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

GOLD72

Thanks again Ken. This is very detailed and informative. I have printed this for my file for handy reference.

GOLD72

northernplus

Ken, can you clarify what the incentive program is that is mentioned at the end of the "Phase II" details that needs to expire for GMS/Supplier programs to be available? Is this "Phase I - Phase II allocation considered a program, and it needs to expire for GMS/Supplier to be available for the Z-06s?

Thanks.

kwikdraw

Ken,
I am number 1 on my dealers list for the car. I called to tell him we can write up an order and submit it this Thursday. He is telling me I can not order the car until November? I do not know what Tier my dealer is in, but this conflicts with what you have said in the past?

OUSchitzo

Probably means your dealer does not have a monthly allocation until November. From my understanding, Dealers have a monthly allocation for each unit they can order on any model vehicle.

corvett66

Sounds very similar to what they did in 2002 for the 50th Anniversary cars. They had Phase 1 and Phase 2 cars then, also.

Ken Fichtner

Answers to some of your questions:

The present supplier and employee plans have an expiration date. This information indicates that the Z06 will be available at some future point. Understand that this information has been published by the distribution folks. The incentive folks may very well exclude the Z06 from any program. In fact I would expect that this will be the case. It is very apparent that this exciting new car will be limited in it's availability. It makes no sense to offer a discount program on a car that many Corvette dealers won't ever get!

Orders may be submitted. Any dealer unwilling to do so is misinformed. Even if a dealer won't have an allocation until a later date, it makes sense to place the order now so that it is price protected.

Have a great day,
Ken Fichtner

donkt

Ken, what does the following statement mean, 'Pattern Z06 orders will be created as necessary during
weekly DOSP cycles.'

Thanks

Don Thompson

Ken Fichtner

Ken, what does the following statement mean, 'Pattern Z06 orders will be created as necessary during weekly DOSP cycles.'

Simply said: Dealers who have an allocation during the weekly Dealer Order Selection Process and haven't any order requests submitted to Chevrolet run the risk of losing the allocation. Therefore, Chevrolet will place a pattern order in production for the dealer so that they don't lose a Z06. The pattern order is an order configured by Chevrolet that is a close match to what is expected to sell, i.e. options, color.

cam30era

Ken, is the Z06 allocation based on 2005 C6 sales, or 2004 C5 Z06 sales?

Ken Fichtner

Corvette Z06 retail production will be allocated to eligible Corvette Dealers using the most current 52-week total retail Corvette sales.

Simply said, the allocations will be based on ALL new Corvette sales for the last 52 weeks regardless of model or model year.

Have a great weekend,
Ken Fichtner