Yes, not arguing the short term business model they have now at all, just what they might be aiming for in the future. Moving to such a model wouldn't be an overnight endeavor obviously.

Let me lay down a couple of facts to help show this point:

1. The Porsche 911 is also built in one single factory, the Zuffenhausen factory at Porsche Headquarters.
2. In 2019, Porsche produced over 37,000 911's. Mind you, this is international sales, though. Regardless, the numbers remain the same.
3. The Porsche 911 is one of the most profitable cars in the world, which has something around an INSANE 47%-49% profit margin.

So that said, GM may have a great formula, but it ain't near as great a formula as Porsche has for the 911.

 

Yeah but GM is not Porsche. And the Corvette is still a Chevy. If GM were to spin Corvette off as its own separate high end luxury sports car/SUV brand I could see them trying to move more upscale. You would need better trained Corvette staff and repair shops. You would have to offer Corvette loaners. Part of buying a Porsche is not just the car, but the entire experience and how your treated after sale.

When I had to take my Corvette in for maintenance and a repair under warranty I had to fight like hell just to get a loaner and they gave me a Malibu that had been smoked in.

 

Great point about the experience you get with Porsche vs GM - regardless of the cost of the car.

A similar thing is playing out now with Genesis and Hyundai. They're trying to spin off Genesis as this premium luxury brand, yet you still have to go to a Hyundai dealership where they're selling these $70k cars next to $15k basic Hyundais.

 

you are correct. The worst part about owning a corvette is the crap shoot of dealerships. Seems like most dealerships don’t know how to work on these cars and even if they do, they have 1 mechanic that is their “corvette specialist”. Everyone else can barely change the battery out on a pickup truck. They don’t keep up with bulletins, recalls, etc. it’s a very big contrast to dealing with an import luxury brand. Now there are some great corvette mechanics and great dealerships, but they are few and far between. Gm should move corvette to Cadillac dealerships. They might not be as good as the other luxury brands, but they must be better than bringing your corvette to a cobalt specialist.

 

Your placing too much on the dealer experience if you believe this is any meaningful part of that crazy profit margin. It isn’t. Have you experienced Porsche ownership versus a brand as simple as Lexus? They are VERY close in comparison in what the dealer experience is like. Porsche is nothing more than a luxury brand same as Lexus, BMW, Merc.

The business model does not and likely should not be identical. Corvette can and should still offer a higher performing car dollar for dollar than rivals. This doesn’t mean the pricing delta can’t and won’t shrink between Corvette and it’s rivals. The dealer portion of the business model is pretty insignificant. You’d be much better off using build quality and parts quality as a P car vs Corvette business model argument. This is the larger hurdle that must be overcome over time to achieve and justify a higher price. We are already starting to see these interior quality changes.

compare the 3LT C8 versus C6. Only 1 generation separates the two yet they are incredibly night and day different, MUCH more so than just the normal generational improvements one would expect between a a generation or two.

if the upcoming ZORA rumors prove to be true, now more likely as seen in that Australian article that recently came out, consider the following:

You’re talking about a projected $170,000 super Vette that competes with the likes of the best of Ferrari and such. At $170k your getting into the higher level Porsche cars with 911 Turbo money and just over base model McLaren money (570S) for example. If GM believes they can sell this car, then this tells you all you need to know about how heavily they weigh the dealer component here. They are targeting buyers that are well beyond those looking at 911 Carreras.

 

Sorry I’m a noob how does this work exactly? I have a dealer nearby saying they they are waiting for more allocation and that they currently have a car for everyone on their list. Does that mean if I go leave a deposit on their May allocation I’m guaranteed a car to start production in July or August?

 

They’ve been allocating more cars than they’re building. And that’s created a problem that’s compounding. . They underallocated last quarter (November through January)— then jacked allocations in many cases 60% THIS quarter (at MM as example) ...that was too much. Extrapolating published numbers my guesstimate is they’ve been building 400 or 500 fewer cars each month than they’re allocating. This should take us to early August to build out the final Month of this quarter (April).
If they run MY2021 til September 1 they can do another allocation for sure, otherwise, no.

 

I hear you, but disagree that isn’t a “working class dream” anymore...but I agree it may not be an obtainable one. That is largely a result of a highly successful new design compounded by supply and demand...that and Uncle Joe doing everything in his power to ensure inflation skyrockets in the years to come.

 

I really think when GM is ready to switch to 2022 MY some people with matched allocation for 2021 MY will get pushed to 2022.

 

I don’t ever recall anything close to a $3k price increase in the base car between model years, and I don’t expect that this time around either. They strive to keep it as affordable as possible.

Now, large increases in packages and options has happened, and may again. I’m hoping nothing too drastic, as my configuration is already looking to be just under $100k which would be $20k more than I paid for my 2016 C7 Z51.

 

Nobody knows what (if any) allocations will be for May. How many are on their list in front of you? How many allocations did they get in Feb, Mar and Apr? The answer to those questions will tell you what you need to know.

 

The final consensus for 2021 is the first consensus in June so that would not be accurate.

 

the dealer is very odd. He told me they currently have cars for everyone on their list, and are expecting more allocation in May, and currently don’t have any deposits on it. At the same time he’s telling me it’ll be 12-15 months for a car... somethings not adding up. This dealer is around 30th on the nationwide corvette sales list.

 

If the dealer will not give you a direct answer to those questions I posted, that is a huge red flag. Either get them to answer the questions or go elsewhere.

 

it’s fine I have a deposit at MacMulkin currently as a placeholder, I was just trying to see if I could find someone who could get me a car sooner. I was hoping to get a fall delivery instead of winter because I can’t wait to drive the car