2022 C8 Z06 - $50K over MSRP

GM is not purposely trying to create a C8 shortage, nor is it lacking intelligence as suggested in your post. Read up on the many threads on this and other Corvette Forums (or numerous news articles) and you'll see that:

1. the demand for the C8 is unprecedented, with the new C8 Corvette outselling all other sport cars by a wide margin due to its features, performance and "excellent affordability" compared to anything else out there that comes close to it.

2. as mentioned by JCWP above, the only plant that produces Corvettes is in Bowling Green, Kentucky. When running at full capacity, they produce around 185/day and that's using 2 shifts. Because of COVID, even with 2 shifts going full-steam ahead, they have to clean the assembly line between the shifts so normally, they might be able to produce more than that 185/day average. The 185/day for the 2022's can be further reduced by making right-hand drive Corvettes for other countries or, more recently, some Z06 "mules/sample cars" for display/testing.

3. C8 production was hamstrung at the beginning due to a 2019 GM strike that lasted several months, then much more by the unexpected arrival of COVID around March 2020 which shut down Bowling Green entirely for many months...only to have it reopen with one shift and gradually work its way up to the usual 2 shifts. So the 2020 C8 production was just over 20,000 C8's or about half of what they hoped to produce. Then 2021 arrived and COVID continued to slow down production, with Bowling Green again shut down on/off during the production of the 2021 model year. GM only managed to produce some 26,000 C8's for the 2021 model year, which was again far less than it hoped. Obviously reduced sales result in reduced profit, so this wasn't their desired result and was out of their control. Many of the plant shut-downs were because of GM's inability to get parts for the C8, since their part suppliers were unable to manufacture the parts due to COVID problems: employees getting sick, their factories shutting down or they also couldn't get components or materials to make their "piece of the supply chain puzzle" that added up to everything needed to make a C8. In 2021 for the first time, the computer chip shortage happened, again due to COVID and again, nothing GM could control. We're now into the 2022 model year of C8 production. The parts shortages have continued, so that (unfortunately) Bowling Green is now down to one shift only, so it's at half-speed when it comes to C8 production.

4. you may say that GM should open a new Corvette plant. That's easier said than done since it requires years of planning and millions of dollars and even then, it would take awhile to get up and running. Plus it would sit idle these days when even the one plant in operation doesn't have enough parts to operate 2 shifts.

5. what will happen with the Z06 isn't known. But in the past, production of the Z06 variant was around 25% (?) of the Stingrays, so GM has produced a more limited amount of them even though they sell for more. If they were to make (for example) nothing but Z06's, then those wanting a Stingray would complain about having to spend more for the Z06 when the Stingray may be all they want/need. So again, I don't see GM purposely trying to create a Z06 shortage when it's common sense business-wise, to maximize their profit.

6. the great thing is that you can "vote with your money" and choose whether you want to buy a GM product or something manufactured by others. No one likes paying over MSRP and many of us don't, plus we use these Forums to ID dealers who charge MSRP as a maximum (like the dealers who are sponsors on these Forums), versus those who charge more. I think you'll find that COVID has had the same negative effect on other vehicle manufacturers and they're also finding it hard to meet demand. We can only hope that COVID will disappear and life get back to "normal" for everyone, including vehicle manufacturers and most other manufacturers.

My best advice Steve Pringle is to spend some time getting informed. There's a wealth of info about Corvettes in these Forums (CCF) so this is an excellent place to start and you'll find this Corvette community to be welcoming with people willing to spend time to help others out, especially those who constructively contribute to its content.

And no I'm not a GM employee. I've purchased only 3 new GM products in about 35 years: a 1985 Z28, followed by a Suburban "family-mobile" over 15 years ago, then more recently my 2020 C8. I couldn't resist the C8 given its new mid-engine platform and GM has made me a believer from that ownership. Best of luck with whatever automobile purchase choices you make.
Great explanation Netsinah, thanks for taking the time. I'm sure GM is frustrated as hell having customers throwing money at them and they can't take the cash. This is not a problem they are used to, usually they have to discount their vehicles to sell them. If GM could figure out a way to double or triple Corvette production I'm sure they would do it immediately. Right now it's all they can do to keep one production line going. They have tried numerous times to get a second line going but it always has to be stopped due to supply shortages. Imagine all the hundreds of parts it takes to make a car. If one supplier can't deliver it can shut down the whole plant. Anyone who has been breathing for the last two years knows there is shortages of almost everything. Heck, I went to Home Depot last week to buy a circuit breaker and they were on back order. The new C8 unfortunately arrived at the same time as Covid, if it were not for Covid GM would be producing twice as many and the whole market would settle down. For the fun of it I ran some reports on Autotrader.ca, the number of C8's for sale is now higher than the number of C6's for sale. C7's for sale is still the highest but C8's for sale are increasing. I don't know if it is just winter in Canada, but prices of C8's seem to be slowly dropping. At some point we will reach equilibrium, the flippers will be out of the market and there will be new C8's for sale on dealer lots for MSRP or less. Until then I'm relaxed, enjoying my C5 Z06 more than ever.
 
Great explanation Netsinah, thanks for taking the time. I'm sure GM is frustrated as hell having customers throwing money at them and they can't take the cash. This is not a problem they are used to, usually they have to discount their vehicles to sell them. If GM could figure out a way to double or triple Corvette production I'm sure they would do it immediately. Right now it's all they can do to keep one production line going. They have tried numerous times to get a second line going but it always has to be stopped due to supply shortages. Imagine all the hundreds of parts it takes to make a car. If one supplier can't deliver it can shut down the whole plant. Anyone who has been breathing for the last two years knows there is shortages of almost everything. Heck, I went to Home Depot last week to buy a circuit breaker and they were on back order. The new C8 unfortunately arrived at the same time as Covid, if it were not for Covid GM would be producing twice as many and the whole market would settle down. For the fun of it I ran some reports on Autotrader.ca, the number of C8's for sale is now higher than the number of C6's for sale. C7's for sale is still the highest but C8's for sale are increasing. I don't know if it is just winter in Canada, but prices of C8's seem to be slowly dropping. At some point we will reach equilibrium, the flippers will be out of the market and there will be new C8's for sale on dealer lots for MSRP or less. Until then I'm relaxed, enjoying my C5 Z06 more than ever.
Not sure C8 market price will come down very much? A friend of mine spoke to someone at the B.G factory in Kentucky: one shift right now apparently, Z06 maybe production June of 2022 - part of issue is the hand assembled engines. Spoke to one of the larger dealers - if not the largest in B.C. the other day - production and delivery very slow and wait list growing for the C8 - ditto the Z06. The E-Ray which I would be interested in - he said - "forget about it". Glad I bought my C8 at way over MSRP. Told I would get what I paid - MSRP on a trade - lots of luck getting a Z06 - not happening.
 
I know a guy who has a deposit at 14 different dealerships for the Z06. His plan is to order base models and immediately flip them for a 6 figure profit overseas. A lot of people I know are expecting a $50,000 paycheque from taking delivery.

Other manufactures like Mercedes-Benz took initiatives to stop people from flipping their G-wagons. Crickets at GM. Long term customers like me are being alienated so GM can cater to flippers and exporters.

I’ve given up ordering a C8 and will buy on the secondary market. This will probably be my last GM product.

Well he's a dummy because GM maintains a Blacklist. The second he sells (transfers ownership) or exports the first Z06 he receives, GM will be flagged. Trust me I have first hand knowledge and a few examples. Unless he flukes out and has one or two allocations come at the same time. But regardless, he's screwed.

Secondly, no GM does not cater to exporters and flippers. I know of a dealership here in Canada who's massive fleet customer was recently denied buying ANYTHING GM related for selling a vehicle before the prescribed time. It ended up in the states and now they are screwed for future business.

And finally, go try and purchase any GM product right now cash. You can't. At least anything desirable from GM. I went to purchase my 21 Yukon cash and had to finance it because "cash deals" flag the dealers that its possibly an exporter or flipper. Are dealers taking advantage of low supply and high export demand by collecting finance incentives...yes.
 
Always been a cash buyer. And yes GM will and dose flag flippers. They also watch dealers that charged above GM list prices. ( A BAD NO NO )
Things will change , just not today . I don’t believe that any car Dealer is your best Friend , but i do feel that some are fallowing rules set by GM as best as they can . NOTE that it is hard times for most dealerships as they only have a few cars on there lots and are trying to pay there huge land and internal costs between service and used car sales . At the end of the day this could be truly survival of the fittest. And its not just GM .
Try and buy a Acura or even a ford . My sister was told 8 months for a Escape . And as to cost !!!! Have you been to a grocery store lately ?
If you want anything from a dealer, use only the dealer that will not over sticker. Stop dealing with the others Even on service. We will all win
 
GM Canada is well aware that dealers are marking up C8's and they do not give a shite, as stated to me by a GM CSR. "They can sell those car for whatever price they want"
 
GM Canada is well aware that dealers are marking up C8's and they do not give a shite, as stated to me by a GM CSR. "They can sell those car for whatever price they want"
Yes, they can, but GM does certainly care! It makes no business sense to have their product sold for much more than MSRP. GM is in competition with other auto makers, just as Kleenex is in competition with Scott's. Similar products compete on many levels and price is one of them.
 
Great explanation Netsinah, thanks for taking the time. I'm sure GM is frustrated as hell having customers throwing money at them and they can't take the cash. This is not a problem they are used to, usually they have to discount their vehicles to sell them. If GM could figure out a way to double or triple Corvette production I'm sure they would do it immediately. Right now it's all they can do to keep one production line going. They have tried numerous times to get a second line going but it always has to be stopped due to supply shortages. Imagine all the hundreds of parts it takes to make a car. If one supplier can't deliver it can shut down the whole plant. Anyone who has been breathing for the last two years knows there is shortages of almost everything. Heck, I went to Home Depot last week to buy a circuit breaker and they were on back order. The new C8 unfortunately arrived at the same time as Covid, if it were not for Covid GM would be producing twice as many and the whole market would settle down. For the fun of it I ran some reports on Autotrader.ca, the number of C8's for sale is now higher than the number of C6's for sale. C7's for sale is still the highest but C8's for sale are increasing. I don't know if it is just winter in Canada, but prices of C8's seem to be slowly dropping. At some point we will reach equilibrium, the flippers will be out of the market and there will be new C8's for sale on dealer lots for MSRP or less. Until then I'm relaxed, enjoying my C5 Z06 more than ever.
Not sure C8 market price will come down very much? A friend of mine spoke to someone at the B.G factory in Kentucky: one shift right now apparently, Z06 maybe production June of 2022 - part of issue is the hand assembled engines. Spoke to one of the larger dealers - if not the largest in B.C. the other day - production and delivery very slow and wait list growing for the C8 - ditto the Z06. The E-Ray which I would be interested in - he said - "forget about it". Glad I bought my C8 at way over MSRP. Told I would get what I paid - MSRP on a trade - lots of luck getting a Z06 - not happening.

Why did he say forget about the e ray?
 

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