[Z06] IMO GM can not afford to price the 06 Z06 much beyond 58K
#1
Melting Slicks
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IMO GM can not afford to price the 06 Z06 much beyond 58K
I am not going to argue and tell you its not worth 70k or 80k or even 100k. Personally, I would like to be so impresed by it that I feel its worth 500k!
Now here it the reality GM "better" take into consideration when they lay the final #s to paper: If GM has in mind that the new Z06 can attract the "Premuim Brand" customers (IE Porsche, BMW, Mercedes, etc.) to make up for the loss of the "middle class" buyers that will no longer be able to afford a new Z, they REALLY need to think long and hard about the after sales support and service for the Corvettes.
If you have never owned a "premium brand" car then let me tell you that GM's idea of service and support is no where even close to what they offer you.
Hence, if I am going to spend 70k for a car - when/if it goes in for a column lock recall - they HAD BETTER NOT put me in a cheap rental car or try to not even give me a loaner at all. Or the serivce managers that want to give you hell for a cold air intake and void your warranty.
I know I can go on and on - but I think we all know from expericence that the local dealerships can NOT compete on par with premium brand names in serivce and support for a 70k car. I wish it werent true but it is a fact of the matter. And all of those customers that could afford to jump ship to come to Chevy to own a Z06 will be in for a great disappointment when they take it in for serivce and quickly sell and jump ship back where they feel their money is better spent. Not to mention the negative word of mouth advertising.
Of 3 dealerships here in Dallas and between the two C5s I have owned - I have never once been satisfied completly with the visit - whereas it be new door ding, scratch in the paint, reflashing the computer without permission or someones girlfriend leaving thier sunglasses in my console when someone from the dealership felt it was ok to take it for a joy ride.
Blah, blah... I know but think about it. If I am going to spend 70k on a car - there better be a flawless performance on the service and support after the purchase and GM simply can not pull this off.
So I leave you with this thought: GM needs to stay on thier turf that has brought them sucess for so many years and continue to price the new C6 Z06 in relation to the new C6, because after all its the middle class man that truely funds GM and yes, we are the ones that will put up with mediocre support and service and still be happy as hell we have a Vette in our garage!
Now here it the reality GM "better" take into consideration when they lay the final #s to paper: If GM has in mind that the new Z06 can attract the "Premuim Brand" customers (IE Porsche, BMW, Mercedes, etc.) to make up for the loss of the "middle class" buyers that will no longer be able to afford a new Z, they REALLY need to think long and hard about the after sales support and service for the Corvettes.
If you have never owned a "premium brand" car then let me tell you that GM's idea of service and support is no where even close to what they offer you.
Hence, if I am going to spend 70k for a car - when/if it goes in for a column lock recall - they HAD BETTER NOT put me in a cheap rental car or try to not even give me a loaner at all. Or the serivce managers that want to give you hell for a cold air intake and void your warranty.
I know I can go on and on - but I think we all know from expericence that the local dealerships can NOT compete on par with premium brand names in serivce and support for a 70k car. I wish it werent true but it is a fact of the matter. And all of those customers that could afford to jump ship to come to Chevy to own a Z06 will be in for a great disappointment when they take it in for serivce and quickly sell and jump ship back where they feel their money is better spent. Not to mention the negative word of mouth advertising.
Of 3 dealerships here in Dallas and between the two C5s I have owned - I have never once been satisfied completly with the visit - whereas it be new door ding, scratch in the paint, reflashing the computer without permission or someones girlfriend leaving thier sunglasses in my console when someone from the dealership felt it was ok to take it for a joy ride.
Blah, blah... I know but think about it. If I am going to spend 70k on a car - there better be a flawless performance on the service and support after the purchase and GM simply can not pull this off.
So I leave you with this thought: GM needs to stay on thier turf that has brought them sucess for so many years and continue to price the new C6 Z06 in relation to the new C6, because after all its the middle class man that truely funds GM and yes, we are the ones that will put up with mediocre support and service and still be happy as hell we have a Vette in our garage!
#2
Drifting
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I agree on the pricing, but as far as dealer experience I have had nothing but negatives regarding my last three Mercedes and the local dealership. The loaner car which is more of a convenience in that I have several cars, does not offset the multiple return trips due to poor service. Parts not ordered, wrong parts attached, rewired my V1 incorrectly (they were only supposed to replace a fuse), missed diagnosed problems, etc..
On the other hand, when I had a C5, my expectations were pretty low and subsequently I was for the most part satisfied with the service I received. If the base price of the ZO6 is 58K they will be in good shape.
On the other hand, when I had a C5, my expectations were pretty low and subsequently I was for the most part satisfied with the service I received. If the base price of the ZO6 is 58K they will be in good shape.
#3
Burning Brakes
I think you are mistaken. I will pay 66K for the car. You want a dealer letdown? Try some Dodge stores in your Viper. Fortunately, the Viper (and new Z06) are so fabulous that I will put up with a non-Lexus dealer experience, and so will the many others that pony up 66-73K.
#5
[QUOTE=kverges]I think you are mistaken./QUOTE]
I don't! I think he's right on. I feel your pain brutha Porsche & BMW owners want quality and luxury on top of the performance. If GM approaches the luxary car price, they should have put the C6 into Cadillac dealers for service.
Again, do the math. If GM takes $7k profit on 7,000 cars they make a whole lot more than if they take $14k on 2,000 cars.
I don't! I think he's right on. I feel your pain brutha Porsche & BMW owners want quality and luxury on top of the performance. If GM approaches the luxary car price, they should have put the C6 into Cadillac dealers for service.
Again, do the math. If GM takes $7k profit on 7,000 cars they make a whole lot more than if they take $14k on 2,000 cars.
#7
Safety Car
As someone who owns 2 Lexus automobiles and a Corvette, I can honestly say it's like living on 2 different planets getting the cars serviced. When you take your Lexus in to the dealership for maintenance, they give you another vehicle exactly like yours to drive around. My Chevrolet dealership, however, won't even give you a loaner car. How's that for taking care of someone who purchased a $50k car from you? They do offer to drive you around in their courtesy van, though. Yay! The guys in the Lexus service dept. are all well-dressed and very professional while some of the Chevy guys look like they just escaped from prison. I'm not a snob by any means, but it would be really nice if Corvette owners could get a little better treatment at the service dept. than someone bringing in a Cavalier or Malibu Maxx.
#8
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As GM goes upscale with vehicles such as the SSR and as the established upscale market of the Corvette expands, I see this as the premier challenge for GM. GM brands such as Cadillac have a longer warranty, but the guy who spends $60K on a C6 gets less service and less warranty than the guy who buys a $40K CTS.
My personal suggestion? Spin off the cheaper models as a separate brand. Offer the customers of this brand the option to purchase the longer warranties equivilent to the better-covered GM brands. For example, with Lexus/Toyota, the cars are based on the same platforms, with the Lexus being more refined, more expensive and with better service. GM should follow suit. If GM (and Ford)did this, I believe the Germans and Japanese would have a much more difficult time in maintaining market share.
My personal suggestion? Spin off the cheaper models as a separate brand. Offer the customers of this brand the option to purchase the longer warranties equivilent to the better-covered GM brands. For example, with Lexus/Toyota, the cars are based on the same platforms, with the Lexus being more refined, more expensive and with better service. GM should follow suit. If GM (and Ford)did this, I believe the Germans and Japanese would have a much more difficult time in maintaining market share.
#9
At $70K, GM has already factored in the heavily discounted " Chevy " sales and service and image issues. If it were a Porsche - it would be a $135K car, and if it were a Ferrari , it would be a $160 K car , assuming $5K of better interior quality were added.
That's the " Chevy " name , vs Porsche /Ferrari.
$58K for a C6 Z06 as configured with all this unique equipment ( and compared to what that price gets you with the competition ) and vs the mildly different C5 Z06 ? Why should GM give that much charity ? The board of directors wouldn't bother to consider that business case.
That's the " Chevy " name , vs Porsche /Ferrari.
$58K for a C6 Z06 as configured with all this unique equipment ( and compared to what that price gets you with the competition ) and vs the mildly different C5 Z06 ? Why should GM give that much charity ? The board of directors wouldn't bother to consider that business case.
Last edited by usroute66 MKW; 02-01-2005 at 08:52 PM.
#10
Burning Brakes
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Originally Posted by Gary2KC5
Again, do the math. If GM takes $7k profit on 7,000 cars they make a whole lot more than if they take $14k on 2,000 cars.
#11
Melting Slicks
Bottom line to this post is service sucks EVERYWHERE you go! the country is at it's highest level of incompetence in 80 years! Being in the performance business has made it more apparent. It's too bad we know so much about the technical aspects of the car and we need to spend the next 4 months debating over the price! This sucks!!!!
#12
Le Mans Master
I'm hoping that you're right about the $58K, but am prepared for low 60's. We all know customer service is a lost art, that is costing business untold amount of $. I've been so frustrated with getting poor to non-existent customer service in stores, on the web, restaurants, you name it, that I tend to over-tip when I have a good experience. That sucks, but it's reality out there. Being in the service healthcare industry, I therefore take my experience to heart and strive to do my best everyday for my clientele.
#13
Burning Brakes
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Do you really think that the people who are ultimately going to decide the price of the new Z06 are going to sit around a table and factor this nonsense into their equation? Can't you just hear them now " the car costs us $60 k to build, and we really should charge $66 k for it, but the service at our dealerships sux so bad that we should only charge
$ 58k."
$ 58k."
#15
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Originally Posted by Boomer 2
Do you really think that the people who are ultimately going to decide the price of the new Z06 are going to sit around a table and factor this nonsense into their equation? Can't you just hear them now " the car costs us $60 k to build, and we really should charge $66 k for it, but the service at our dealerships sux so bad that we should only charge
$ 58k."
$ 58k."
I am quite sure Dave Hill and others who will ultimly decide this price are not stupid either. They will take into concideration all the realvent statistics, projections, P/L ratios, the limited engine supply, and yes emotions of buyers.
If Chevrolet decides to build limited production exotic car, more power to them. They will sell more great corvettes of any and all models. They will just make the rest of us
Last edited by AU N EGL; 02-02-2005 at 07:31 AM.
#16
Team Owner
No one would have to worry about the quality of their dealer's service if they had not reason to go there in the first place. If Chevrolet, and I'm speaking about the Corvette, wants to improve their after the sale quality, first improve the before the sale quality. To many Corvette owners are having to put up with the poor dealer service because there are two many nagging problems with the car, that should never be there in the first place. Better quality in the car means less visit's to the dealers, thus less bitch'n about the sevice.
#17
Burning Brakes
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Here's my take....Absolute cost diferences between the std. C6 and the Z06 aside, the Bowling Green plant's profit maximization will determine its price.
Look at it this way ... GM can make about 35,000 Corvetes in BG. The say they want to sell about 40% coupes, 40% convertibles and 20% Z06's.
The profit maximization calculas is that they'll estimate how many coupes and convertibles they'll sell and then try to price the Z06 to make sure it takes up most of the remaining plant capacity.
Ergo, if non Z06 Corvettes are forecasting to sell below the 28,000 unit threshold, they'll price the Z06 lower (to sell more) . If the other two models seem to be running at or near a 28,000 unit pace, the $66K base price may be what we'll get.
As for me, I'm probably okay at $60K. Much over that I hike. Nothing to do with the car's intrinsic value. Just my personal car spending threshold.
Cire
Look at it this way ... GM can make about 35,000 Corvetes in BG. The say they want to sell about 40% coupes, 40% convertibles and 20% Z06's.
The profit maximization calculas is that they'll estimate how many coupes and convertibles they'll sell and then try to price the Z06 to make sure it takes up most of the remaining plant capacity.
Ergo, if non Z06 Corvettes are forecasting to sell below the 28,000 unit threshold, they'll price the Z06 lower (to sell more) . If the other two models seem to be running at or near a 28,000 unit pace, the $66K base price may be what we'll get.
As for me, I'm probably okay at $60K. Much over that I hike. Nothing to do with the car's intrinsic value. Just my personal car spending threshold.
Cire
#19
Drifting
Originally Posted by THEDVS1
Heck, if GM improves the service-quality to Lexus-levels, expect a Lexus price!
#20
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I agree 100% with the first post here. I own and have owned both the 04 Z06 and always buy BMW for daily drivers. The overall service expeirnce for the BMW is over the top and the vette is bottom of the barrel. My BMW comes back washed, gased , and rarely has any concerns. My vette has been to the dealer 4 X and has 4200 miles and comes back dirty wth un -explained miles!. Chevy may have a great car in the old or new Z, but the expectations of premuim customers will not be met at the chevy dealer. The only trade off is the vette is a hot ride for the money, but the overall exp is low end.