IMPORTANT – Allocation process for 2006 Corvette Z06

[Ken Fichtner]

Corvette Z06 Allocation Plan The 2006 Corvette Z06 allocation plan is a 2 phase process. While the details of each phase are shown below, there are some key points worth noting. First, not every Certified Corvette Dealer will receive a 2006 Corvette Z06 model. The Z06 model will have its own allocation group - Z06. And, Corvette Z06 retail production will be allocated to eligible Corvette Dealers using the most current 52-week total retail Corvette sales. • Dealers will be able to view current month allocation plus one month outlook • Each Dealer will be mailed a six month allocation outlook • In December, a four month outlook will be communicated based on the most current 52-week sales history • In April 2006, distribution will provide the balance of model year outlook based on the latest 52-week sales history for buildout • The above steps were established to discourage over commitment/selling Phase I Details • Dealers will be placed in Tiers based on their 52 weeks of retail Corvette sale history (June 2004 - May 2005) for the first 3 consensus cycles. - Tier 1 will be comprised of the 25 largest volume Corvette Dealers - Tier 2 will include the largest 125 Corvette Dealers - Tier 3 will expand to include the largest 300 Corvette Dealers • Initial consensus: - June 2005 (for production week 33) - Exclusively to Tier 1 Dealers using the June 2004 - May 2005 sales history • Second consensus: - July 2005 (for production weeks 34 - 36) - Exclusively to Tier 1 & 2 Dealers based on the launch sales data • Third and final Phase I consensus: - August 2005 (for production weeks 37 - 40) - Distributed to Tier 1, 2 & 3 Dealers • Consensed allocations will be "protected", so that Dealers cannot accidentally loose their allocations. Pattern Z06 orders will be created as necessary during weekly DOSP cycles. Phase II Details • Eliminates the assignment of Dealer Tiers. All Certified Corvette Dealers with a June 2004 - May 2005 sales history will be comprehended in the balance of allocation calculations. • The allocation determined by the same formula in phase 1 • Begins with the September 2005 consensus (for production weeks 41 - 45) • Due to the limited production of the Z06 model there will be no guarantee that each Certified Corvette Dealer will receive allocation for a Z06 model • Consensed allocations will continue to be "protected", from accidental loss. Pattern Z06 orders will be created as necessary during weekly DOSP cycles. • Z06 will not qualify for PEP, but will be eligible for EVP Drive & Buy and GMS/Supplier when the current incentive program expires