Why the high price increase? Lets look at the numbers...

[Mr.Corvette]

This is an excellent analysis. Do you have any information on the hst portion of pricing since perhaps prior to this price hike the exchange amount plus 13% hst brought the total cost on par with US prices and presumably GM Canada gets the benefit of hst recovery.

The analysis is done on the base price of the car as our provincial and federal taxes are higher than anywhere in the US. GM would only recover HST on what is paid by them and as far as I know they don't pay for the cars they order for internal use until the cars are sold off. Our cars even with the tax have been cheaper to buy than buying one in the US and paying US dollars and then importing it, if you had a US address to buy new in the past. The numbers will be closer now with the latest increase, but exporting isn't allowed on new cars on either side of the border.

 

[Rruuff Day]

Yes, and they can be fined for doing it and fined if an advertised vehicle price is not the actual price.

"Advertised vehicle price" is the key here. If they advertise a price for a specific vehicle they must abide by that price (not withstanding the BS dealer charges they tack on). But they can advertise a vehicle with any price they want on it and sell it for that price. Most that charge over MSRP will advertise the vehicle with a 'call dealer for availability and price.' MSRP is only suggested (thus the S).

 

[1st Vette]

The CEO of GM is using Corvette to keep GM in the black.Turn out & price increase.

Come year end Corporate accounting, Corvette sales are a rounding error.

 

[1500cc]

Maybe the extra $20M/year they're getting from Canadians will fund a mid-cycle refresh

 

[DenisC8]

Maybe the extra $20M/year they're getting from Canadians will fund a mid-cycle refresh

C8 is perfect the way it is

 

[ZoraD]

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!!

The analysis is done on the base price of the car as our provincial and federal taxes are higher than anywhere in the US. GM would only recover HST on what is paid by them and as far as I know they don't pay for the cars they order for internal use until the cars are sold off. Our cars even with the tax have been cheaper to buy than buying one in the US and paying US dollars and then importing it, if you had a US address to buy new in the past. The numbers will be closer now with the latest increase, but exporting isn't allowed on new cars on either side of the border.

Does GM Canada pay hst on materials they buy to manufacture cars and then do they charge dealers hst on all of the Cars they sell to dealers in Canada and then recover hst they paid?

 

[1st Vette]

Does GM Canada pay hst on materials they buy to manufacture cars and then do they charge dealers hst on all of the Cars they sell to dealers in Canada and then recover hst they paid?

And then the dealership charges you HST when you buy the vehicle. It’s like buying fuel. Road tax, carbon tax, provincial tax and then tax on the tax at the till . And not even a kiss .

 

[DW Ruby]

Does GM Canada pay hst on materials they buy to manufacture cars and then do they charge dealers hst on all of the Cars they sell to dealers in Canada and then recover hst they paid?

Yes.

 

[DenisC8]

guys who want a C8 and don't want to pay 2024 price, have a limited time to pick up a used 2020-2023 before the used market starts to reflect the increase in MSRP. There are only 378 "real" Used C8s for sale on autotrader in the entire Canada

 

[Hanko_]

Does GM Canada pay hst on materials they buy to manufacture cars and then do they charge dealers hst on all of the Cars they sell to dealers in Canada and then recover hst they paid?

They may pay it up front but it's deducted as "Business expense" when the accountant gets it. So no.

 

[JCWP]

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.

Too much to read and digest for an old guy like me; suffice it to say that the B.G. plant is a separate profit center and prices charged for the corvette have to be such to demonstrate a required ROC to justify it's existence.

 

[DAL]

Why? It also contains ethanol now. You're wasting your money.

Not here in my area (Okanagan) it remains 94 proof sans Ethanol

 

[DAL]

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.

You are quite correct, a loaded C8 of any variety, is getting well beyond the grasp of “Joe six-pack, and rightly so… it is now a totally different car.

I think we already know if ”this is a good decision” Caribocreek, they are selling like hotcakes at a car show and that is why the prices are rising. My HTC is now $50K (with all the taxes) more than what I paid for it in 2020. We all knew in 2020 that the C8 was a complete “steal” at $60K USD. Vette has enjoyed the exposure and sales it received at the entry pricing, now they have established market-share & will sell the C8 closer to its true market value. Happy Motoring!