Just saw ChevyDude post this skip his usual vlog stuff start in at about 24 sec of this.

My fingers are crossed for my 1100 Event Status and if I don't get my allocation its bye bye GM forever!

ALLOCATIONS CUT EXPLANATION

Worried in Ottawa

Kevin

There is no hard proof on this now purely speculation. Until we see something official from GM I wouldn’t panic. Albeit GM Canada has never come out to any dealer that I know of and committed to any number on the back half. With the strike so long it’s very possible they won’t get the numbers out they thought for the back end ..... it’s certainly a story to be continued ....
 
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There is no hard proof on this now purely speculation. Until we see something official from GM I wouldn’t panic. Albeit GM Canada has never come out to any dealer that I know of and committed to any number on the back half. With the strike so long it’s very possible they won’t get the numbers out they thought for the back end ..... it’s certainly a story to be continued ....
Hey Nosoup,

I hear what you are getting at, although from 4:28 to 5:11... he is what I gather, stating from his dealership information that he was being told, that yes allocation #'s were being cut buy 15%... he then later ups that to his personal input and puts it at 20% so I in my take from this as he is a sales guy who deals in lots of Corvettes that it is not speculation. The 20% yes I would agree is 5% higher than he was told.

In watching it, if GM comes at me and says its 2021 time sorry you have had my $ long enough and are not paying me interest on it or even giving me a product, till sometime in 2021? Sorry no thanks, lost customer!

I hope that the 1100 status as he says keeps us in line for GM but as a first time buyer I am not overly impressed this far by the way GM does business, for something that will be and should have been put as a priority to all GM customers on both sides of the border.

Yes the strike messed things up I get that, but should managers at GM have a Plan A, B, C and a D? I would think so... unless its hey we have customers in line, who cares we will sell our vehicles....not a great feeling as a 1st time customer looking to drop 125K.

GMO

Cheers,

Kevin
 
There is no hard proof on this now purely speculation. Until we see something official from GM I wouldn’t panic. Albeit GM Canada has never come out to any dealer that I know of and committed to any number on the back half. With the strike so long it’s very possible they won’t get the numbers out they thought for the back end ..... it’s certainly a story to be continued ....
Hey Nosoup,

I hear what you are getting at, although from 4:28 to 5:11... he is what I gather, stating from his dealership information that he was being told, that yes allocation #'s were being cut buy 15%... he then later ups that to his personal input and puts it at 20% so I in my take from this as he is a sales guy who deals in lots of Corvettes that it is not speculation. The 20% yes I would agree is 5% higher than he was told.

In watching it, if GM comes at me and says its 2021 time sorry you have had my $ long enough and are not paying me interest on it or even giving me a product, till sometime in 2021? Sorry no thanks, lost customer!

I hope that the 1100 status as he says keeps us in line for GM but as a first time buyer I am not overly impressed this far by the way GM does business, for something that will be and should have been put as a priority to all GM customers on both sides of the border.

Yes the strike messed things up I get that, but should managers at GM have a Plan A, B, C and a D? I would think so... unless its hey we have customers in line, who cares we will sell our vehicles....not a great feeling as a 1st time customer looking to drop 125K.

GMO

Cheers,

Kevin

All with a grain of salt. “Chevy Dude” has been known to be wrong before. 15 could be 20... 20 could be 15. Also USA is not Canada. Could be better or worse for us. Bottom line is it’s like a said a story to be continued and watched for sure !
 
If I could chime in here.

This is not the first time I have heard the "GM is cutting allocation by 15% (or more)"

Here's what is actually being said:

"GM is cutting allocation to the HIGH VOLUME CORVETTE DEALERSHIPS by 15 to 20%"

What is not being said is "GM is cutting production by 15 to 20%"

They may still make 40,000, 2020 Corvettes as they originally planned on doing. What is being said here is they may be reducing the number of Corvettes some dealerships are getting in order to allow other dealerships to receive more of the love.

I imagine this has very little to do with Canada and if it has any impact on the USA, the impact in Canada in minimal. We get 5-15% of all Corvettes built. What we get would have little effect on the American market.


Now, directed at @OttawaKev :

GM doesn't have any of your money right now. You may have a big deposit at a dealership, but it's not GM that is incurring interest on the money. Dealerships are franchised. The dealership has your money and would be incurring interest on it if that is what they choose to do with it (not likely, no dealerships have invested money. It's all tied up in millions of dollars for the inventory they're carrying). If you decide to pull your order and not buy the car, it'll be of no consequence to GM, but would mean the business, the people working at the dealership and their families will take the loss at no fault of their own. Thank about that for a second.
 
If I could chime in here.

This is not the first time I have heard the "GM is cutting allocation by 15% (or more)"

Here's what is actually being said:

"GM is cutting allocation to the HIGH VOLUME CORVETTE DEALERSHIPS by 15 to 20%"

What is not being said is "GM is cutting production by 15 to 20%"

They may still make 40,000, 2020 Corvettes as they originally planned on doing. What is being said here is they may be reducing the number of Corvettes some dealerships are getting in order to allow other dealerships to receive more of the love.

I imagine this has very little to do with Canada and if it has any impact on the USA, the impact in Canada in minimal. We get 5-15% of all Corvettes built. What we get would have little effect on the American market.


Now, directed at @OttawaKev :

GM doesn't have any of your money right now. You may have a big deposit at a dealership, but it's not GM that is incurring interest on the money. Dealerships are franchised. The dealership has your money and would be incurring interest on it if that is what they choose to do with it (not likely, no dealerships have invested money. It's all tied up in millions of dollars for the inventory they're carrying). If you decide to pull your order and not buy the car, it'll be of no consequence to GM, but would mean the business, the people working at the dealership and their families will take the loss at no fault of their own. Thank about that for a second.

EJ so what you’re saying is it’s a little bit of a shell game? Stealing from Peter to pay Paul maybe ?
 
EJ so what you’re saying is it’s a little bit of a shell game? Stealing from Peter to pay Paul maybe ?


The only thing I'm saying is that certain high-volume dealerships have stated that THEIR allocation has been reduced.

I'm not saying that anything else is the case, only sharing all of the information available, that I have seen, (conveniently left out from certain reports, not pointing fingers) and sharing my interpretation of it.
 
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If I could chime in here.

This is not the first time I have heard the "GM is cutting allocation by 15% (or more)"

Here's what is actually being said:

"GM is cutting allocation to the HIGH VOLUME CORVETTE DEALERSHIPS by 15 to 20%"

What is not being said is "GM is cutting production by 15 to 20%"

They may still make 40,000, 2020 Corvettes as they originally planned on doing. What is being said here is they may be reducing the number of Corvettes some dealerships are getting in order to allow other dealerships to receive more of the love.

I imagine this has very little to do with Canada and if it has any impact on the USA, the impact in Canada in minimal. We get 5-15% of all Corvettes built. What we get would have little effect on the American market.


Now, directed at @OttawaKev :

GM doesn't have any of your money right now. You may have a big deposit at a dealership, but it's not GM that is incurring interest on the money. Dealerships are franchised. The dealership has your money and would be incurring interest on it if that is what they choose to do with it (not likely, no dealerships have invested money. It's all tied up in millions of dollars for the inventory they're carrying). If you decide to pull your order and not buy the car, it'll be of no consequence to GM, but would mean the business, the people working at the dealership and their families will take the loss at no fault of their own. Thank about that for a second.
Hey I hear ya EJ....I am really more ticked I guess of the way they do their information and are not up front its all last minute or last second....where we will go WOW great I'll give you as for me almost a month pay way in advance but you only give us a "Day of" notice rather than something that where it is a heads up from GM a week or two out or even with the contact info they have with our dealerships.."please bear with us as we sort out things from the strike"

I have always dreamed of having a sports car GM, Jag, Lotus, Porsche, Audi, Alpha in that order so to me personally it hurts kind of like Santa is coming....no he's not...wait he might be...hang on we are not sure.... hahahahaha

Ya I'm a bit of a stressed guy dropping 125K on a car but why are they making it such an information smoke n mirrors?

Cheers,

Kevin
 
Hey I hear ya EJ....I am really more ticked I guess of the way they do their information and are not up front its all last minute or last second....where we will go WOW great I'll give you as for me almost a month pay way in advance but you only give us a "Day of" notice rather than something that where it is a heads up from GM a week or two out or even with the contact info they have with our dealerships.."please bear with us as we sort out things from the strike"
I cannot speak of other manufacturers, but it's like this with pretty much every model GM makes. I wouldn't be surprised if this is typical in the auto industry. Taking my background in engineering to support my view
 
I cannot speak of other manufacturers, but it's like this with pretty much every model GM makes. I wouldn't be surprised if this is typical in the auto industry. Taking my background in engineering to support my view
Engineers are the worst hahahahah worked with many SE's in my day hahahahahah.

EJ you rock! Hope Dave got in touch with you or will soon!
 
I cannot speak of other manufacturers, but it's like this with pretty much every model GM makes. I wouldn't be surprised if this is typical in the auto industry. Taking my background in engineering to support my view
Also in my dealings with Infinity even with used vehicles and them wanting me to try their new as well as going to special events like F1 and other cool things. I feel GM is missing something possibly. It is people like yourself with amazing service to their customers and not even customers that is keeping them afloat, as well the good dealerships that let their customers past and future that to THEM they matter.

Cheers,

Kevin
 
If I were selling C8s ... I would be working hard with
prospects for the 2021 model and not putting my clients
into this circus of anxiety with the 2020 now. I don't know
the allocation requirements though as 2020 sales may
heavily influence being able to obtain allotments for 2021 ...
GM seems to not be respecting our Canadian market (dealers & buyers)
on this stuff unless they are thinking USA exclusivity is their best reward.
They did fail many Canadians tremendously with the C7ZR1
- but the C8 is not just a single year circus.
 
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If I were selling C8s ... I would be working hard with
prospects for the 2021 model and not putting my clients
into this circus of anxiety with the 2020 now. I don't know
the allocation requirements though as 2020 sales may
heavily influence being able to obtain allotments for 2021 ...
GM seems to not be respecting our Canadian market (dealers & buyers)
on this stuff unless they are thinking USA exclusivity is their best reward.
They did fail many Canadians tremendously with the C7ZR1.
Well that is a good point, I learned long ago to set proper expectations with your corvette clients orders. I will always give you the worst case Ontario and hope that it improves. As for GM in the Canadian market it boils down to money. They make more off of selling in the states. The C8 for example converts over to 18.75% instead of the 32% currency conversion. Our buying power is far superior but our allotment is less because of this. GM canada has an aggressive strategy to counteract this in the C8 gen. An example is the deliveries in winter over the traditional 7degree rule they have done in the past.
 
If I were selling C8s ... I would be working hard with
prospects for the 2021 model and not putting my clients
into this circus of anxiety with the 2020 now. I don't know
the allocation requirements though as 2020 sales may
heavily influence being able to obtain allotments for 2021 ...
GM seems to not be respecting our Canadian market (dealers & buyers)
on this stuff unless they are thinking USA exclusivity is their best reward.
They did fail many Canadians tremendously with the C7ZR1
- but the C8 is not just a single year circus.

I haven't made any promises to any of my customers, aside from the first 13, that we will get them a 2020 Corvette. After our first half, which we've already had fulfilled by GM, we do not know what we will get. We might not get any more at all, we might get 50. We'll have to wait and see. We will know in a few weeks from now.

Regarding the C7ZR1, GM didn't have any incentive to sell them in Canada. GM actually makes less money for each vehicle they sell in Canada than if they sell it in the USA, and the demand in the USA is high enough that they can sell all of them south of the border. I know it's not fair, but if you were running a business, would you restrict your more lucrative clients in order to extend a hand out to clients that will never make you as much? Sure, there were probably enough people in Canada to sell $2million worth. It sounds like a lot of money to us, but in reality, that's a drop in the bucket.

I don't like talking like this. At the end of the day, it's a business.
 
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Well that is a good point, I learned long ago to set proper expectations with your corvette clients orders. I will always give you the worst case Ontario and hope that it improves. As for GM in the Canadian market it boils down to money. They make more off of selling in the states. The C8 for example converts over to 18.75% instead of the 32% currency conversion. Our buying power is far superior but our allotment is less because of this. GM canada has an aggressive strategy to counteract this in the C8 gen. An example is the deliveries in winter over the traditional 7degree rule they have done in the past.


The expectation is winter deliveries will only take place with non-Z51 Corvettes, if they do this at all. There has been no official word on what changes will take place.

Since GM began restricting shipment, during the C7 run, I cannot imagine they will begin shipping summer-only tire-clad Corvettes in the winter because they will continue to have the same tire-cracking problem that could ultimately cost GM or the dealerships a lot of money.

7C is fine, it's -5C when you really need to be careful.
 
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The expectation is winter deliveries will only take place with non-Z51 Corvettes, if they do this at all. There has been no official word on what changes will take place.

Since GM began restricting shipment, during the C7 run, I cannot imagine they will begin shipping summer-only tire-clad Corvettes in the winter because they will continue to have the same tire-cracking problem that could ultimately cost GM or the dealerships a lot of money.

7C is fine, it's -5C when you really need to be careful.
At the C8 release Travis Hester then president of GM Canada told us that they would be expecting dealers to take orders throughout the winter months in order to keep our priority status with GM. GM has a tenancy to neglect Canada and in some years and it was thought that if we ordered all year round we would keep in their inner circle for gaining allotment
 
Just throwing this out there for thoughts....Do you guys a possible allocation reduction could be to fill Non-NA markets they are moving into as orders could have been higher than anticipated and they make more per vehicle in those marketsand they want Corvette to compete with the Eurocars? I mention this as I have heard Tadge mention Europe and Australia in a few interviews.

Cheers,

Kevin
 
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