With everything you have said my friend, I tend to agree. But, for one thing, because of the American market will only withstand moderate production numbers versus sales, GM has to expand to the global market so the Corvette may have a future. The investments that were made to get the C8 to the public is indeed a big gamble on GM's part. It is just a matter of time for the end of the Corvette only by increasing production numbers or placing a much higher price tag on the C8 to be saved.
Agreed. GM would love to recoup investments in the first year but I think that is a pipe dream with a production number rumour of 30,000 units. Being generous and forecsting a GM margin of say $9,000.00 per unit, that is a first year net of only $ 270 M. Recovering their initial investment in one year? Not even in the ballpark.... Now. Put 300,000 units out there and the bottom line reads a little better..GM could only wish... LOL... That would not be a good idea to flood the market with a halo car though. Too soon it would become just another car on the road.... such as the Mustang has become....
GM is in business to sell vehicles and to sell them at a high production rate. They are not concerned about the Corvette being just another halo car as you have said, they would be ecstatic if the corvette numbers reached over 100,000 per year. GM is in a very vulnerable financial state in the market share dollars, thus the European market. GM is shutting down its global plants, concentrating on its American operations. Chrysler had to do the same in the 70s and we all know what happened after that. The only vehicles that are keeping GM afloat are the pick-up trucks the cross overs and Cadillac. The Corvette is an American icon, if GM had to rely on Corvette sale alone, well they would have folded along time ago.
100% dead on. No way GM will recoup their investment in the C8 in one year given the price and number of units, even at 40,000. I bet their investment and resources in this car is north of 1/2B $ easily. The European market does not sell a car like this equivalent to US pricing of $60,00. You can buy a Mercedes or Porsche in Germany, Greece, Czech Republic for about 1/2 of what they sell for here. I bet the base C8 would hit $100,000 CAN overseas. I also recall Tadge mentioning the car is easily changed over to right wheel for the overseas market. The Toronto Auto Show is in February. I hope we don't have to wait that long to see the first one in Canada.
Hey, my friend RruuffDay, Yes that is exactly what I am saying. GM has done their due diligence scoping out the sports car market overseas; spending in access of over $1 billion to launch a new version of the Corvette takes some big balls.
What can I say but wow IF you are correct on several levels Iso. I totally understand GM's dream to shatter the overseas market but as I said, that is a hefty wish for the first year or two. I would have thought the 30,000 units this year is do-able but not much more unless they are rubber stamping them off a Chevy Cruze assembly line. I was told by a GM source who probably doesn't know much more than we do that it takes 10 to 11 weeks to build the C8. I have no idea. Supposedly at the moment they are just building dealership and advertising mules but if rumours that retail production won't start until later in the fall, and if buyers all want their cars before next September, that would equate to approx 1000 units per week start to finish to hit 50,000. And if GM actually does only have $ 9,000 gross per unit in the build of a C8, I suppose cost recovery, for the last seven years of design and planning to get us to this point, is reachable sooner than I would have thought. I was basing my conjecture on only $9,000 of return per unit..... If nothing else, interesting discussion... Thanks you Iso.
