The Corvette Business Model Sucks
#1
Racer
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The Corvette Business Model Sucks
The good news: Corvette continues to bear great engineering, design, and - lately - quality. It truly is an iconic brand and the world's least expensive ride worthy of being called a super-car. Gotta love the Corvette.
The bad news: Corvette is trying to swim forward with two anvils around its neck. One is its corporate parent, GM, poster child for 'Struggling Corporate Giant.' Probably can't do much about that - the only 'American' car companies not circling the bowl are those with a foreign name and 'NA' at the end of their corporate title (BMW-NA, Toyota-NA, etc.).
The second is Corvette's placement in the Chevrolet Division and sales only through Chevy dealerships, which - with notable exceptions like this blog's sponsors - use the same sales force and the same sales techniques/tricks/bull****-approach to a potential Corvette buyer who wants to pay cash as they do to someone maybe hoping she has enough credit-worthiness to qualify for purchase of a stripped-down Aero at minimum monthly payment over maximum number of months maybe kinda hope hope.
I like BMWs, own two, and probably will replace my 335i vert with the new-model Z4 coming out next year. Might prefer a Corvette, but can't even get a test ride after I say I'm a year out from end-of-lease. If I decide on another BMW, the car will be built to my spec sheet, no hassle, no effort to sell me a hangar queen off the lot. If I start at a Chevy dealer on the Corvette, max push to buy and move the car today and no open accommodation for future purchase of the car I want to order.
How about factory delivery? BMW puts you up at a nice Marriott in Spartanburg, handles all the local transport, and schleps you to the Performance Delivery Center where you get a morning of driving instruction and intensive track time in a car like yours, followed by an extensive delivery go-over-everything-in-the-car drill by a BMW expert, and with a factory-&-museum tour thrown in.
Corvette provides a comparable delivery experience, but no track time, no help at all with lodging or transport, and no easy factory tour scheduling. BMW Performance Delivery: free. Corvette: $500. Oh, and if the BMW you bought was an M5 or M6 (cars that perform like a Corvette), BMW extends your track experience to a full day, pays hotel, and you can do this later in the year even if you don't pick up the car at Spartanburg.
Here's the problem: new Corvettes and new BMWs are purchased by folks who can afford to buy a new Corvette or new BMW. They know value and they know hassle. BMW caters to this crowd. Corvette doesn't. BMW marketing is superb. Corvette's is brand-reliant and pretty crass (ever try to get a Corvette brochure? ever try to find out extensive info on a model at the official website? - huge contrast with BMW, who make both really easy).
Last rant: BMW makes maintenance of your new Bimmer pretty easy: it's free for four years and all the mechanics are factory trained. Corvette: welcome to a Chevy service operation and good luck.
Every time I look to maybe going back to Corvette I bang into the Chevy approach and a crappy dealership. I'd be happy to buy a new Corvette were it an easy, fun, adult experience. Wonder how many other potential Corvette buyers have been turned off like I've been? Aaarrrgghhh.
The bad news: Corvette is trying to swim forward with two anvils around its neck. One is its corporate parent, GM, poster child for 'Struggling Corporate Giant.' Probably can't do much about that - the only 'American' car companies not circling the bowl are those with a foreign name and 'NA' at the end of their corporate title (BMW-NA, Toyota-NA, etc.).
The second is Corvette's placement in the Chevrolet Division and sales only through Chevy dealerships, which - with notable exceptions like this blog's sponsors - use the same sales force and the same sales techniques/tricks/bull****-approach to a potential Corvette buyer who wants to pay cash as they do to someone maybe hoping she has enough credit-worthiness to qualify for purchase of a stripped-down Aero at minimum monthly payment over maximum number of months maybe kinda hope hope.
I like BMWs, own two, and probably will replace my 335i vert with the new-model Z4 coming out next year. Might prefer a Corvette, but can't even get a test ride after I say I'm a year out from end-of-lease. If I decide on another BMW, the car will be built to my spec sheet, no hassle, no effort to sell me a hangar queen off the lot. If I start at a Chevy dealer on the Corvette, max push to buy and move the car today and no open accommodation for future purchase of the car I want to order.
How about factory delivery? BMW puts you up at a nice Marriott in Spartanburg, handles all the local transport, and schleps you to the Performance Delivery Center where you get a morning of driving instruction and intensive track time in a car like yours, followed by an extensive delivery go-over-everything-in-the-car drill by a BMW expert, and with a factory-&-museum tour thrown in.
Corvette provides a comparable delivery experience, but no track time, no help at all with lodging or transport, and no easy factory tour scheduling. BMW Performance Delivery: free. Corvette: $500. Oh, and if the BMW you bought was an M5 or M6 (cars that perform like a Corvette), BMW extends your track experience to a full day, pays hotel, and you can do this later in the year even if you don't pick up the car at Spartanburg.
Here's the problem: new Corvettes and new BMWs are purchased by folks who can afford to buy a new Corvette or new BMW. They know value and they know hassle. BMW caters to this crowd. Corvette doesn't. BMW marketing is superb. Corvette's is brand-reliant and pretty crass (ever try to get a Corvette brochure? ever try to find out extensive info on a model at the official website? - huge contrast with BMW, who make both really easy).
Last rant: BMW makes maintenance of your new Bimmer pretty easy: it's free for four years and all the mechanics are factory trained. Corvette: welcome to a Chevy service operation and good luck.
Every time I look to maybe going back to Corvette I bang into the Chevy approach and a crappy dealership. I'd be happy to buy a new Corvette were it an easy, fun, adult experience. Wonder how many other potential Corvette buyers have been turned off like I've been? Aaarrrgghhh.
#2
Race Director
BMW is all about the prestige.... and pampering the owners to protect the profit margin....
Corvette is about the performance.
That is why the marketing approach is different....
Corvette is about the performance.
That is why the marketing approach is different....
#3
Safety Car
You're absolutely right of course. Sounds like BMW is the car for you if that is the treatment you expect (demand?). Good luck with it!
BTW, there's no reason a smart person, in today's marketplace need be treated the way you seem to have been by the Chevy dealers. From knowledge gathered here. I found a smart, honest, mature, professional dealer (MacMulkin's) who made the buying experience a pleasant and positive one. Your move...
BTW, there's no reason a smart person, in today's marketplace need be treated the way you seem to have been by the Chevy dealers. From knowledge gathered here. I found a smart, honest, mature, professional dealer (MacMulkin's) who made the buying experience a pleasant and positive one. Your move...
Last edited by Modshack; 06-22-2008 at 12:59 PM.
#4
Melting Slicks
I have to agree with you on Chevy's sales tactics. You can't beat BMW's approach...it would have been nice if my Corvette had come with those sales features. I'm just not impressed with the BMW vehicle and figure all those ammenities you get before the sale, are part of the overall price of their automobiles... Nothing in life is "free".
#5
I have to agree with you. I'm a reasonably wealthy person, and
Corvette specialist at dealership treats me very well. But the
sales manager is a fuel injected, flaming A H. Hassling my salesman
as to why he didn't sell the car today. Sending other salesmen out
into the lot to listen into conversations, and otherwise inject himself
into the proceedings. Had the specialist not been such a good guy,
I would never return to that dealership.
I never shopped at a BMW dealership, but I assume such trashy
behavior would never happen. Grossly inappropriate for their
clientele.
But I can't imagine anything is going to change. Corvette has been
with Chevy for 55 years. I can't see it changing now.
Joe
Corvette specialist at dealership treats me very well. But the
sales manager is a fuel injected, flaming A H. Hassling my salesman
as to why he didn't sell the car today. Sending other salesmen out
into the lot to listen into conversations, and otherwise inject himself
into the proceedings. Had the specialist not been such a good guy,
I would never return to that dealership.
I never shopped at a BMW dealership, but I assume such trashy
behavior would never happen. Grossly inappropriate for their
clientele.
But I can't imagine anything is going to change. Corvette has been
with Chevy for 55 years. I can't see it changing now.
Joe
#6
Team Owner
I really do not care about the difference in the delivery experience between the Vette and the BMW or how you may be treated at the dealership. I wanted and got the best sports high performance car dollar for dollar. That is what I will be living with each day, the looks, the power and thrill of ownership. I get treated with respect based on how I conduct myself and how I treat others. BMW can do what they want and I am sure they do it well but you know what it is not a Corvette so if I buy a BMW because of a few "perks" who am I really punishing, my question is do I want the little perks or the beauty and the beast of the Corvette.
#7
Team Owner
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St. Jude Donor '15
"In honor of jpee"
And if you know quite a bit about "business models" and finance, you know that BMW for instance is losing nothing in the way of money on its "experience." Not in its everything included warranty, either. And we all know why they HAD to go to that, don't we?
As to the Corvette, Chevrolet and GM "business model", I'm sure there are some alternatives out there. But if you really look closely at the numbers, it is equally conceivable that a few years after a split, the Corvette nameplate would be sold to a foreign company, or discontinued altogether.
Run the numbers, all the numbers, not just the ones you like, or want to see. Find out, if you don't already know, how much capital it takes to bring a new model to production, and beyond. Look at the profit margins, the net profit, the financing costs, etc., and then make a pronouncement like you did. It won't happen.
As to the Corvette, Chevrolet and GM "business model", I'm sure there are some alternatives out there. But if you really look closely at the numbers, it is equally conceivable that a few years after a split, the Corvette nameplate would be sold to a foreign company, or discontinued altogether.
Run the numbers, all the numbers, not just the ones you like, or want to see. Find out, if you don't already know, how much capital it takes to bring a new model to production, and beyond. Look at the profit margins, the net profit, the financing costs, etc., and then make a pronouncement like you did. It won't happen.
#9
Le Mans Master
Member Since: Aug 1999
Location: N Carolina 08 Z51 Coupe
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I really do not care about the difference in the delivery experience between the Vette and the BMW or how you may be treated at the dealership. I wanted and got the best sports high performance car dollar for dollar. That is what I will be living with each day, the looks, the power and thrill of ownership. I get treated with respect based on how I conduct myself and how I treat others. BMW can do what they want and I am sure they do it well but you know what it is not a Corvette so if I buy a BMW because of a few "perks" who am I really punishing, my question is do I want the little perks or the beauty and the beast of the Corvette.
#10
Drifting
You're absolutely right of course. Sounds like BMW is the car for you. Good luck with it!
BTW, there's no reason a smart person, in today's marketplace need be treated the way you seem to have been by the Chevy dealers. From knowledge gathered here. I found a smart, honest, mature, professional dealer (MacMulkin's) who made the buying experience a pleasant and positive one.
BTW, there's no reason a smart person, in today's marketplace need be treated the way you seem to have been by the Chevy dealers. From knowledge gathered here. I found a smart, honest, mature, professional dealer (MacMulkin's) who made the buying experience a pleasant and positive one.
I've had two BMWs and the 2008 Corvette has been better than both. Also agree, Tommy is a class act.
#11
Le Mans Master
Well, I've owned three BMW's...a 5 series sedan, a Z3, and a Z4. All were bought and serviced by a fantastic dealership in Vermont...beautiful showroom, professional service and sales personnel, and a complimentary shuttle service while your car is in for service. This dealership did everything right, and treated its customers like they were special.
My past experiences with other dealerships were mixed at best, some of the worst being Toyota and Honda. On the other hand, my last two family sedans have been Audis and I've had very positive experiences with my Audi dealer. In any case, I didn't expect much when I started out looking for my first C6 in 2004. I hit a couple of the stereotypical dealerships with that "don't bother me, I'm busy with personal business" attitude.
I finally found a local dealer who actually shocked me. The salesman I talked with was friendly and very knowledgeable. He faxed me any information I requested and got me an allocation for my 2005 when promised. The sales manager took pictures of my car as it was being delivered and forwarded them to me as the car was being unloaded. They let me watch as the car was being prepped. In the four years I owned the car, the service department treated my C6 as if it were their own, always did the work properly, and always provided me with a loaner vehicle. Now that it's time for a 2009, I gladly placed the order with this same dealership. They're a small dealership, so I'll have to wait for my order allocation to finally be accepted by GM, but they've earned my loyalty so I'm willing to endure the additional delay.
So yes, there are exceptional GM dealerships out there. They are capable of providing the same level of service that you'll find with the best of the European dealerships. It's true that there are also way too many poor dealers who treat their customers like an inconvenience, but those are the guys you steer clear of. Poor dealers, BTW, are not the exclusive territory of GM, and I've seen some awful BMW, Audi, and MB dealerships as well. Not as many, granted, but a prestige brand is no guarantee of good customer service.
I agree that GM could, and should, work on improving the quality of their dealer network and strive for a more consistent approach. Still, there are many fine GM dealers out there and they are more than capable of providing you the service you deserve and expect, be it a Cobalt or a Corvette you're buying.
My past experiences with other dealerships were mixed at best, some of the worst being Toyota and Honda. On the other hand, my last two family sedans have been Audis and I've had very positive experiences with my Audi dealer. In any case, I didn't expect much when I started out looking for my first C6 in 2004. I hit a couple of the stereotypical dealerships with that "don't bother me, I'm busy with personal business" attitude.
I finally found a local dealer who actually shocked me. The salesman I talked with was friendly and very knowledgeable. He faxed me any information I requested and got me an allocation for my 2005 when promised. The sales manager took pictures of my car as it was being delivered and forwarded them to me as the car was being unloaded. They let me watch as the car was being prepped. In the four years I owned the car, the service department treated my C6 as if it were their own, always did the work properly, and always provided me with a loaner vehicle. Now that it's time for a 2009, I gladly placed the order with this same dealership. They're a small dealership, so I'll have to wait for my order allocation to finally be accepted by GM, but they've earned my loyalty so I'm willing to endure the additional delay.
So yes, there are exceptional GM dealerships out there. They are capable of providing the same level of service that you'll find with the best of the European dealerships. It's true that there are also way too many poor dealers who treat their customers like an inconvenience, but those are the guys you steer clear of. Poor dealers, BTW, are not the exclusive territory of GM, and I've seen some awful BMW, Audi, and MB dealerships as well. Not as many, granted, but a prestige brand is no guarantee of good customer service.
I agree that GM could, and should, work on improving the quality of their dealer network and strive for a more consistent approach. Still, there are many fine GM dealers out there and they are more than capable of providing you the service you deserve and expect, be it a Cobalt or a Corvette you're buying.
Last edited by StanNH; 06-22-2008 at 09:37 AM.
#12
Burning Brakes
It is a Chevy. Can't change that. If you want a Vette, you gotta deal with it. Having said that...... some dealers are much better than others. The folks I deal with are actually pretty good and the service guys are outstanding.
Now if a guy is truly as wealthy as some here might suggest they are, you can get a high performance vehicle and get your a$$ kissed by the dealer too.....
911 Turbo or GT2
BMW M6
SLR McLaren
etc.
Now if a guy is truly as wealthy as some here might suggest they are, you can get a high performance vehicle and get your a$$ kissed by the dealer too.....
911 Turbo or GT2
BMW M6
SLR McLaren
etc.
#13
I'm going to look at a CTS for my wife today. I expect to be kidnapped and spend four to five hours doing what could be done in one hour. I dread it.
I looked at a Toyota for my daughter last month. It was a similar bad experience. I have never been to a BMW dealership. Are they really that different?
Also, I don't tell the salesman that I will pay cash for a car until we are in the price haggling stage. Should I tell them sooner? Will I be treated better?
I looked at a Toyota for my daughter last month. It was a similar bad experience. I have never been to a BMW dealership. Are they really that different?
Also, I don't tell the salesman that I will pay cash for a car until we are in the price haggling stage. Should I tell them sooner? Will I be treated better?
#14
Team Owner
OK,I stopped reading after "my lease is a year out..etc"!Go back in a year when the sales guy might have a shot at actually making a sale!!COMMISSIONS get paid monthly-weekly,not yearly! What's there today won't even be a memory in a year.
#15
Safety Car
Every time I look to maybe going back to Corvette I bang into the Chevy approach and a crappy dealership. I'd be happy to buy a new Corvette were it an easy, fun, adult experience. Wonder how many other potential Corvette buyers have been turned off like I've been? Aaarrrgghhh.
#16
Melting Slicks
My daughter has a BMW and truly likes the car.
I have not experienced the tactics you describe at the dealerships where I have purchased my cars. Sorry to hear that type of thing take place.
With all of my Cadillac's, I have been treated very well, so I cannot relate to your experiences.
Based upon your posting, I believe that you would not be happy with any vehicle other than a BMW. It is a very good car, I know you will enjoy it.
Happy driving!
I have not experienced the tactics you describe at the dealerships where I have purchased my cars. Sorry to hear that type of thing take place.
With all of my Cadillac's, I have been treated very well, so I cannot relate to your experiences.
Based upon your posting, I believe that you would not be happy with any vehicle other than a BMW. It is a very good car, I know you will enjoy it.
Happy driving!
#17
Melting Slicks
100% agree about the chevy dealerships - very low class, very typical car sales, not at all pleasant to go to...
Whats worse is that the service department is even worse, I don't think I ever had a good experience at a GM service dept, EVER...
now, I can't really compare GM to BMW bc I never bought a BMW, but I can totally agree with your points about GM...
The funny thing is that I was able to put up with the problems up to this point bc in my mind nothing compares to bang for the buck performance offered by GM (some of my cars: Trans Am, Z28, GTO, Corvette). But as the need to have the fastest car on the road diminishes (getting older), I think more likely than not, my next car will be either a BMW or Audi or Porshe...
If GM made the Vette a seperate brand, or perhaps sold thru Cadillac with the right service specialists who know these cars well, I would be a Vette owner for life...
Whats worse is that the service department is even worse, I don't think I ever had a good experience at a GM service dept, EVER...
now, I can't really compare GM to BMW bc I never bought a BMW, but I can totally agree with your points about GM...
The funny thing is that I was able to put up with the problems up to this point bc in my mind nothing compares to bang for the buck performance offered by GM (some of my cars: Trans Am, Z28, GTO, Corvette). But as the need to have the fastest car on the road diminishes (getting older), I think more likely than not, my next car will be either a BMW or Audi or Porshe...
If GM made the Vette a seperate brand, or perhaps sold thru Cadillac with the right service specialists who know these cars well, I would be a Vette owner for life...
Last edited by ohmy; 06-22-2008 at 09:57 AM.
#18
Le Mans Master
I'm in retail sales and have owned my business for 34 years now. If I treated my customers like that, I wouldn't have lasted a year. People coming in to "window shop" are a huge part of every retail business and, very often, turn into future cash customers. No successful salesperson can ignore this pool of potential customers and survive.
#19
Le Mans Master
I Have a friend who drives a Mercedes. He took it in for an oil change which was free BTW. The dealer noticed a dent in the center console that was caused when his E-pass transponder fell off the windshield (Before he took it in for service). They replaced it. No charge. Need I say more.
#20
Melting Slicks
I Have a friend who drives a Mercedes. He took it in for an oil change which was free BTW. The dealer noticed a dent in the center console that was caused when his E-pass transponder fell off the windshield (Before he took it in for service). They replaced it. No charge. Need I say more.