I love how YouTube has now become a reference /source for important information. I guess most people weren’t taught in school how to evaluate sources

 

don't let grumpy old guys spoil your excitement.

forums are for, you know, posting, and discussion.

agree with Savoy, why steal any steam from the base model? use this time to refine the systems in the Z06/Zora/GS/ERay/whatever, then release as the base model and subsequent model's begin to lose a little of their luster.

(then I'll buy your base stingray for pennies on the dollar AND order a Z06...)

 

The only real reason to delay the Z06 is brisk Stingray sales. Adding the Z06 to the line would further push back Stingray deliveries.

 

He didn’t say it would be $200 million more profit. It will be 200 million more revenue with the corresponding incremental profit which will be more than that of the base model.

Any smart business person would do it. Think, why did they introduce the convertible when they had already sold out the whole years production? According to your thinking, they should and would not have done it, and yet they did. That’s right, they wanted more revenue and profit.

 

But isn’t it possible some (some, not all) Z06 buyers would purchase a Base or Z51 to hold them over until the Z06 becomes available, then trade for the Z06 when it becomes available? For those customers, GM sold two C8’s (one base and one Z06). In that scenario, holding out to release the Z06 equates to selling two automobiles (not just one)...

 

the zo6 will end up going for between $140k - $ 160K, and to maintain and keeps the stingray price competitive
the zo6 base price is $85k, GM will probably build the 3lz model first ($40k)
plus dealer fees tax mark-ups projected price $140k -$160k
Sign me up I would be honored to pay $150k for the zo6, mark my word, hell I paid over $100k for my c8 stingray and it's worth every dollar

 

GM knows how it's target market spends it's money historically and I'm sure they account for a certain percentage of base to higher trim model buys. In the same breath I'm sure they account for the higher tier only buyers as well. The question is are they going to forgo those higher trim buys to keep building for a market they are already making money from. Doesn't make any sense to me to not capture those buyers as well.

 

Gm may be dealing with the issue of which gasoline engine to use that won't be even harder to handle than the C7 Z version, while still trying to get it made before many of us senior citizens can still drive, all before it is out dated by an electric engined competitor.

 

The 2020 base model price is ~$2K more than the 2019 C7 car.. I would like to see the Z06 be ~$2k more than the 2019 Z06. I did ask Santa if he could get me a Z06 for next Christmas and he told me to look at he corvetteforums. ha ha

 

I was speaking of REVENUE, not PROFIT (I never said the word "profit", that's YOUR assumption)..
The math really is easy...GM SELLS the Stingray for $59,995. They will probably sell the Z06 for $85,000 (likely more but for the purpose of the story). I used the word "net" in my post, not sure why you ignored it.
The point is that the Z06/ZR1/etc ARE higher revenue/profit cars than the Stingray. There's a reason that Porsche is the most profitable car company in the world...and a big part of that is the 23 versions of the 911 they make and sell. All of which cost MORE than the 911 Carrera t.

 

That has already happened. There are plenty of guys on this forum WITH C8's that have deposits (or their names on a list) for a Z06.

 

I watched the video and it makes sense. People don't seem to understand how rough the C8 release has been. Between the strike, Covid, part shortages, holidays, etc GM only produced roughly half the C8's they anticipated. It is way below previous Corvette rollouts. There are people that have waited 9-12+ months for a C8 and still don't have their car.

GM is probably a good 9-12 (maybe even 18 months) to catching up with demand and some of you guys act like the Z06 is produced in a different plant/line than the base C8. It's not. I just don't see GM having the capacity to start building Z06 models until they can get a full more year of base cars produced. It's possible we see a Z06 in 2022, but I am guessing it would be the second half of the year for first deliveries. Seems to align with what he is saying in the video.

Anyone thinking the Z06 will start getting built and shipped in the next 6 months is smoking something powerful. And if you are not already on a list with a one of the big forum sponsors within the first 100-200 names on the list for a Z06 your probably looking at 2024 and beyond. Most people got on the list 12-18 months ago.

Good luck.

 

People are literally doing this. I'm not saying they would push off the z06, but unless they can keep the same production on stingray (which is already backordered by probably a year) and produce the z06, then it doesn't make sense to do it right this second and will just push them further in a hole and anger more stingray buyers. Along with that, some that maybe were going to get a 2021 to wait for the Z06 would then back out of their orders. Not that that's a ton of people, but it's probably more than you would think.

 

This makes sense, if they can keep up production on both. They are already behind on stingray due to the strike and then the halt in production last year, compounded by not having enough components at times to run a full 2 shifts just for the stingray (I believe this last part may finally be under control).

 

It is pretty clear that some of the posters are STEM guys and not finance guys.

 

First off "net GM $200 million" is absurd as the Z06 will actually cost GM more money to produce than the base C8. Additionally, I'm not surprised by the delay as I mentioned this before in another post. With demand where it is, they could easily delay the Z06 to 2023 or possibly 2024. How much money do you think it costs to design, test and produce an all new model? As long as GM continues to sell more than they can produce, delaying the next variant makes sense. They could milk this C8 platform for 10 years+ without the added cost of changing to a brand new C9 in 6-8 years.

 

The money to design has already been done, they are already testing it. All that money is out the door. it is a sunk cost. The sooner you get money flowing in the door, the sooner you get the return on the investment. $200 million is the revenue. They will get better gross margin on Z06 than the base, so the more of your revenue at the higher margin, the better it is.

 

Its quite obvious many people posting here do not understand these simple fundamentals.

 

Thinking the same thing. Technology gets old fast, and emissions regs are only getting more stringent...And GM has every incentive to release higher margin product, like the new Z and ZR1 as quickly as possible. I would therefore be shocked if the new Z is not released for sale in the '22 model year.

 

And what you guys fail to realize is the money has already been sunk into the base model car (which is a much higher volume seller than the Z06) and GM is grossly behind their targeted production numbers. It is only logical that everything else will slip. You gonna tell people the wait time to get a C8 is going to be 18-24 months because Z06 owners take priority? The Z06 exists because the base model Corvette sells at such a high volume to allow for it's existence.