- Photo credits Chevrolet

Each Corvette sold for less than $80,000 will make Chevrolet lose money

Chevy is taking a big risk!

31w ago

17.7K

In the United States, the new eighth-generation Corvette has a base price of $59,995. This price is lower than the old generation Corvette, which is good news at first sight. This attractive price should soon increase, according to a General Motors manager, to offset development costs.

Most striking is that the initial price of the C8 Corvette was $79,995, $20,000 higher than the final price! This was the price estimated by many media before Chevrolet surprised us with a significantly lower price. Very curious for a vehicle with an entirely new chassis and a much more expensive rear mid-engine architecture.

If the $79,995 price had been retained, Chevrolet could have already earned an additional $20,000 per base Corvette sold! The brand obviously preferred to attract as many customers as possible rather than focus on profitability. So for now, this means that each base Corvette sold will cause financial losses.

Offering the C8 Corvette at a lower price would also allow fans to better accept the rear mid-engine structure, contrary to the Corvette's historical values. It will also help the brand to produce the car with a minimum delay for this first year. If you are tempted by a C8 Corvette, hurry up because an irreversible price increase is expected!

Photo credits Chevrolet

Photo credits Chevrolet

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Comments (8)

  • More affordable, more customers?

      7 months ago
  • Not selling for a loss and the C7 was a good profit machine. The C8 has to be profitable to get approval to build.

    n Date: Jun 2018 Posts: 12990

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    #2

    11-29-2019, 11:03 AM

    Thanks TtiME for sharing that article. It is “interesting” but worse than click bait. In fact, erroneous ****.

    Folks can avoid clicking on the link to read it for what is says, is that for everyone sold under $79,995, GM loses money, only makes it up on higher optioned $80K+ sold C8’s.

    The C8 was never formally approved for production until a business case (zero emotion, but a dollar and cents analysis) showed the C8 would again be strongly profitable.

    Facts:

    *GM made a net profit of around $2,000,000,000 on C7 sales. Bob Lutz stated that behind pickups and SUV’s, it has beenone of GM’s best financial models in recent times.

    * GM sold around 200,000 C7’s.

    * The profit margin per car for the C8 remains very healthy, on the same order. We will see this once we start to see employee pricing.

    * In the interim, NADA Guides says $55,012 is the dealership price for an entry 2020 C8.

    * There is a nice margin between what GM sells a C8 to its dealers and what it costs GM to make it, e.g., another $5,000 or more.

    Click image for larger version Name: 247DD1EC-95FF-42BF-816E-D21DE73E68A0.jpeg Views: 0 Size: 254.7 KB ID: 92912

      7 months ago
    • I understand why you believe what you do, I just don't believe General Motors or pretty much anything they put out as literature

        7 months ago
    • 2 billion... 2 billion dollars?

        7 months ago
  • Man, my buddies have been giving me a lot of static since I posted that one! So let me make this perfectly clear. I dig Corvettes and always have. The point I was trying to make was that you cannot buy a car that is that solid with that kind of performance & engineering anywhere in the world for less than $100,000 and usually a good deal more. So why sell them for 60 Grand? Because for the Corvette to stay alive it has to be sold in volume in America and with some exceptions Americans just won't pay that kind of money regardless of how good the car is. The bulk of the American public can take a deep swallow and pay 60 for a Corvette because they expect to pay a little more than a regular car but not a lot and 60k was right about the limit I think. Don't you think that those other people would sell their cars at that price level if they could, even if just to sell more of them? But GM does it because they can afford to do it. If they didn't do that the volume of sales would drop so radically that the price would Skyrocket and that would be the end of the Corvette all together. So I say it again: ifn it wasn't for GM absorbing 30 or 40 k on each car that Corvette would not be in dealerships today.

      7 months ago
  • If only they could sell many.

      7 months ago
  • They've been selling the Corvette at a loss for years! Even with the C 6 and 7, a car that solid with that kind of performance just can't be made for $50k. Look around the world and you'll see nobody else is able to do it either. I think they only do it to keep the Corvette alive

      7 months ago
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