Top 10 cars stuck on dealer lots
03-18-2017, 12:42 PM
#41
Le Mans Master
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I'm sure it will help but dealers keep ordering these like they think it is 2014 or something. If you look at Cargurus it is suprising how many Corvettes have been sitting on dealer lots for 3 months, 6 months, and some even 9+ months. Yet they keep ordering more. Crazy.
When dealers turn down allocations for any car or truck GM doesn't like that and holds it against them. The ordering system is rigged in GM favor not the dealers.
If GM would have stuck to the original 900 Corvette only dealers in 2013 they wouldn't have this problem today with car sitting on lots. There is a reason why the top 100 Corvette dealers sell 80% of the cars because they know what to order and what sells.
Last edited by Corvette ED; 03-18-2017 at 12:43 PM.
03-18-2017, 01:00 PM
#42
I don't think you understand the GM ordering process. On every other ThursdayGM tells each dealer how many cars and trucks they can order and how many of each model and what is on constraint.
When dealers turn down allocations for any car or truck GM doesn't like that and holds it against them. The ordering system is rigged in GM favor not the dealers.
If GM would have stuck to the original 900 Corvette only dealers in 2013 they wouldn't have this problem today with car sitting on lots. There is a reason why the top 100 Corvette dealers sell 80% of the cars because they know what to order and what sells.
When dealers turn down allocations for any car or truck GM doesn't like that and holds it against them. The ordering system is rigged in GM favor not the dealers.
If GM would have stuck to the original 900 Corvette only dealers in 2013 they wouldn't have this problem today with car sitting on lots. There is a reason why the top 100 Corvette dealers sell 80% of the cars because they know what to order and what sells.
03-18-2017, 01:22 PM
#43
Le Mans Master
Gm Global OWNS the China car market. They sell Chevy, Cadillac and, you guessed it - Buick. They have sold more Buick's annually in China than the US. In May (2016) Buick sold 100,864 vehicles, up a whopping 61% compared with May 2015. Buick is the best-selling General Motors brand in China, followed by Wuling-Baojun, Chevrolet and Cadillac. They make and sell 6 models there that we have never heard of here.
Last edited by jimmie jam; 03-18-2017 at 01:25 PM.
03-18-2017, 07:12 PM
#45
Burning Brakes
03-18-2017, 07:24 PM
#46
Racer
03-19-2017, 03:50 PM
#47
Team Owner
I don't think you understand the GM ordering process. On every other ThursdayGM tells each dealer how many cars and trucks they can order and how many of each model and what is on constraint.
When dealers turn down allocations for any car or truck GM doesn't like that and holds it against them. The ordering system is rigged in GM favor not the dealers.
If GM would have stuck to the original 900 Corvette only dealers in 2013 they wouldn't have this problem today with car sitting on lots. There is a reason why the top 100 Corvette dealers sell 80% of the cars because they know what to order and what sells.
When dealers turn down allocations for any car or truck GM doesn't like that and holds it against them. The ordering system is rigged in GM favor not the dealers.
If GM would have stuck to the original 900 Corvette only dealers in 2013 they wouldn't have this problem today with car sitting on lots. There is a reason why the top 100 Corvette dealers sell 80% of the cars because they know what to order and what sells.
03-19-2017, 03:59 PM
#48
Le Mans Master
Dealers get "x" allocations for a model year. They can't wait half way through the MY to order cars...I believe it's a monthly system "quota". If they don't "order" an "allocation" they loose it AND a future allocation next year. That allocation goes to another dealer willing to order the car immediately. It's quite simple.
03-19-2017, 05:47 PM
#52
Melting Slicks
Gm Global OWNS the China car market. They sell Chevy, Cadillac and, you guessed it - Buick. They have sold more Buick's annually in China than the US. In May (2016) Buick sold 100,864 vehicles, up a whopping 61% compared with May 2015. Buick is the best-selling General Motors brand in China, followed by Wuling-Baojun, Chevrolet and Cadillac. They make and sell 6 models there that we have never heard of here.
03-19-2017, 08:44 PM
#53
Le Mans Master
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Finalist 2020 C7 of the Year -- Unmodified
GM knows what they're doing after this long, but I believe all factors mentioned earlier in this thread along with heavy competition from most other mfgs contribute to the slow sales. I also still think if GM wants much higher volume sales of Corvettes, offering an approx 330 to 350HP 6 cyl along with some other downgrades and a base price in the mid $40s would do it WITHOUT cannibalizing much of the existing V8 business.
But isn't rarity at least some of the appeal of driving a Corvette?---I know it is for me
But isn't rarity at least some of the appeal of driving a Corvette?---I know it is for me
03-19-2017, 09:24 PM
#54
Safety Car
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GM is trying to make this transition as smooth as possible and maintain good prices (and goodwill). Look what would happen of they DID NOT do this. As the supply of vettes went down, prices would go up. We would see a resurgence of "local market adjustment" add-on prices. Now THAT'S greed! but by doing it this way GM hopes to keep monthly sales at a steady level. It's a reasonable business decision; Business 101. That isn't greed; it's keeping the supply channel full without encountering the Osborne Effect. https://en.wikipedia.org/wiki/Osborne_effect
03-20-2017, 12:06 PM
#55
Team Owner
267 days of sales in dealer stock is a disaster. This means that almost all the current 2017 production is sitting on a lot somewhere.
40,000 annual sales
110 daily sales (40000/365)
29,260 inventory on lots (267*110)
3,636 monthly production in 11 months (one month downtime) (40000/11)
8 months production sitting on lots (29260/3636)
8 months of production since July, 2016 through Feb, 2017
40,000 annual sales
110 daily sales (40000/365)
29,260 inventory on lots (267*110)
3,636 monthly production in 11 months (one month downtime) (40000/11)
8 months production sitting on lots (29260/3636)
8 months of production since July, 2016 through Feb, 2017
Last edited by CP; 03-20-2017 at 12:11 PM.
03-20-2017, 12:39 PM
#56
It's not "greed" unless you call wanting to sell cars "greed" by itself. And unless you are a civil servant who gets paid by tax dollars, your business is exactly the same, trying to sell as much stuff as you can to maximize your profits and get those bonuses. It's anticipating demand and hoping you are correct. We already know the plant is shutting down for several months starting some time this summer. Nobody will be able to do a factory order during that time. If they want to buy a vette, they'll have to find one on a dealer lot. That means front-loading for the time the factory will be down--potentially four months or more of production.
GM is trying to make this transition as smooth as possible and maintain good prices (and goodwill). Look what would happen of they DID NOT do this. As the supply of vettes went down, prices would go up. We would see a resurgence of "local market adjustment" add-on prices. Now THAT'S greed! but by doing it this way GM hopes to keep monthly sales at a steady level. It's a reasonable business decision; Business 101. That isn't greed; it's keeping the supply channel full without encountering the Osborne Effect. https://en.wikipedia.org/wiki/Osborne_effect
GM is trying to make this transition as smooth as possible and maintain good prices (and goodwill). Look what would happen of they DID NOT do this. As the supply of vettes went down, prices would go up. We would see a resurgence of "local market adjustment" add-on prices. Now THAT'S greed! but by doing it this way GM hopes to keep monthly sales at a steady level. It's a reasonable business decision; Business 101. That isn't greed; it's keeping the supply channel full without encountering the Osborne Effect. https://en.wikipedia.org/wiki/Osborne_effect
03-20-2017, 01:13 PM
#57
When you look at the age of C7 buyers it appears that there will not be many more Corvettes in their future. It appears that the market has peaked out and the factory only produced 2,278 last month compared to 3332 last year according to Automotive News 3-20-17. GM is having excess car inventory problems because sport utilities are the big seller.
03-20-2017, 02:51 PM
#58
Melting Slicks
That's a good point. At 67 I'm not sure how many more new Corvettes will be in my future; probably won't be my choice, depending on health. (no issues today, but nothing is certain) GM has tried to appeal to the younger generation with the C7 and they have likely captured their interest, but it's still a $ issue for many and the 'sportscar' is a not a priority for a lot of them nowadays. The SUV's are killing sedan sales from Chevrolet to Cadillac and doesn't seem to be losing momentum. Add the electrics/hybrids to the mix and it's no longer "business as usual" for many manufacturers. As another post stated, many current C7 owners are not looking to trade up to a new model year just yet when there is not a lot of change in appearance and power and their current ride is reliable.
03-20-2017, 03:24 PM
#59
Le Mans Master
When you look at the age of C7 buyers it appears that there will not be many more Corvettes in their future. It appears that the market has peaked out and the factory only produced 2,278 last month compared to 3332 last year according to Automotive News 3-20-17. GM is having excess car inventory problems because sport utilities are the big seller.
03-20-2017, 06:32 PM
#60
3,636 monthly production in 11 months (one month downtime) (40000/11)
331 corvettes on average per day figuring a 7 day work week. 8 hour a day shifts would yield over 40 an hour coming off the assembly line. I am sure my calculations are based upon bad assumptions. Maybe somebody can correct my math because this seems like a large number of cars.
331 corvettes on average per day figuring a 7 day work week. 8 hour a day shifts would yield over 40 an hour coming off the assembly line. I am sure my calculations are based upon bad assumptions. Maybe somebody can correct my math because this seems like a large number of cars.