Mid-Engine Corvette Expected to Top $150,000
10-04-2014, 11:51 PM
#122
Melting Slicks
Best answer in this thread so far. This will be exactly what GM does. Corvette will become its own brand within GM and as part of that will reduce the number of dealers where it will be sold. No more mom and pop Chevy dealers with 3-5 Corvette allocations per year. The number of dealers selling the "Corvette" brand will probably be limited to under 500 around the country. Maybe even less then that. Each dealer will be required to build a separate facility with service to match the high value of the brand. Limiting the number of dealers per state will make the brand more high end and valuable and differentiate it from Chevrolet. As someone mentioned in a previous post, you don't see much Chevy branding on a Corvette now.
This separation from Chevrolet will lead to the ability to sell a variety of Corvette models, from the front engine-rear drive (and affordably priced) "Stingray" to the mid-engine (and high end) "Zora". The Corvette dealership will then be able to offer better buying experience and servicing tailored to owners much like Porsche, BMW, MB, Audi, Jaguar, etc. It would also give those dealerships the ability to create a unique "Corvette" themed buying environment complete with an apparel and maybe even a custom shop for your ride; something they don't get at a typical Chevy dealer. It would become a "destination" and "experience" rather then just a typical dealership. I could envision all kinds of events being centered around these Vette dealers.
The mid-engine Vette will essential become the "halo car" for the brand to attract customers into the dealership with the "Stingray" being the mainstream model being sold. Much like the 918 is for Porsche and the R8 is for Audi. Cadillac will be doing something similar. Just hope they don't get a "mid-engine Vette" like they did the XLR.
The "New GM" realizes that the current business and branding model is becoming antiquated. You'll see a lot of changes coming in the next few years as GM re-invents itself and its brands. A mid-engine Vette and what it could do for a new Corvette brand makes perfect sense. It's exactly what Corvette would need to launch its own separate identity. Taking it one step further, wouldn't even surprise me to see GM do a Cadillac/Corvette partnership so that in one dealership you could have both high end luxury AND sports cars. That might be thinking too outside the box but I could see it being looked at down the road, especially with Caddy and their "V" models. The only missing link there is Camaro (i.e. Z28 and ZL1). Maybe Chevy still needs those.
Anyways, that's just me two cents on where things might head. Flame away!
I agree, there is a lot of logic in your stated plan. I hope they move this way and will be excited to see it all come to fruition.
10-05-2014, 12:31 AM
#123
Drifting
These dealerships would also become a great place to find/purchase used Corvettes since owners would be trading older ones in for new models. I think Vette owners would feel more comfortable taking their pride and joy to a dealership dedicated to uniquely servicing them then to a typical Chevy dealer.
To me the mid-engine idea will be not just another model but the first step in the process of taking Corvette to the next level and more on par with the high end sports cars it's competing with. I think it's pretty exciting stuff!
10-05-2014, 08:35 AM
#124
Racer
Thanks, I appreciate that. I probably misstated the number of Corvette dealerships there might be. I'd say they would be limited to just the mid to high volume Vette dealers like Kerbeck, Les Stanford, etc that currently sell at least 50 Vettes a year. There might realistically be only 100-150 dealers across the country that could be offered a Corvette franchise based on their current sales.
These dealerships would also become a great place to find/purchase used Corvettes since owners would be trading older ones in for new models. I think Vette owners would feel more comfortable taking their pride and joy to a dealership dedicated to uniquely servicing them then to a typical Chevy dealer.
These dealerships would also become a great place to find/purchase used Corvettes since owners would be trading older ones in for new models. I think Vette owners would feel more comfortable taking their pride and joy to a dealership dedicated to uniquely servicing them then to a typical Chevy dealer.
10-05-2014, 08:38 AM
#125
Melting Slicks
Member Since: Jul 2014
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Best answer in this thread so far. This will be exactly what GM does. Corvette will become its own brand within GM and as part of that will reduce the number of dealers where it will be sold. No more mom and pop Chevy dealers with 3-5 Corvette allocations per year. The number of dealers selling the "Corvette" brand will probably be limited to under 500 around the country. Maybe even less then that. Each dealer will be required to build a separate facility with service to match the high value of the brand. Limiting the number of dealers per state will make the brand more high end and valuable and differentiate it from Chevrolet. As someone mentioned in a previous post, you don't see much Chevy branding on a Corvette now.
This separation from Chevrolet will lead to the ability to sell a variety of Corvette models, from the front engine-rear drive (and affordably priced) "Stingray" to the mid-engine (and high end) "Zora". The Corvette dealership will then be able to offer better buying experience and servicing tailored to owners much like Porsche, BMW, MB, Audi, Jaguar, etc. It would also give those dealerships the ability to create a unique "Corvette" themed buying environment complete with an apparel and maybe even a custom shop for your ride; something they don't get at a typical Chevy dealer. It would become a "destination" and "experience" rather then just a typical dealership. I could envision all kinds of events being centered around these Vette dealers.
The mid-engine Vette will essential become the "halo car" for the brand to attract customers into the dealership with the "Stingray" being the mainstream model being sold. Much like the 918 is for Porsche and the R8 is for Audi. Cadillac will be doing something similar. Just hope they don't get a "mid-engine Vette" like they did the XLR.
The "New GM" realizes that the current business and branding model is becoming antiquated. You'll see a lot of changes coming in the next few years as GM re-invents itself and its brands. A mid-engine Vette and what it could do for a new Corvette brand makes perfect sense. It's exactly what Corvette would need to launch its own separate identity. Taking it one step further, wouldn't even surprise me to see GM do a Cadillac/Corvette partnership so that in one dealership you could have both high end luxury AND sports cars. That might be thinking too outside the box but I could see it being looked at down the road, especially with Caddy and their "V" models. The only missing link there is Camaro (i.e. Z28 and ZL1). Maybe Chevy still needs those.
Anyways, that's just me two cents on where things might head. Flame away!
You may be correct, we have no way of knowing what GM has in mind.
However, consider that because the Corvette is sold through Chevy dealerships, it has a huge service and warranty network already in place. A big plus to buyers and to GM IMO.
I had looked at the Alfa 4C and the closest dealership is 100 miles away. Oil changes, warranty issues and or repairs turn each visit into a road trip. Then consider something major that requires a tow and the costs involved to me/dealership/GM and the turn-around time involved. Not so appealing.
Factor in the expense to GM of opening new dealerships, acquiring the land, building the sales and service building and staffing them. with full time employees.
Corvettes are not a high volume sale, so the down time and lack of productivity (and profits) associated with each Corvette only dealership has to be considered.
GM already has the complete network in place (keeping the Corvette in the Chevrolet dealerships) selling and servicing a much wider line of cars and supposedly having a fully trained Corvette technician in house who, aside from working on just Corvettes can do other profitable things for the dealership's service department.
The idea of a Corvette only dealership sounds appealing (especially to us enthusiasts), but when one starts to factor in the additional costs compared to the returns, the bloom goes off the rose pretty quickly. In fact, such a move could cause GM to abandon the entire Corvette line down the road due to profitability issues.
Just Sayin', sometimes an idea sounds good as long as it stays an idea.
10-05-2014, 07:47 PM
#126
Drifting
No Flames, just something else to consider.
You may be correct, we have no way of knowing what GM has in mind.
However, consider that because the Corvette is sold through Chevy dealerships, it has a huge service and warranty network already in place. A big plus to buyers and to GM IMO.
I had looked at the Alfa 4C and the closest dealership is 100 miles away. Oil changes, warranty issues and or repairs turn each visit into a road trip. Then consider something major that requires a tow and the costs involved to me/dealership/GM and the turn-around time involved. Not so appealing.
Factor in the expense to GM of opening new dealerships, acquiring the land, building the sales and service building and staffing them. with full time employees.
Corvettes are not a high volume sale, so the down time and lack of productivity (and profits) associated with each Corvette only dealership has to be considered.
GM already has the complete network in place (keeping the Corvette in the Chevrolet dealerships) selling and servicing a much wider line of cars and supposedly having a fully trained Corvette technician in house who, aside from working on just Corvettes can do other profitable things for the dealership's service department.
The idea of a Corvette only dealership sounds appealing (especially to us enthusiasts), but when one starts to factor in the additional costs compared to the returns, the bloom goes off the rose pretty quickly. In fact, such a move could cause GM to abandon the entire Corvette line down the road due to profitability issues.
Just Sayin', sometimes an idea sounds good as long as it stays an idea.
You may be correct, we have no way of knowing what GM has in mind.
However, consider that because the Corvette is sold through Chevy dealerships, it has a huge service and warranty network already in place. A big plus to buyers and to GM IMO.
I had looked at the Alfa 4C and the closest dealership is 100 miles away. Oil changes, warranty issues and or repairs turn each visit into a road trip. Then consider something major that requires a tow and the costs involved to me/dealership/GM and the turn-around time involved. Not so appealing.
Factor in the expense to GM of opening new dealerships, acquiring the land, building the sales and service building and staffing them. with full time employees.
Corvettes are not a high volume sale, so the down time and lack of productivity (and profits) associated with each Corvette only dealership has to be considered.
GM already has the complete network in place (keeping the Corvette in the Chevrolet dealerships) selling and servicing a much wider line of cars and supposedly having a fully trained Corvette technician in house who, aside from working on just Corvettes can do other profitable things for the dealership's service department.
The idea of a Corvette only dealership sounds appealing (especially to us enthusiasts), but when one starts to factor in the additional costs compared to the returns, the bloom goes off the rose pretty quickly. In fact, such a move could cause GM to abandon the entire Corvette line down the road due to profitability issues.
Just Sayin', sometimes an idea sounds good as long as it stays an idea.
The way I envision Corvette dealerships would be as a separate building but still within the property of a Chevrolet "mega" dealership. Corvette owners could still get their car serviced at any GM dealer just as I can get my Cadillac serviced at a Chevy, Buick, GMC or Cadillac dealer today. So owners wouldn't have to worry about where they went because GM's dealer network supports all their brands for warrant and normal service.
You're right though in that profitability would play a big role in whether this idea would really fly especially given the small volume (less then 15K units/yr since 2009) that Corvette sales typically generate. I guess it depends on how many dealers are producing the majority of the sales. Is it the 80/20 rule (i.e. 80% of the sales are produced by 20% of the dealerships)? Or is it more like 90/10?
I'm sure GM is doing some thinking regarding how they want to position Corvette in the marketplace just as they are doing now with Cadillac (GM just moved the Cadillac HQ to NYC).