Question about constraints

BlackOps · 05-10-2005, 05:42 AM

Hi Ken,

In your newsletter you said, "Z51 Sport Suspension Package (Z51): This option package will be constrained due to CAFE requirements. This constraint will be result in approximately 50% of Corvette production being produced with the Z51 option."

What's that mean? The way I read it the Z51 package is being limited to half the Vettes due to environmental requirements. Is that right?

Just curious.

Thanks,
Don

Ken Fichtner · 05-10-2005, 11:08 AM

I am not sure that I would call this an "environmental concern", but rather another situation where the federal government is involved in our businesses. This situation will only worsen as there is an ever increasing amount of pressure being applied to auto manufacturers to meet the Corporate Average Fuel Efficiency Rating (CAFE).

Evidently Corvettes with the Z51 package and a higher numerical (lower ratio) axle have an impact on the plant's overall CAFE rating. Thus the reason for the constraint.

Have a great day,
Ken Fichtner