCK MODELS *EXCLUDING HUMMER H1*.
10) Weekly Constraint/Production News – UPDATED
Corvette Production Weekly Constraints – 1/19/06
This information will also be included in my weekly newsletter under the topic, Kens Newsletters.
Weekly Constraint/Production News - UPDATED
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 1/19/06
2006 CORVETTE
01145, QX3 Chromed Wheels, 0
This option has not been orderable until now. However, no orders will be approved this week with this option
Orders approved this week will be produced the week of 2/13/06 – 2/19/06
2006 CORVETTE Z06
00602 Corvette Z06 QL9 Polished Wheels, 0
This option is being constrained based upon supplier capacity.
Orders approved this week will be produced the week of 2/13/06 – 2/19/06
Thanks for taking the time to read my weekly newsletter and thanks for your business!
With temperatures in the 50’s we are driving our Corvettes and riding our Harleys!
I am sorry that I haven’t published a full newsletter for weeks.
We are making several changes here at the dealership. Couple that with all of the crazy programs and announcements from GM and we have been busy.
Things appear to be settling down now and GM is intent on being a strong corporation in the future. I am confident that the Chevrolet will continue in it’s leadership position.
By the way: Chevrolet is the #1 selling car and truck in America!!! We have successfully unseated Ford for the first time since 1986.
We are extremely proud to be part of this winning team and more so proud that we have been in business since 1953, the same year that the Corvette was introduced!!
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, Dealer
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:
Bruce Kingsbury, 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 (everything updated!)
1) Production News
2) Corvette Parts and Accessories
3) Pricing Updates
4) 2006 Corvette Order Guides
5) 2006 Corvette Z06 Allocation Information
6) Distribution System Explained
7) Special Purchase/Sale 2005 Corvette Convertibles
8) Chevrolet Incentives
9) GM Employee & Supplier Plan
10) Weekly Constraint/Production News
1) Production News
Subject: Corvette Production Update
Message: CHM20060306
From: Chevrolet Marketing
Date: January 2, 2006
Subject: Corvette Production Update
Administrative message CHD20050187 dated 12/15/2005 advised you of potential actions that might be necessary to manage wheel supply issues for Corvette and Z06. We are pleased to inform you that with the dedicated efforts of several GM teams we have not and likely will not in the future need to change wheel options on any 2006MY Corvette orders. Although still constrained, we expect to be able to offer the full selection of painted and polished wheel options. The much anticipated Chrome wheel option, however, must continue postponement until later this model year.
Order Guides, GM AutoBook and Order Workbench will therefore remain unchanged relative to wheel options.
We sincerely apologize for the inconvenience and confusion that this situation may have caused you or your customer(s) but are obviously pleased with the positive resolutions to the issues outlined in the previous communication.
Subject: Corvette Production Update
Message: CHD20050187
To: All Corvette Dealers
From: VSSM Order Fulfillment
Date: December 15, 2005
Subject: Corvette Production Disruptions
Coupe & Convertible Production
The wheel supply for Corvette has experienced significant disruption. Unfortunately, this situation has caused GM to make several adjustments affecting wheel options, production volumes and production schedules. Many orders may need to have wheel selections changed based on wheel availability. Since timing is critical, and current wheel supply is uncertain, Order Fulfillment / Distribution is unable to follow the normal process of returning orders to dealers for necessary changes. Regrettably, polished wheels will not be available from our new supplier. This will force us to change all orders scheduled to be built after 1/3/06 to Silver Painted wheels. The much anticipated Chrome wheel option will be postponed until late spring production. Any substitution of a lower cost wheel will be reflected in a reduced MSRP and invoice. Additionally, overall wheel availability may delay production dates of "In System" orders.
Z06 Production
The impact to Z06 production is still undetermined as is the future availability of the polished wheel option. Some orders may need to have wheel selections changed based on wheel availability. As is the case with Coupe & Convertible, wheel availability may delay production dates of "In System" orders. Dealers will be advised of their future Z06 allocation outlook as soon as production schedules can be solidified.
Summary
As orders are changed, Order Fulfillment will notify affected dealers via GM Messenger. Order Guides, GM AutoBook and Order Workbench will be changed as soon as practical to reflect the change in wheel options.
We sincerely apologize for the inconvenience and disappointments this situation may cause you and your customer(s).
2) Corvette Parts and Accessories
We offer a complete line of Genuine Corvette Accessories at dealer wholesale prices.
Without: Sales Tax
Without: Exhorbidant shipping and handling fees
Order many items online here:
www.fichtnerchevrolet.com
Go to the parts link on our website!
Or call Robert or Thomas in our parts department toll free at 800-234-5284
3) Pricing Updates
2006 Model Year Chevrolet Price Repositioning Effective 1/11/06
Message: CHF20060042
Chevrolet will announce price repositioning on 2006 model year Suggested Retail prices effective with models produced on or after January 11, 2006. The revised Suggested Retail prices will affect the Aveo, Malibu, Malibu Maxx, Monte Carlo, Impala, Cobalt, Corvette and HHR, Trailblazer, SSR, Colorado, Equinox, Silverado, Tahoe, Suburban, Avalanche, Uplander and Express. Dealer invoice amounts will change accordingly.
Dealer price schedules will be available in GM DealerWorld under Sales &/Or F&I Tabs effective January 10, 2006. Reference administrative message #VSF20040006 (dated February 26, 2004) for more information regarding this web site.
In the Locate Vehicle module of Order Workbench, vehicles invoiced prior to January 11, 2006 will continue to show the original non-adjusted MSRP, Dealer Invoice and GMS prices. Please refer to the appropriate regional incentive program message to determine the amount of any dealer cash adjustment.
Pricing will be available in the Order Workbench Configure a New Vehicle process at 8:00 AM EST Thursday January 12, 2006. The revised pricing will be reflected in GM Autobook with data version 108.2 which will be available for web download to stand-alone subscribers on Wednesday January 11th and available to all GM Access users on Friday morning January 13, 2006.
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.
Chevrolet reserves the right to discontinue or change prices at any time, without written notice. All rights reserved.
4) 2006 Corvette Order Guides
Order guides are available here.
Click here for the 2006 Coupe:
http://temp.corvetteforum.net/c5/ken.../2006coupe.pdf
Click here for the 2006 Convertible:
http://temp.corvetteforum.net/c5/ken...onvertible.pdf
Click here for the 2006 Z06:
http://temp.corvetteforum.net/c5/ken...rder_guide.pdf
5) 2006 Corvette Z06 Allocation Information
Corvette Z06 Allocation Plan
The 2006 Corvette Z06 allocation plan is a 2 phase process. While the details of each phase are shown below, there are some key points worth noting. First, not every Certified Corvette Dealer will receive a 2006 Corvette Z06 model. The Z06 model will have its own allocation group - Z06. And, Corvette Z06 retail production will be allocated to eligible Corvette Dealers using the most current 52-week total retail Corvette sales.
• Dealers will be able to view current month allocation plus one month outlook
• Each Dealer will be mailed a six month allocation outlook
• In December, a four month outlook will be communicated based on the most current 52-week sales history
• In April 2006, distribution will provide the balance of model year outlook based on the latest 52-week sales history for buildout
• The above steps were established to discourage over commitment/selling
Phase I Details
• Dealers will be placed in Tiers based on their 52 weeks of retail Corvette sale
history (June 2004 - May 2005) for the first 3 consensus cycles.
- Tier 1 will be comprised of the 25 largest volume Corvette Dealers
- Tier 2 will include the largest 125 Corvette Dealers
- Tier 3 will expand to include the largest 300 Corvette Dealers
• Initial consensus:
- June 2005 (for production week 33)
- Exclusively to Tier 1 Dealers using the June 2004 - May 2005 sales history
• Second consensus:
- July 2005 (for production weeks 34 - 36)
- Exclusively to Tier 1 & 2 Dealers based on the launch sales data
• Third and final Phase I consensus:
- August 2005 (for production weeks 37 - 40)
- Distributed to Tier 1, 2 & 3 Dealers
• Consensed allocations will be "protected", so that Dealers cannot accidentally
loose their allocations. Pattern Z06 orders will be created as necessary during
weekly DOSP cycles.
Phase II Details
• Eliminates the assignment of Dealer Tiers. All Certified Corvette
Dealers with a June 2004 - May 2005 sales history will be comprehended
in the balance of allocation calculations.
• The allocation determined by the same formula in phase 1
• Begins with the September 2005 consensus (for production weeks 41 - 45)
• Due to the limited production of the Z06 model there will be no
guarantee that each Certified Corvette Dealer will receive allocation
for a Z06 model
• Consensed allocations will continue to be "protected", from accidental
loss. Pattern Z06 orders will be created as necessary during weekly
DOSP cycles.
• Z06 will not qualify for PEP, but will be eligible for EVP Drive & Buy
and GMS/Supplier when the current incentive program expires
Don’t be misled by your dealer!
Please note that EVERY Chevrolet dealer received a letter from the Corvette Marketing Team dated June 15, 2005.
Before you place an order and give a deposit to your dealer of choice based upon what they tell you, ask to see this letter!!!!
Have a successful day,
Ken Fichtner
Fichtner Chevrolet
Here’s what the letter says:
XXXXXX
XYZ Chevrolet
123 Main Street
Anywhere, MT XXXXX
Attention: Dealer Operator and New Car Sales Manager
Subject: Corvette Z06 Allocation Projection
An integral part of the 2006 Corvette Z06 distribution plan is to provide an extended allocation projection to all eligible Corvette dealers. This is a projection and not a commitment, but is intended to assist dealers in managing customer expectations in line with dealer allocation.
Below is your dealership’s projected allocation of Z06 through December 2005 production. A second extended projection will be provided in December. Please keep in mind that this allocation projection is based on an estimated production schedule and therefore must continue to be considered as a projection and is not to be considered an absolute commitment.
Your Z06 Estimated Allocations:
July August September October November December
# # # # # #
If a dealer chooses not to consent to their Z06 allocation that allocation will be redistributed to another eligible dealer during the variance resolution and will not be rolled forward nor will it be converted to regular Corvette allocation.
Note: Complete details of the Z06 Distribution Plan are available in Chevylaunch.com
CORVETTE MARKETING TEAM
6) Distribution System Explained
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.
7) Special Purchase and Sale on 2005 Corvette Convertibles
New 2005 Convertibles – I need to sell them!!!!
We were able to purchase a couple of extra Convertibles from another dealer.
Here’s what we have:
2005 Corvette Convertible
Preferred Equipment Pkg 1SB
OnStar Communications
AM/FM CD with Navigation
XM Satellite Radio
Special Paint Charge
Automatic OD Transmission
LeMans Blue Metallic
Beige Convertible Top
Cashmere Leather Trim
Odometer – 2 miles
MSRP $58120.00
Make an offer!
We will honor GM Employee, Supplier, and GM in the Driveway Certificates on this car!
NO SALES TAX!!! (if titled and licensed in Montana)
2005 Corvette Convertible
Preferred Equipment Pkg 1SB
OnStar Communications
AM/FM CD with Navigation
Power Convertible Top
Magnetic Selective Ride Control
Polished Aluminum Wheels
XM Satellite Radio
Automatic OD Transmission
Daytona Sunset Orange Metallic
Black Convertible Top
Ebony Leather Trim
Odometer – 341 miles
MSRP $62805.00
Our cost with freight to the dealership $57216
Make an offer!
We will honor GM Employee, Supplier, and GM in the Driveway Certificates on this car!
NO SALES TAX!!! (if titled and licensed in Montana)
We can easily modify these Corvettes by adding any number of accessories for you including, but not limited to: Exhaust system, suspension package, color keyed interior and exterior items, Lloyds mats, front bra, etc.
Email me before they are gone!
kenfichtner@fichtnerchevrolet.com
8) Chevrolet Incentives
Click here for all of the details!
http://temp.corvetteforum.net/c5/ken...ry_21_2006.pdf
9) GM Employee and Supplier Plans
Update on Employee/Supplier/GM in the Driveway Plans
CORPORATE PROGRAM NUMBER: 06-06
CORPORATE PROGRAM NAME: 2006 MODEL YEAR GM EMPLOYEE PURCHASE PROGRAM
PROGRAM DESCRIPTION:
GM NEW VEHICLE PURCHASE PROGRAM:
GM NEW VEHICLE PURCHASE PROGRAM PROVIDES A SPECIAL VEHICLE PRICE
TO PROGRAM PARTICIPANTS (I.E. GM EMPLOYEES, RETIREES, SURVIVING
SPOUSES AND ELIGIBLE FAMILY MEMBERS) WHEN AN ELIGIBLE VEHICLE IS
PURCHASED FROM A PARTICIPATING DEALER AT THE PRICES DESCRIBED
BELOW PLUS APPLICABLE TAX, TITLE AND REGISTRATION FEES.
GM EMPLOYEE ORDER/OUT OF STOCK PURCHASE PROGRAM (GMS):
-NEW UNITS INCLUDING UNITS USED AS DEMO AND DRIVER EDUCATION LOANERS
WITH A MAXIMUM OF 2,499 MILES, BUT EXCLUDING APPROVED CONVERTED
UNITS, ARE DELIVERED TO AN ELIGIBLE PROGRAM PARTICIPANT FROM
PARTICIPATING DEALER STOCK AT AN AMOUNT (I.E., RETAIL DEALER INVOICE
TOTAL LESS HOLDBACK AND ANY GM CO-OP ADVERTISING* AMOUNT PLUS $75)
DISPLAYED IN THE GMS FIELD ON THE GM VEHICLE INVOICE.
-DEMO AND DRIVER EDUCATION UNITS WITH A MINIMUM OF 2,500
MILES AND A MAXIMUM OF 7,500 MILES:
VEHICLES ARE DELIVERED FROM PARTICIPATING DEALER STOCK AT AN
AMOUNT (I.E., RETAIL DEALER INVOICE TOTAL LESS HOLDBACK AND
ANY GM CO-OP ADVERTISING* AMOUNT PLUS $75) DISPLAYED IN THE
GMS FIELD ON THE VEHICLE INVOICE LESS A DISCOUNT NEGOTIATED
BY THE DEALER AND THE CUSTOMER.
* IDENTIFIED AS ACCOUNT 65A ON THE GM VEHICLE INVOICE.
GM COMPANY OWNED VEHICLE PURCHASE PROGRAM (PEP):
GM COMPANY OWNED VEHICLE PURCHASE PROGRAM PROVIDES
SPECIAL PRICING TO PROGRAM PARTICIPANTS (E.G., GM EMPLOYEES,
RETIREES, SURVIVING SPOUSES AND DEPENDENT CHILDREN UNDER THE AGE
OF 25) ON UNITS PREVIOUSLY USED IN THE GM COMPANY PRODUCTION
EVALUATION PROGRAM AS FOLLOWS:
PEP (GMU) UNITS ARE INVOICED AT MODEL, OPTION AND DESTINATION
FREIGHT (DFC) PRICES IN EFFECT ON THE DATE OF THE VEHICLE ORDER
LESS A MILEAGE DISCOUNT AND EXCLUDING HOLDBACK AND WHOLESALE
FLOORPLAN. THE ELIGIBLE PROGRAM PARTICIPANT PAYS GM INVOICE
TOTAL FOR THE VEHICLE PLUS APPLICABLE TAX (INCLUDING LUXURY TAX),
TITLE AND REGISTRATION FEES.
PROGRAM TIME PERIOD (DELIVERED):
OCTOBER 1, 2005 THROUGH SEPTEMBER 30, 2006
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
ELIGIBLE MODELS:
ALL NEW AND UNUSED 2005, 2006 AND 2007 MODEL YEAR BUICK, CADILLAC,
CHEVROLET, HUMMER AND PONTIAC-GMC PASSENGER CARS AND LIGHT DUTY
TRUCK MODELS **EXCLUDING HUMMER H1**.
NOTE: CERTAIN MODELS MAY BE PERIODICALLY EXCLUDED. IN THOSE
INSTANCES, DEALERS ARE NOTIFIED THROUGH AN ADDENDUM TO THIS
ADMINISTRATIVE MESSAGE.
PROGRAM NUMBER: 06-06ADD
PROGRAM NAME: ADDENDUM TO THE 2006 MODEL YEAR GM EMPLOYEE
PURCHASE PROGRAM
THIS IS AN ADDENDUM TO PROGRAM NUMBER 06-06-*
EFFECTIVE OCTOBER 1, 2005, THE 2005 CORVETTE IS NO LONGER RESTRICTED
FROM THE GM EMPLOYEE PURCHASE PROGRAM.
THE FOLLOWING VEHICLE IS RESTRICTED FROM THE "GMS" PORTION OF THE
GM EMPLOYEE PURCHASE PROGRAM:
CHEVROLET: RESTRICTION EFFECTIVE DATE:
2006 CORVETTE Z06 SEPTEMBER 7, 2005
SEE PROGRAM 06-06-* FOR COMPLETE DETAILS.
THIS IS THE END OF PROGRAM NUMBER 06-06ADD.
CORPORATE PROGRAM NUMBER: 06-10
CORPORATE PROGRAM NAME: 2006 MODEL YEAR GM SUPPLIER DISCOUNT PROGRAM
PROGRAM DESCRIPTION:
IF THE GM DEALER ELECTS TO PARTICIPATE IN THE PROGRAM, GENERAL MOTORS
SUPPLIER DISCOUNT PROGRAM ALLOWS ELIGIBLE EMPLOYEES OF GM SUPPLIERS
TO PURCHASE ELIGIBLE GM VEHICLES AT A GM ESTABLISHED PRICE (I.E., 4.5%
ABOVE THE "GMS PRICE"). BOTH THE GMS PRICE AND SUPPLIER PRICE ARE
STATED ON THE INVOICE. ANY DEALER INSTALLED OPTION, CONVERSION/UPFIT
PACKAGE, GENERAL MOTORS PROTECTION PLAN OR OTHER EXTRA CHARGE ITEM WILL
BE DELIVERED AT A PRICE AGREED UPON BETWEEN THE SUPPLIER AND THE DEALER.
DEMO AND DRIVER EDUCATION UNITS WITH A MINIMUM OF 2,500 MILES AND A
MAXIMUM OF 7,500 MILES:
VEHICLES ARE DELIVERED AT 4.5% ABOVE THE "GMS PRICE" ON THE VEHICLE
INVOICE LESS A DISCOUNT NEGOTIATED BY THE DEALER AND THE PURCHASER.
PROGRAM TIME PERIOD (DELIVERED):
OCTOBER 1, 2005 THROUGH SEPTEMBER 30, 2006
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
ELIGIBLE MODELS:
ALL NEW AND UNUSED 2005, 2006 AND 2007 MODEL YEAR BUICK, CADILLAC,
CHEVROLET, HUMMER AND PONTIAC-GMC PASSENGER CARS AND LIGHT DUTY
TRUCKS **EXCLUDING HUMMER H1**.
NOTE: CERTAIN MODELS MAY BE PERIODICALLY EXCLUDED. IN THOSE
INSTANCES, DEALERS ARE NOTIFIED THROUGH AN ADDENDUM TO THIS
ADMINISTRATIVE MESSAGE.
PROGRAM NUMBER: 06-10ADD
PROGRAM NAME: ADDENDUM TO THE 2006 MODEL YEAR GM SUPPLIER
DISCOUNT PROGRAM
THIS IS AN ADDENDUM TO PROGRAM NUMBER 06-10-*
EFFECTIVE OCTOBER 1, 2005, THE 2005 CORVETTE IS NO LONGER RESTRICTED
FROM THE GM SUPPLIER DISCOUNT PROGRAM.
THE FOLLOWING VEHICLE IS RESTRICTED FROM THE GM SUPPLIER DISCOUNT
PROGRAM:
CHEVROLET: RESTRICTION EFFECTIVE DATE:
2006 CORVETTE Z06 SEPTEMBER 7, 2005
SEE PROGRAM NUMBER 06-10-* FOR COMPLETE DETAILS.
THIS IS THE END OF PROGRAM NUMBER 06-10ADD.
CORPORATE PROGRAM NUMBER: 06-13
CORPORATE PROGRAM NAME: 2006 MY "GM IN THE DRIVEWAY" PROGRAM
PROGRAM DESCRIPTION:
THIS IS THE GENERAL MOTORS REFERRAL PROGRAM WHERE SELECT
EMPLOYEES AND RETIREES CAN PASS ALONG TO FRIENDS, NEIGHBORS AND
SELECT FAMILY MEMBERS AN AUTHORIZATION NUMBER WHICH ALLOWS THEM
TO PURCHASE OR LEASE AN ELIGIBLE NEW AND UNUSED GM MODEL DETAILED
IN GUIDELINE NUMBER 4 BELOW AT A FORMULA PRICE.
IF THE GM DEALER ELECTS TO PARTICIPATE IN THE PROGRAM, THE
AUTHORIZATION NUMBER WILL ALLOW THE CUSTOMER TO PURCHASE THE ELIGIBLE
VEHICLE AT THE SUPPLIER DISCOUNT PROGRAM PRICE (I.E., 4.5% ABOVE THE
"GMS PRICE"). THE SUPPLIER PRICE IS STATED ON THE INVOICE AND SHOULD
BE SHARED WITH THE CUSTOMER. ANY DEALER INSTALLED OPTIONS,
CONVERSION/UPFIT PACKAGE, GENERAL MOTORS PROTECTION PLAN OR OTHER EXTRA
CHARGE ITEMS WILL BE DELIVERED AT A PRICE AGREED UPON BETWEEN THE
CUSTOMER AND THE DEALER.
DEMO AND DRIVER EDUCATION UNITS WITH A MINIMUM OF 2,500 MILES AND A
MAXIMUM OF 7,500 MILES:
- VEHICLES ARE DELIVERED AT THE SUPPLIER PRICE ON THE VEHICLE
INVOICE LESS A DISCOUNT NEGOTIATED BY THE DEALER AND THE PURCHASER.
PROGRAM TIME PERIOD (DELIVERED):
OCTOBER 1, 2005 THROUGH SEPTEMBER 30, 2006
ELIGIBLE MODELS/REQUIRED OPTIONS/ORDER TYPES AND ALLOWANCES:
ELIGIBLE MODELS:
ALL NEW AND UNUSED 2005, 2006 AND 2007 MODEL YEAR BUICK,
CADILLAC, CHEVROLET, HUMMER AND PONTIAC-GMC PASSENGER CAR AND
LIGHT DUTY TRUCK MODELS *EXCLUDING HUMMER H1*.
10) Weekly Constraint/Production News – UPDATED
Corvette Production Weekly Constraints – 1/19/06
This information will also be included in my weekly newsletter under the topic, Kens Newsletters.
Weekly Constraint/Production News - UPDATED
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 1/19/06
2006 CORVETTE
01145, QX3 Chromed Wheels, 0
This option has not been orderable until now. However, no orders will be approved this week with this option
Orders approved this week will be produced the week of 2/13/06 – 2/19/06
2006 CORVETTE Z06
00602 Corvette Z06 QL9 Polished Wheels, 0
This option is being constrained based upon supplier capacity.
Orders approved this week will be produced the week of 2/13/06 – 2/19/06
Thanks for taking the time to read my weekly newsletter and thanks for your business!
Last edited by Ken Fichtner; 01-28-2006 at 12:35 PM.
01-24-2006, 06:05 AM
#4
Racer
Member Since: Dec 2005
Location: Boca Raton FL
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I'm at status code 3400 as of a few days ago. Apparently that means my order is being filled without any changes. It's a VY LT2 coupe, stick, Z-51 with polished wheels. It's due to be built next week and I'm getting very excited! 
01-24-2006, 09:54 AM
#5
Le Mans Master
Thread Starter
Member Since: May 1999
Location: Laurel MT
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bobjones,
I will take a look at the problem and correct it. Thanks for the heads up.
Crisis,
The Z51 package WAS NOT constrained this week! Any dealer with an allocation could order a Corvette with this option. Your order number JVDCP1, was placed with your dealer's allocations on 1/19 and approved by GM on 1/23/06. Your order will be produced the week of 2/13 thru 2/19/06.
Velocity Steve,
Without your order number I cannot view your order. But if your order has reached an event code of 3400 it will be produced as ordered this week! Congrats.
Hey guys don't forget us for a GMPP as well as any Corvette parts and accessories you need!
Ken Fichtner
I will take a look at the problem and correct it. Thanks for the heads up.
Crisis,
The Z51 package WAS NOT constrained this week! Any dealer with an allocation could order a Corvette with this option. Your order number JVDCP1, was placed with your dealer's allocations on 1/19 and approved by GM on 1/23/06. Your order will be produced the week of 2/13 thru 2/19/06.
Velocity Steve,
Without your order number I cannot view your order. But if your order has reached an event code of 3400 it will be produced as ordered this week! Congrats.
Hey guys don't forget us for a GMPP as well as any Corvette parts and accessories you need!
Ken Fichtner
