GM loses money on every 2020 Corvette under $80,000
Talk about taking one for the team.
It seems that the 2020 Chevrolet Corvette’s starting price of under $60,000 was just too good to be true. No, not for us, but for GM, and they’re totally okay with that. A source from GM has talked to Motor Trend about an interesting revelation; GM will continue to lose money on every all-new Chevrolet Corvette they sell under $80,000. The source also confirmed that the price of the 2020 Chevrolet Corvette would rise by 2021, with rumored additional increases in the following years. But would it be high enough to cover the costs in the long run?
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We’ve heard about other manufacturers taking a risk by selling halo cars with weird specs or market pricing, taking a loss on them, and hoping that the bread and butter models take on the burden, so this isn’t something totally new. What’s interesting is the supposed strategy of GM. You see, according to the source, the budget set for the C8 project was pegged at $79,995, taking into consideration the new configuration and redesign. This is a huge jump from the previous C7 pricing, and in order for customers not to complain, Chevy is okay with taking the loss. They’re also hoping that with an extensive list of accessories and extra bits, buyers would turn their $60,000 Corvette into something a little bit closer to $80,000.
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Also important is the pricing for the upcoming Z06 and ZR1. The Source says that the sweet spot for profit and sales volume is between the $80,000 and $100,000 mark. Naturally, once the car breaks into the more expensive six digit territory, volume drops considerably. We just have to wait and see how Chevrolet and GM play the game with their high price, low volume cars, and hope they don’t ruffle too many feathers or lose too much on a risk.
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