Canada only got 3.9% of 2022 Corvettes

[Mr.Corvette]

Some interesting points brought up by everyone this evening. We lost 875 cars and Mexico lost 71.
All of those cars went to new markets in Europe and Australia/New Zealand.
Australia just had a $15,000 price increase compared to our $3000 increase this week.
The 3LT coupe there starts at $175K and $190K for the HTC.
GM makes approx. $30K more for each car sold in Europe compared to Canada and double that for each
car sold to Australia and New Zealand. You do the math and GM made an extra $33.5 Million dollars US selling
our export cars to other markets rather than losing that money selling to us.
I was anticipating a drop from 7.2% to around 6% but not 3.9%. From the initial allocations
it doesn't look likely to change for 2023. I have a couple of other theories as to why this happened
but I still think money is the biggest factor.

 

[gone]

GM makes less money selling to the States, compared to these new overseas markets. So again, with GM maintaining its US allocation percentage every year, I don’t think it’s money but rather it’s favouring their home fan base, and abandoning their (for now, stay tuned for the future) traditional Canadian fan base.

 

[larryd]

Yes, your best bet is just thinking about a corvette purchase.

I bought the HTC since I was lead to believe, that with this version, I could downhill ski during winter months with the top down.

 

[Murray20c8]

as soon Z06 allocations come out (I think July 07, 2022), allocations of base C8 will drop by 1/3rd, so if Canada was to get 1000 C8 in 2023, it will now be 667

But 333 Z06's

 

[Zedder]

Well, the silver lining is that fewer people will have to pay the luxury tax on a Corvette

FYI, the tax is a done deal effective Sept 1/22

Budget bill receives royal assent | Advisor's Edge

Luxury tax and increased eligibility for the disability tax credit are now law as Bill C-19 passes

www.advisor.ca

 

[Blu427]

GM makes less money selling to the States, compared to these new overseas markets. So again, with GM maintaining its US allocation percentage every year, I don’t think it’s money but rather it’s favouring their home fan base, and abandoning their (for now, stay tuned for the future) traditional Canadian fan base.

We tend to forget that Corvette is a Chevrolet brand and they report to GM. Because of supply issues all Chevrolet brands are
being under produced and consequently the bottom line is not where it should be.
We on this forum only think about the Corvette brand while Chevrolet must consider all brands and maximize profits under the existing
conditions.
Chevrolet and GM invested hundreds of millions in the BG plant gearing up for the C8 launch as they knew there would be an
increased demand, but due to Covid they are unable to meet full production potential.
With a $30,000 per unit additional profit potential on overseas sales it only stands to reason that Corvette made the decision to increase
allocations to that market.
This will likely continue until the supply chain is able to fill the backlog and get Corvette production to the 40,000 vehicle per year range.
A solid business decision would be to fill every overseas order to maximize profit.

 

[Zedder]

Some interesting points brought up by everyone this evening. We lost 875 cars and Mexico lost 71.
All of those cars went to new markets in Europe and Australia/New Zealand.
Australia just had a $15,000 price increase compared to our $3000 increase this week.
The 3LT coupe there starts at $175K and $190K for the HTC.
GM makes approx. $30K more for each car sold in Europe compared to Canada and double that for each
car sold to Australia and New Zealand. You do the math and GM made an extra $33.5 Million dollars US selling
our export cars to other markets rather than losing that money selling to us.
I was anticipating a drop from 7.2% to around 6% but not 3.9%. From the initial allocations
it doesn't look likely to change for 2023. I have a couple of other theories as to why this happened
but I still think money is the biggest factor.

I agree with your thoughts…I’m just shocked that GM Canada would get the short end of the stick rather than spreading the pain around all existing markets. In a few years we’ll have a better chance of buying a lightly used Corvette from the states!

 

[Zedder]

I just turned 60 and I’m #78 on Spencer’s Z06 list. I should get my car for my 100th birthday!

 

[Murray20c8]

I just turned 60 and I’m #78 on Spencer’s Z06 list. I should get my car for my 100th birthday!

I didn't know whether to agree with you or just laugh. What you said is painfully true.

 

[Zedder]

I’m laughing and crying at the same time Murray!

 

[gone]

GM makes less money selling to the States, compared to these new overseas markets. So again, with GM maintaining its US allocation percentage every year, I don’t think it’s money but rather it’s favouring their home fan base, and abandoning their (for now, stay tuned for the future) traditional Canadian fan base.

We tend to forget that Corvette is a Chevrolet brand and they report to GM. Because of supply issues all Chevrolet brands are
being under produced and consequently the bottom line is not where it should be.
We on this forum only think about the Corvette brand while Chevrolet must consider all brands and maximize profits under the existing
conditions.
Chevrolet and GM invested hundreds of millions in the BG plant gearing up for the C8 launch as they knew there would be an
increased demand, but due to Covid they are unable to meet full production potential.
With a $30,000 per unit additional profit potential on overseas sales it only stands to reason that Corvette made the decision to increase
allocations to that market.
This will likely continue until the supply chain is able to fill the backlog and get Corvette production to the 40,000 vehicle per year range.
A solid business decision would be to fill every overseas order to maximize profit.

None of that explains GM’s decision to maintain its US allocations at the same level. If profit was the motive, the US allocations would have been reduced and overseas allocations increased even more. The stats are clear: GM has decided to abandon its Canadian market. I’m sure Canadians will react accordingly.

 

[Rruuff Day]

Before there was a C8 forum section here and before most of you became members and no one even had an idea what the C8 would even look like, the mindset of GM was discussed quite a bit here with conclusions from most everyone that the C8 was being developed as an entry into the supercar/exotic (call it whatever) market overseas primarily for a faster return on their initial investment and a more substantial profit margin than they could ever get at home.
My theory only, but three years of low production and low priced C8's delivered through the US and Canada was and is cheap advertising all over the world for them which is now just beginning to pay and will result at some point in the very near future, that will see the majority of Corvette C8 production exported to points worldwide where $200k and up is mere pocket change to much of the populations that have warehouses of multi million dollar cars in their collections.
Sadly, and I hope I'm not right for all you guys that want one, but I'm revising my early projection from 300 down to Canada receiving more like 150 C8 Z06's the first year. Further I would suggest if you do get one in the inaugural year, you will have saved 10's of thousands of dollars from where the price will go after that.
As the push for electric continues, the demand for gas powered vehicles will only be overseas anyway where countries don't give two hoots about carbon, the atmosphere, environment etc. If I was on a long list for a Z06, I would also get on lists immediately for the E-Ray as it's doubtful many will ever see a new Z06. Either that or be prepared to pay $75k or more over MSRP for a flipped one. JMO

 

[Murray20c8]

Before there was a C8 forum section here and before most of you became members and no one even had an idea what the C8 would even look like, the mindset of GM was discussed quite a bit here with conclusions from most everyone that the C8 was being developed as an entry into the supercar/exotic (call it whatever) market overseas primarily for a faster return on their initial investment and a more substantial profit margin than they could ever get at home.
My theory only, but three years of low production and low priced C8's delivered through the US and Canada was and is cheap advertising all over the world for them which is now just beginning to pay and will result at some point in the very near future, that will see the majority of Corvette C8 production exported to points worldwide where $200k and up is mere pocket change to much of the populations that have warehouses of multi million dollar cars in their collections.
Sadly, and I hope I'm not right for all you guys that want one, but I'm revising my early projection from 300 down to Canada receiving more like 150 C8 Z06's the first year. Further I would suggest if you do get one in the inaugural year, you will have saved 10's of thousands of dollars from where the price will go after that.
As the push for electric continues, the demand for gas powered vehicles will only be overseas anyway where countries don't give two hoots about carbon, the atmosphere, environment etc. If I was on a long list for a Z06, I would also get on lists immediately for the E-Ray as it's doubtful many will ever see a new Z06. Either that or be prepared to pay $75k or more over MSRP for a flipped one. JMO

Not to be a doom monger or anything! lol

 

[Rruuff Day]

Not to be a doom monger or anything! lol

Lol... Just telling it like my feeble mind sees it....Like I said. I hope I'm wrong. I hope the world finally realizes an electric grid capacity capable of all electric vehicles is still a long ways away, and hope that oil and gas production continues for at least until I am dead and gone. Gonna be a different world without it.

 

[AndrewJ]

"As the push for electric continues, the demand for gas powered vehicles will only be overseas anyway where countries don't give two hoots about carbon, the atmosphere, environment etc. If I was on a long list for a Z06, I would also get on lists immediately for the E-Ray as it's doubtful many will ever see a new Z06. Either that or be prepared to pay $75k or more over MSRP for a flipped one. JMO"

I would have thought the opposite. Other than the Middle East, is it not North America that has by far the highest demand for ICE? I am not knowledgeable on this topic, but I was under the impression that we are far behind Europe and other "modern" nations in the use for Electric and alternative cars

 

[Rruuff Day]

"As the push for electric continues, the demand for gas powered vehicles will only be overseas anyway where countries don't give two hoots about carbon, the atmosphere, environment etc. If I was on a long list for a Z06, I would also get on lists immediately for the E-Ray as it's doubtful many will ever see a new Z06. Either that or be prepared to pay $75k or more over MSRP for a flipped one. JMO"

I would have thought the opposite. Other than the Middle East, is it not North America that has by far the highest demand for ICE? I am not knowledgeable on this topic, but I was under the impression that we are far behind Europe and other "modern" nations in the use for Electric and alternative cars

I edited out the word Arab in front of countries for fear of kickback. I know what you are saying. But there are many other oil production countries where gas is almost free. Take Venezuela for instance. Their government just doubled the price of gasoline. It's up to 2 cents per litre now. Unfortunately, there's not many in Venezuela besides government officials and cocaine dealers who can afford supercars.

 

[Gilles27]

I just turned 60 and I’m #78 on Spencer’s Z06 list. I should get my car for my 100th birthday!

I hope at 78th on the list they took $100 deposit , still bothers me why dealers have such a long list when no way they will ever fulfill these allocations in a realistic time period, Ciocca has a list 5000 long @ $5000 usd each, nice interest free money.

 

[Neils]

Well just hang tight folks until you see my upcoming post in a couple days, all of your C8’s (my C8 too) you are waiting on are all here (allocated to others). Am down in Jersey for vacation and quickly visited Ciocca (Kerbeck), and Holy Crap, looked like a C8 car show, every single color and combo was there. Must have had 70+ cars stuffed into 2 buildings plus outside.

Until I post with pics and maybe a video, I leave you with this question to ponder, for which the sales guy told me proudly. How many C8’s have they delivered since the C8 came out. Will find out their monthly delivery when I go back, but have an idea. I think all the Americans order from them and then fly or drive down to pick up their car.

One thing is for sure, if you are confused what color to get, drive down to Jersey and visit this dealer and you will see all the colors in one spot. More to come shortly …..

 

[Blu427]

None of that explains GM’s decision to maintain its US allocations at the same level. If profit was the motive, the US allocations would have been reduced and overseas allocations increased even more. The stats are clear: GM has decided to abandon its Canadian market. I’m sure Canadians will react accordingly.

Actually I think it does explain it. GM has filled every overseas order they received with cars that otherwise
would have been Canadian allocations while still maintaining the US market which as we all know produces higher
margins than the Canadian market.(due to the conversion rate GM uses) They dropped their least profitable market, Canada,
which is what I understand your post to claim, and I agree.

 

[Neils]

And if you want to get an idea of how many C8’s Ciocca is getting as allocation and delivering, check out their online order list. That’s right, our Canadian dealers will tell us they cannot do this due to privacy laws, and here you can see the trim, color, price and status for each order. Seems the new pearl white (70th) and HG are quite popular for ‘23. After seeing HG in person I scratched it from my list (it is a nice color just too tame for my taste).

Corvette Order Tracking | Ciocca Corvette of Atlantic City

Check the update on your new Chevrolet Corvette.

www.cioccacorvette.com