C7 PRICE INCREASE & EXISTING ORDERS

[WesC5]

Originally Posted by OldJedi

You are 100% correct !!! Raising the base price $2000.00 and the Z51 option that is in 75% of cars produced by $1200.00 has nothing to do with meeting increased demand. If that was the case they would have increased the price of the exposed CF roof and CF dash, both high dollar constraint options. Having suppliers increase the number of parts needed to keep up with demand would have decreased demand and lowered constraint wait time by actually putting more cars into more owners hands.

No this is very simple economics fueled by greed. Take a car that is very high demand and keep increasing the price of it until sales begin to decline because it has reached it's maximum high dollar tolerance limit. That is the point when the majority of perspective buyers no longer feel that the product is worth the dollar amount requested. GM knows that that point is still years away based on the current competitive car market. As many people have stated, it is a hell of a car for the price. And it will continue to be until it reaches it's maximum saturation point or another company steps up and offers a better product at a lower price point.

But to openly state that you raise prices to meet demand, please! It only has to do with making as much profit as possible and striking while the iron is hot. I sure as hell do not see them putting a $3200.00 increase in their truck products. A lot of people will pay the current $3200.00 increase and the upcoming $3200.00 increase for the 2015 models, including myself, but that does not mean I have to like it.

I do understand that in it's target section, there is no other car that can touch it for the money. Even with the increase, it is still way below other comparable, competitive models starting prices. But I also know that GM priced this car with a profit margin at it's original starting point of $52,000.00. So each additional $2,000.00 is strictly additional profit with no other changes to the car whatsoever. GM has us bent over a barrel and we are going to take it or buy some place else. But, they also know there is no other place to buy without spending even more money. At least have the decency to be truthful and tell us the real reason for the price increase. Anybody have some lube, this barrel is cold and I know what is coming is going to hurt!

I agree for the most part.... However, the 3Lt Z51 depending on options is going to run someone about $70-75k. For 15k more a person can pick up the Elvora Lotus. The Z06 will probably just come under 100k.....then you start adding options/tax....you're up there with the Maserati Quattroporte S Q-4, the Lotus Exige (swweeet car) And...entering the neighborhood of the Ashton Martins.....

Me thinks Corvette never wanted to appeal to the "younger generation" as they stated.... They want to play with the "Big Dogs"..... They'll move the "camaro" into the pricing zone of the Corvette.

Sadly this very well may be my last Corvette. If I'm going to look at $100k for a car....it won't be a Corvette...

[markk]

Originally Posted by Richardlord

... Also, does anyone know what "Batching" means in Chevy Speak.

Richard, I don't profess to know what "batching" means in "Chevy Speak", but I suspect it is another term your Crimean friends are taught to keep anxious C7 buyers stuck at status code 1100 at bay. Certainly, there is a "batching" process between status codes 3000 through 3400 to produce the cars as efficiently as possible, and I suppose a certain amount of "batching" occurs during consensus and allocation issuance (they know how many of each type of car they want to and can produce during the production cycle related to the given consensus), but really, what it means to you is that your dealer has not been given an allocation to suit your order. Good thing for you is that I believe FAY has come off constraint, but I also personally believe Z51 will remain at or around 50% for the remainder of the model year (just MHO).

Hang in there; at least if your dealer is sure they will receive an allocation for your order this MY, you will be fortunate enough to have slipped under the price increase.

[OldJedi]

Originally Posted by WesC5

I agree for the most part.... However, the 3Lt Z51 depending on options is going to run someone about $70-75k. For 15k more a person can pick up the Elvora Lotus. The Z06 will probably just come under 100k.....then you start adding options/tax....you're up there with the Maserati Quattroporte S Q-4, the Lotus Exige (swweeet car) And...entering the neighborhood of the Ashton Martins.....

Me thinks Corvette never wanted to appeal to the "younger generation" as they stated.... They want to play with the "Big Dogs"..... They'll move the "camaro" into the pricing zone of the Corvette.

Sadly this very well may be my last Corvette. If I'm going to look at $100k for a car....it won't be a Corvette...

Wes, it will be very interesting to see at what price point they bring in the 2015 Z06. Last years Z06 started at $76,000. It has been proclaimed that "if you can afford last years Z06, you can afford the new Z06". With a loaded Stingray only a few thousand shy of last years Z06 it will be very interesting to see how close their idea of "afford" really is. My warning to prespective 2015 Z06 owners is to order early and do not wait. Chevy has already shown that they have NO problem whatsoever tacking on a few thousand dollar increase for the sole purpose of "keeping up with demand".

[Hulkamaniac]

GM has to find some way to pay for all those recalled vehicles for the ignition problem.

[Richardlord]

I really hate to think this of Chevy, as it is rather crass, but for those of us with C7s on order, Chevy has us locked in and locked up, or so it believes, unless we cancel our orders, which is unlikely as exampled by my order for a Vert as soon as I could order one, for which I shall wait. So, why would Chevy not build my C7 Vert with Z51 & FAY on constraint and yet build C7s with Z51 and/or FAY for unsold lot orders for other dealers? The crass answer is because it can. Chevy has its cake and can make us eat it to. Chevy has got my order that it shall eventually fulfill with no preal ressure to do so now as it knows I shall likely wait as long as it takes, and can provide essentially my car for dealer lots for newby customers who come in to a showroom and are enticed to buy by a C7 with Z51 and/or FAY. Is this too crass to think of Chevy priority building C7s for two in the bush rather than one in hand?

[laborsmith]

Originally Posted by Richardlord

I really hate to think this of Chevy, as it is rather crass, but for those of us with C7s on order, Chevy has us locked in and locked up, or so it believes, unless we cancel our orders, which is unlikely as exampled by my order for a Vert as soon as I could order one, for which I shall wait. So, why would Chevy not build my C7 Vert with Z51 & FAY on constraint and yet build C7s with Z51 and/or FAY for unsold lot orders for other dealers? The crass answer is because it can. Chevy has its cake and can make us eat it to. Chevy has got my order that it shall eventually fulfill with no preal ressure to do so now as it knows I shall likely wait as long as it takes, and can provide essentially my car for dealer lots for newby customers who come in to a showroom and are enticed to buy by a C7 with Z51 and/or FAY. Is this too crass to think of Chevy priority building C7s for two in the bush rather than one in hand?

If Chevy did what you want, there would be lawsuits. This is not conjecture. The process you are suggesting once existed in a somewhat more rudimentary form. There were lawsuits and Chevy lost. Many regional district business center managers accepted demotions or forced early retirements as Chevy moved fulfillment to a way that could withstand law court scrutiny.

This post is based on knowing some of the families involved not on anything I have read. I figure since almost thirty years has passed talking out of school is ok, but if I am wrong I apologize for reviving bad memories.

I understand your complaint, in fact I agree with the underlying reasoning. But whether I agree or not that does not change reality.

Laborsmith

[Richardlord]

Originally Posted by laborsmith

If Chevy did what you want, there would be lawsuits. This is not conjecture. The process you are suggesting once existed in a somewhat more rudimentary form. There were lawsuits and Chevy lost. Many regional district business center managers accepted demotions or forced early retirements as Chevy moved fulfillment to a way that could withstand law court scrutiny.

This post is based on knowing some of the families involved not on anything I have read. I figure since almost thirty years has passed talking out of school is ok, but if I am wrong I apologize for reviving bad memories.

I understand your complaint, in fact I agree with the underlying reasoning. But whether I agree or not that does not change reality.

Laborsmith

I understand and appreciate the Reality Check. However, for 2014, we also are in an Alternate Reality. One nasty Reality Change is that for the first time 2/3rds of Chevy dealers did not get an allocation of even one Vette in the initial roll out, and Chevy severely curtailed the allocation for all but the largest dealers all the while shipping C7s overseas. Then, Chevy greatly underestimated the Z51 and Carbon Fiber demands resulting in Constraints such that it cannot fulfill orders for months upon months. How, then, Chevy decides which dealers get what C7s for which customers subject to parts availability appears to be more of a function of happenstance and luck than following some legal proscription and plan. I would love to know the Chevy detailed production plan and how it relates to the legal foundation Chevy’s lawyers concocted for C7 production. At this point, it appears Harpo is the production planner and Groucho is the lawyer.

[laborsmith]

Welcome to the auto sales world. I have ordered eleven vehicles and after the first two I vowed never to go through that again. The fact that the Sonic in my driveway was ordered only proves how good I am at sticking to that vow.

There is factual info you can look at: the C7 initial allocations were based on dealer orders for the 2012 model year by the top 900 C6 dealers compressed to a half year then adjusted after three months to cover the whole model year. So if one dealer completed 500 orders for 2012 that dealer started with about that number. When the added allocations (actually guide numbers) came up in November they were adjusted to reflect the proportions from the 2012-13 model year. These proportions will stay in effect throughout the C7 production run.

The Z51 was on limited constraint through the whole of the first year of C6 production and I for one predicted it would be the same for the C7. If the number of first year C7 sales was in the middle twenty thousands (a reasonable projection given the economy) the Z51 constraints would still be there but not as limiting as now with it looking like C7 orders will be in the low thirty thousands.

The exposed carbon fiber roof is another story. But my C6 had two recalls for its removable roof panel so I am not too surprised.

Finally, allocations are a two way street: Les Stanford Chevrolet was number three in Corvette sales for decades and is what, number six now I think? They passed on some allocations (being prudent) and other dealer(s) picked them up hoping the C7 would be successful enough to justify the gamble. But Stanford did not pass on too many since it is still a high volume Corvette dealer.

I do not have the answer on a better way than what we have. I know the problem with your proposed way: how does Chevy make sure every retail sold is a bona fide order?

Laborsmith

[2cnd chance]

It "is" the law of "supply and demand". They want demand to slow down to what they can supply...therefore increase the price. It works, as now I will move on from buying a Corvette. It's still a great car however I don't need it that bad.

[Richardlord]

Originally Posted by laborsmith

Welcome to the auto sales world. I have ordered eleven vehicles and after the first two I vowed never to go through that again. The fact that the Sonic in my driveway was ordered only proves how good I am at sticking to that vow.

There is factual info you can look at: the C7 initial allocations were based on dealer orders for the 2012 model year by the top 900 C6 dealers compressed to a half year then adjusted after three months to cover the whole model year. So if one dealer completed 500 orders for 2012 that dealer started with about that number. When the added allocations (actually guide numbers) came up in November they were adjusted to reflect the proportions from the 2012-13 model year. These proportions will stay in effect throughout the C7 production run.

The Z51 was on limited constraint through the whole of the first year of C6 production and I for one predicted it would be the same for the C7. If the number of first year C7 sales was in the middle twenty thousands (a reasonable projection given the economy) the Z51 constraints would still be there but not as limiting as now with it looking like C7 orders will be in the low thirty thousands.

The exposed carbon fiber roof is another story. But my C6 had two recalls for its removable roof panel so I am not too surprised.

Finally, allocations are a two way street: Les Stanford Chevrolet was number three in Corvette sales for decades and is what, number six now I think? They passed on some allocations (being prudent) and other dealer(s) picked them up hoping the C7 would be successful enough to justify the gamble. But Stanford did not pass on too many since it is still a high volume Corvette dealer.

I do not have the answer on a better way than what we have. I know the problem with your proposed way: how does Chevy make sure every retail sold is a bona fide order?

Laborsmith

Well Said

As for bona fide orders, even my dealer has a problem with Chevy on this as to my order - Does not make sense to not fulfill sold orders when it can as my dealer has allocation, and not what Chevy is willing to provide my dealer even though Chevy can and does produce cars with my options as unsold lot orders to other dealers - At what point does Chevy produce my C7 as ordered where it does violate some legality? - But, this would involve some real planning and coordination - This is like ObamaCare on wheels.

I have skin in the game, and Chevy and dealers could require the same on orders - Most of us had to put down deposits, and for a $1,000 under MSRP, I verbally promised my dealer I would not back out or it could keep the grand I put down - My local dealer has since released me from that promise given the wait, but I believe in buying locally, and so I shall stick with my dealer as long as it is treating me right as is its rep with my local Corvette Club, which I just joined - I am determined to get my C7 as ordered through my dealer - Just seems that as a sold order, I am at the bottom of Chevy's priority list to produce my C7 as ordered, and especially if it involves any bother related to production constraints.

AND, Chevy is bound to produce my C7 as ordered at the original price - However, it now has even less incentive to timely produce my C7 when it can sell lot cars and new orders at prices higher than mine - I hate to think of Chevy as doing this, but a Jaded Jedi am I at this point.

[laborsmith]

I do agree that where the dealer's allocation comes up and there is also a retail sold order in hand Chevy should be able to figure out a way to make that work. If the desired constraaint was 0 nationwide, no, but if the constraint is limited, there should be a way to match the order and the allocation. The ordering process, as I understand it, with its multiple passes before an order goes past 2000 seems amenable to the process

If it helps, I on other cars ordered have gone through the order can not proceed due to constraints purgatory. At times I would question the wisdom of holding out for what I wanted, but in the end I have never been disappointed that I waited.

If the % of retail sold C7 orders was similar to Malibu or Cruze retail sold orders, I suspect you would have your order in your garage by now but for some reason Corvette in general and this version in particular seems to have attracted a very high number of retail sold customers. I blame the internet. If it wasn't for the internet, many fewer people would be tempted to attempt to order.

Laborsmith

[Richardlord]

Originally Posted by laborsmith

I do agree that where the dealer's allocation comes up and there is also a retail sold order in hand Chevy should be able to figure out a way to make that work. If the desired constraaint was 0 nationwide, no, but if the constraint is limited, there should be a way to match the order and the allocation. The ordering process, as I understand it, with its multiple passes before an order goes past 2000 seems amenable to the process

If it helps, I on other cars ordered have gone through the order can not proceed due to constraints purgatory. At times I would question the wisdom of holding out for what I wanted, but in the end I have never been disappointed that I waited.

If the % of retail sold C7 orders was similar to Malibu or Cruze retail sold orders, I suspect you would have your order in your garage by now but for some reason Corvette in general and this version in particular seems to have attracted a very high number of retail sold customers. I blame the internet. If it wasn't for the internet, many fewer people would be tempted to attempt to order.

Laborsmith

Agreed

Always impressed by your knowledge of all things Corvette

On holding out for what I want, I figure I shall never be disappointed and regret getting something I later determined I did not have to have, but I would always be disappointed and regret not getting something that I really wanted and for which I should have held out. Words to live and buy by. Yes, I could have had my Z51 Vert by now if I did without factory FAY, and yes I could have picked up an after market carbon fiber dash, but to me there is value in having it factory and on my order record, invoice, and sticker.

Thanks again Laborsmith

[Stingray]

Originally Posted by Richardlord

Agreed

Always impressed by your knowledge of all things Corvette

On holding out for what I want, I figure I shall never be disappointed and regret getting something I later determined I did not have to have, but I would always be disappointed and regret not getting something that I really wanted and for which I should have held out. Words to live and buy by. Yes, I could have had my Z51 Vert by now if I did without factory FAY, and yes I could have picked up an after market carbon fiber dash, but to me there is value in having it factory and on my order record, invoice, and sticker.

Thanks again Laborsmith

Richard... just an FYI. As an alternative, the Carbon Fiber Dash Plate (FAY option) is available post-delivery of your C7 via various online GM parts vendors or over your local GM parts counter. No need to go aftermarket. The FAY dash plate is the same exact OEM dash as what BG uses... e.g. GM part #22826760 ($491.67).

[Richardlord]

Originally Posted by Stingray

Richard... just an FYI. As an alternative, the Carbon Fiber Dash Plate (FAY option) is available post-delivery of your C7 via various online GM parts vendors or over your local GM parts counter. No need to go aftermarket. The FAY dash plate is the same exact OEM dash as what BG uses... e.g. GM part #22826760 ($491.67).

Thanks for the heads-up

I'll stick it out until the weather gets too good, which hopefully shall be sooner than later - Then, I'll assess the situation with my dealer - I may very well go down the road you recommended and have my dealer get my Z51 Vert without FAY and get it post-delivery if it comes to that