GM losing money on every Chevrolet C8 Corvette
Mid-engine US supercar currently a loss-leader, but more powerful versions set to restore the balanceGeneral Motors has a problem, says a senior source, as it is losing money on almost every Chevrolet C8 Corvette it makes.
According to US mag
a senior insider revealed that the Corvette, that's priced from just $59,995 ($A89,000) in the States costs more money to make than to sell and, unless prices rise by an incredible $20,000 (A$30,000), the US car-maker will not turn a profit.A price rise, thought significant, has now been confirmed for the 2021 US model year, says the GM source.
Losing money on the latest C8 was deliberate, says the insider, citing fears internally within GM that pricing the very basic version from a more realistic $79,995 ($118,000) would have caused existing buyers to 'revolt'.
The reason GM is losing money is the increase in both sophistication of the C8 and the switch from front- to mid-engine that raises build cost.
Helping offset GM's losses on every car it currently builds is most buyers' hunger for options with many spending up to $30,000 in options ($A45k) on their cars.
Even more critical to the C8's survival will be the arrival of both the high-performance Z06 and ZR1 models that have been designed to be far more profitable.
In the US the out-going C7 Z06 is priced at $82,990 ($A122,675) before further upgrades, while the flagship last-gen C7 ZR1 weighs in at $135,000 ($A200,000). There's not yet any indication on how much the C8 Z06 and ZR1 will be priced.
Despite costing just $59,995 ($A89,000) in the US, when right-hand drive Corvettes land in Holden dealerships next year the C8 is tipped to cost a somewhat inflated $150,000.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
