Sep 10, 2020
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Looking for everyone's input here as already today I read a comment that it's a business and GM is in the business to make money. Let's look at what's happened to get here. In 2020 GM produces 20368 first year C8's 1490 come to Canada for 7.3%. In 2021, 23573 were produced and we got 1887 for 7.2%. In 2022 they start building right hand drives with 23503 produced, our allocations slips to 1014 cars which is -875 cars for 3.9% production but where did the cars go? Europe got 693 of them for a selling price of approx $30,000 US more per car than those cars the previous year that sold in Canada, and Australia and New Zealand got 212 of them for approx 60K more per car than selling them in Canada. Yes I know that adds up to 905 cars more than the 875 we lost but Mexico, Japan, and the Middle East lost cars as well. In total it is estimated that GM made 33.5 million dollars more by selling our cars in Europe and down under where the freight cost was an extra $15,000 to get there. Perhaps additional profit on the shipping costs as well?
So, on Tuesday August 15th the factory that started building the 2023's on Friday May 20th, 2022 built the 40,000th Stingray. Add 70ths, Z06's at 4486 plus Z06's 70th's plus 216 Captured Test Fleet Z06's we now have 49,600 built chasing the 1979 record of 53,803 and now need to build 205 a day from now until September 11th when the final 2023's and the first 2024's are scheduled to go down the line together similar to what happened at the start of the 2023 build.
Canada has from the numbers I can gather 2730 C8's that have been sent here for a 5.5% allocation. The 2023 production has surpassed the 2021 and 2022 production combined but Canada is still down in allocation percentage compared to 2020 and 2021, but better than 2022's. Next to the US that gets 91% of the allocation, Canada gets the most year after year. Our exchange rate on the car had been 25.16814% in 2023 and Murray indicated subsidies were over and GM had pushed the rate to 35%. Others suggested policies in Ottawa to create more taxes. I have it from a credible source last week that GM zone management still feels that this is a low volume car and is a small piece of the business in the grand scheme of things to the profitability of the company. GM Corporate may look at things differently. They see that Canadian cars produce the least amount of profit compared to anywhere else that they sell the car. It actually costs less to buy the car in Canada than it does in the US using the exchange rate. Then they see Canadian cars being exported back into the USA and they think Canada doesn't need as many cars if that is happening. They know cars are being sold for a profit, and they would prefer to capitalize on more profits and discourage exporting. They know that regardless of GM Canada's lack of support for the Corvette, with the under 3000 cars a year they're sending to us they will all sell, and if they're going to continue sending Canada cars, they need to up profits by increasing the car by 12K which is 10K more than the US price increase and 15K more for the Z06 in order to justify sending cars here. They could still make 30-50k more by sending our cars again to Europe, the Middle East and Australia than selling them here and make millions more in profits. We can only speculate here, but after 70 years of buying all eight generations of Corvettes compared to 2 years in other countries with factory spec cars, I think Canada has earned some goodwill and that's why we get what we do.
If we want to keep getting 2000-3,000 cars per year, and keep our allocations in the 5-7% range, were going to have to start paying for that or our allocation will drop back down to 3.9% and they will sell our cars for higher profits elsewhere. Another point here is that this just isn't happening with Corvette. Cadillac has had similar price increases during 2023 and an Escalade V is now over $200,000 Canadian dollars. I believe Corporate is now demanding a more balanced price between the US and Canada to discourage flipping and exporting and to increase profits.
GM Canada is just complying with the head office memo in this case, as deep down it's just a "small piece" of the business compared to trucks and suv's.
From all my sources, that's the reason why the price changed Tuesday the way it did, and the world market and demand for this car finally caught up to us and Corporate has spoken.
I value all of your input and if you have heard anything about this, the discussion is open.
 
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Well aside from any deep dive into the economics or the business model, one thing is jarringly true. Corvette is no longer the Joe Six Pack affordable sports car. For years the draw of Corvette was that for most blue collar working class families, a Corvette was within reach. Those days are gone. Time will tell as to whether this is a smart business decision. I am removing my name from the lists I am on, mostly on principle, and over the next year or so will evaluate non-GM options.

Maybe time to buy a boat or an airplane instead.
 
I see a number of members talking about moving to a Porsche, do they sell in Canada at
24% exchange rate or at the 35% bank rate?
What is US vs Canadian pricing?
I haven't seen any complaints about the pricing difference on a Porsche so I'm presuming it
isn't important to potential buyers.
 
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Fantastic post Scott and I was thinking the same rationale in my head last night pondering why.

GM is very serious about the exporting as I heard it first hand from the GM audit team (cleared my name fortunately). We saw a large increase in the price of our Suburban and its borderline getting a bit too expensive not to mention the E-Ray I'm excited to order. I'll likely still proceed but man GM has really brought the "performance C8s" (Z06 and E-Ray) close to Porsche territory although folks need to understand that the Porsche Executive Board increased almost every model in the line up by 24% due to shareholder complaints about the resale market profiteering. I have friends in Porsche circles and its wickedly hard to obtain a new 911 order (any model) and that was never the case.

This all being said the Lux Tax has certainly impacted how us as car enthusiasts decide what cars to purchase and its my hope the PC's win and eliminate this cash grab.
 
Well aside from any deep dive into the economics or the business model, one thing is jarringly true. Corvette is no longer the Joe Six Pack affordable sports car. For years the draw of Corvette was that for most blue collar working class families, a Corvette was within reach. Those days are gone. Time will tell as to whether this is a smart business decision. I am removing my name from the lists I am on, mostly on principle, and over the next year or so will evaluate non-GM options.

Maybe time to buy a boat or an airplane instead.
Well, if you buy a boat at least the luxury tax threshold is $250,000. You have a beautiful 70th anniversary car at the old pricing structure that just went up 10-12K in value. Isn't the old saying don't cut off your hands to spite your face. Perhaps this change will blow up in their face, only time will tell but stay with us in the meantime!!
 
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Well aside from any deep dive into the economics or the business model, one thing is jarringly true. Corvette is no longer the Joe Six Pack affordable sports car. For years the draw of Corvette was that for most blue collar working class families, a Corvette was within reach. Those days are gone. Time will tell as to whether this is a smart business decision. I am removing my name from the lists I am on, mostly on principle, and over the next year or so will evaluate non-GM options.

Maybe time to buy a boat or an airplane instead.
Or a vacation property somewhere warmer than Canada? (There are always alternatives, if you're willing to look for them ;) )
 
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Scott and Cam you are right on. GM has been trying to stop the cross border profit grab for decades. They have tried limiting or cancelling warranties, financial penalties to dealers, retention incentives etc. The fact of the matter is that the exchange rate GM uses and the actual exchange rate influences this cross border profit. I know of many dealers that their only significant business is wholesale cross border car and truck sales. They are now wealthy from 25 years of this cross border trade. GM is fixing it by upping the price but the pendulum can swing and US cars can come into Canada when they are cheaper, which is a much smaller problem for them. Other car manufacturers use different methods to reduce the cross border used car profit grab.
 
I see a number of members talking about moving to a Porsche, do they sell in Canada at
24% exchange rate or at the 35% bank rate?
What is US vs Canadian pricing?
I haven't seen any complaints about the pricing difference on a Porsche so I'm presuming it
isn't important to potential buyers.
Like adding GM's AFM to a Corvette in the first place. I think most people would generally assume that anyone that can afford to buy one of these supercars, probably isn't too concerned about gas mileage. Although this price increase news has exposed that as questionable.
I run premium in my Wrangler fairly often, and it is, what it is.
 
Scott and Cam you are right on. GM has been trying to stop the cross border profit grab for decades. They have tried limiting or cancelling warranties, financial penalties to dealers, retention incentives etc. The fact of the matter is that the exchange rate GM uses and the actual exchange rate influences this cross border profit. I know of many dealers that their only significant business is wholesale cross border car and truck sales. They are now wealthy from 25 years of this cross border trade. GM is fixing it by upping the price but the pendulum can swing and US cars can come into Canada when they are cheaper, which is a much smaller problem for them. Other car manufacturers use different methods to reduce the cross border used car profit grab.
Taking the "why" arguments a step further, regarding GM being a business and maximizing profit and shareholder value being their goal, why sell so many cars domestically, when the greatest profits are to be made outside Canada and the US? Why sell so many units in the US, when they could clearly get much more for them outside North America? We already know the answer, but it's fun to extrapolate the possibilities on internet forums, as food for thought, indignation and angst aside. At least, for me it is. :cool:
 
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So for guys who got priced out from the new corvette, your alternative now that Challenger and Camaro are dead is now a 2024 Mustang that tops out at $90,000
Or, a "gently" used C8? Available at a dealer near you for usury prices.
They got us coming and going.
 
Why? It also contains ethanol now. You're wasting your money.
"Ontario: the Cleaner Transportation Fuels regulation requires that fuel suppliers blend 10% of renewable content in gasoline from 2020 to 2024. The renewable content requirement increases to 11% in 2025, 13% in 2028, and 15% in 2030 and onwards. The renewable content must emit fewer greenhouse gas emissions than fossil gasoline on a lifecycle basis by 45% before 2030 and 50% from 2030 onward. The regulation also requires fuel suppliers to continue to blend 4% renewable content in diesel. This renewable content must emit 70% fewer greenhouse gas emissions than fossil diesel on a lifecycle basis."
Why bother buying a car that's going to choke to death on it's own fuel in a few years, then?
Why recommend a premium fuel for your Corvette, at all?
 
Next week , Ford is coming out with a mid engine Mustang , that will be built by the same company that builds the GTs. I cannot wait to see the look and price. If it is better than a C8 , it should check GM , to be careful about price increases.
 
Next week , Ford is coming out with a mid engine Mustang , that will be built by the same company that builds the GTs. I cannot wait to see the look and price. If it is better than a C8 , it should check GM , to be careful about price increases.
Bring back the Pantera.
 
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Next week , Ford is coming out with a mid engine Mustang , that will be built by the same company that builds the GTs. I cannot wait to see the look and price. If it is better than a C8 , it should check GM , to be careful about price increases.
Agree, send me information on this car as I have heard nothing about it.
 
Agree, send me information on this car as I have heard nothing about it.
It is rumoured on Ford Authority website and says it will be announced tomorrow. Looks to be also built by the same company in Ontario that built the Ford GT and building the Ford Bronco DR. So my guess it is going to be 'pricey'.
 
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