GM Cancels June Allocation
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Pro
Joined: Dec 2006
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From: USA CT
GM Cancels June Allocation
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Jun 4, 2021, 08:27 AM
Platinum Supporting Dealership
Joined: Jul 2004
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From: Nashua NH
Wow, 
. Many have mentioned that this was possible and that 2021 may be NO DIFFERENT THAN 2020. Let me add that 2022 may also be no different. Who doubted the popularity and resale value of the C8? When will the blinders come off and some realize that we are dealing with a Game Changer. A wonderful version at that.
On a side note, until almost everyone worldwide gets inoculated, this POS will continue to wreak havoc as it ......don't continue to look the other way and ignore it. Do your best locally as an example so that the world can move on some day. It isn't over - yet.
. Many have mentioned that this was possible and that 2021 may be NO DIFFERENT THAN 2020. Let me add that 2022 may also be no different. Who doubted the popularity and resale value of the C8? When will the blinders come off and some realize that we are dealing with a Game Changer. A wonderful version at that.On a side note, until almost everyone worldwide gets inoculated, this POS will continue to wreak havoc as it ......don't continue to look the other way and ignore it. Do your best locally as an example so that the world can move on some day. It isn't over - yet.
I've been saying all along and I'll continue to say it: viruses do not know politics, religion, sex, race, sexual orientation, etc. They don't care about Democrats or Republicans, or nationality, etc. They are concerned with one thing and one thing only - reproduction by any means necessary. And yet over the last year, humans have been trying to politicize this virus, chewing on ridiculous conspiracy theories like Skittles, rather than taking the time to educate themselves, and pull their heads out of the sand.
Just because you can't see a killer, doesn't mean a killer doesn't exist. Unfortunately for many people, it takes the death of a loved one who fell victim to a silent killer, to finally wake up and smell the coffee..
Drifting
Joined: Mar 2019
Posts: 1,510
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From: Gwinnett County, GA
Thanks for sharing the news @MarkP
- MY 2021 orders at 3000 status: Good news that..."We are not planning on cancelling any accepted 2021 model year Corvette Stingray orders(event code 3000 and above).
- Can anyone explain how Available Day's Supply allocation methodology will work?
Last edited by Atlantan; Jun 3, 2021 at 04:33 PM.
Burning Brakes
Joined: Nov 2007
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From: Oro Valley, AZ
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Has me wondering, since I am #1 for the 1st 2022 at my local dealer, whether I will get it sooner than originally thought now? Also very curious what the Available Day's Supply allocation is and how will play out.
Last edited by GarryL; Jun 3, 2021 at 04:41 PM.
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What a bummer for so many people...
Here's what the GM memo said (from the link)
Here's what the GM memo said (from the link)
To: All Chevy Dealers, Dealer Principals, General Managers, and Inventory Managers
From: Chevrolet
Subject: Statement MY21 Corvette Production – Withdrawal of June Outlook Guidance
In order to maintain start of production for the 2022 model year Corvette Stingray in late Q3, and as a result of continued unplanned part shortages not related to the industry-wide semiconductor availability issues, General Motors has had to make an adjustment in the number of Corvette Stingrays available for the 2021 model year.
As a result, we are withdrawing our June “Outlook” estimate as published in the most recent allocation guide. We are not planning on canceling any accepted 2021 model year Corvette Stingray orders (event code 3000 and above). Additionally, as we move into the third model year of the mid-engine Corvette, we will evolve to the Available Days’ Supply (ADS) allocation methodology used for all Chevrolet allocation groups, eliminating the need for any special allocation guides.
Q&A:
Q: You have said a few times that you are experiencing temporary part shortages. What parts are affecting production?
A: We’re not going to get into specifics other than to acknowledge this is NOT related to the industry-wide semiconductor shortage.
Q: How many vehicles did you have to remove from the build plan?
A: We do not provide specific volume and production estimates for any of our vehicles.
Q: What does this mean for customers who are below event code 3000?
A: They will have to consider placing an order with the dealer for a 2022 model year Corvette Stingray depending on where they are in the ordering process.
Q: How many customers will have to switch their orders to a 2022 model year Corvette Stingray?
A: Customers are going to have to work with their individual dealer to determine whether they will need to order a 2022 model year Corvette Stingray.
Q: Will MY 22 C8 allocation move to ADS like all other Chevy allocation groups?
A: Yes, for the third model year of the mid-engine Corvette, model year 2022 allocation will evolve into the Available Days’ Supply (ADS) allocation methodology like all other Chevy allocation groups.
From: Chevrolet
Subject: Statement MY21 Corvette Production – Withdrawal of June Outlook Guidance
In order to maintain start of production for the 2022 model year Corvette Stingray in late Q3, and as a result of continued unplanned part shortages not related to the industry-wide semiconductor availability issues, General Motors has had to make an adjustment in the number of Corvette Stingrays available for the 2021 model year.
As a result, we are withdrawing our June “Outlook” estimate as published in the most recent allocation guide. We are not planning on canceling any accepted 2021 model year Corvette Stingray orders (event code 3000 and above). Additionally, as we move into the third model year of the mid-engine Corvette, we will evolve to the Available Days’ Supply (ADS) allocation methodology used for all Chevrolet allocation groups, eliminating the need for any special allocation guides.
Q&A:
Q: You have said a few times that you are experiencing temporary part shortages. What parts are affecting production?
A: We’re not going to get into specifics other than to acknowledge this is NOT related to the industry-wide semiconductor shortage.
Q: How many vehicles did you have to remove from the build plan?
A: We do not provide specific volume and production estimates for any of our vehicles.
Q: What does this mean for customers who are below event code 3000?
A: They will have to consider placing an order with the dealer for a 2022 model year Corvette Stingray depending on where they are in the ordering process.
Q: How many customers will have to switch their orders to a 2022 model year Corvette Stingray?
A: Customers are going to have to work with their individual dealer to determine whether they will need to order a 2022 model year Corvette Stingray.
Q: Will MY 22 C8 allocation move to ADS like all other Chevy allocation groups?
A: Yes, for the third model year of the mid-engine Corvette, model year 2022 allocation will evolve into the Available Days’ Supply (ADS) allocation methodology like all other Chevy allocation groups.
Melting Slicks
Joined: Apr 2015
Posts: 2,353
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Thanks for sharing the news @MarkP
- MY 2021 orders at 3000 status: Good news that..."We are not planning on cancelling any accepted 2021 model year Corvette Stingray orders(event code 3000 and above).
- Can anyone explain how Available Day's Supply allocation methodology will work?
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If an order is at 3000 or higher, it's going to be produced. They just aren't providing the June allocation alotment they had hoped to provide.
Burning Brakes
Joined: Nov 2006
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From: FL & TX
post #2 describes ADS... I don’t know exactly what it means though...
https://www.corvetteforum.com/forums...nstraints.html
https://www.corvetteforum.com/forums...nstraints.html
Melting Slicks
Joined: Apr 2015
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"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."
• 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."
Drifting
Joined: Mar 2019
Posts: 1,510
Likes: 1,328
From: Gwinnett County, GA
post #2 describes ADS... I don’t know exactly what it means though...
https://www.corvetteforum.com/forums...nstraints.html
https://www.corvetteforum.com/forums...nstraints.html
My takeaway was ...Dealer ADS = Total Availability/Dealers Sales Rates.
Where...
- Total Availablity = In Stock + In Transit + In System + Placed Orders + Balance-to-go allocation
- Sales Rate = Average number of Units sold over a period. GM uses 12 months.
GM allocates vehicles to the dealers with the lowest Available Days’ Supply (ADS)
Last edited by Atlantan; Jun 3, 2021 at 05:16 PM.
Race Director
Joined: Jan 2014
Posts: 10,709
Likes: 7,102
From: Fulshear, TX
In other words, this could potentially reward the dealers selling @ MSRP and punish the dealers letting unsold orders sit on the sales floor listed at above-MSRP prices?
Last edited by Kracka; Jun 3, 2021 at 05:07 PM.
Melting Slicks
Joined: Apr 2015
Posts: 2,353
Likes: 779
This all depends on any continuation in parts shortages. The change in the allocation system from a quarterly forecasted method tells me they are protecting the system from any future shortage issues or delays/shutdowns. Unlike the 'Forecasted method', this other 'ADS method' doesnt seem to suffer from or have to be corrected like GM did today as a result of delays, part shortages, unplanned shutdowns.
I could be mistaken in the above, but half understanding the systems... This is what it tells me.
Race Director
Joined: Jan 2014
Posts: 10,709
Likes: 7,102
From: Fulshear, TX
With the plant being shutdown 3 of the past 4 weeks, I'm sure between the April & May allocations they have plenty of cars to finish building by the Labor Day model year cutoff since ~half of the March allocations aren't getting built until July.
Last edited by Kracka; Jun 3, 2021 at 05:25 PM.
