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Discussion in 'American Cars' started by bob777, Sep 1, 2004.
Z06nut got the pics i posted in his post for some strange reason. more lambo and ferrari dealers.
more dealers! the lambo dealer sells more than 40 cars a month.
thats all the ferrari and lambo dealers i have been to. no carpet.
Oh thats not the point.
sigh, the money gm makes on vettes, if any, is pocket change. think of the factory built and employed that builds them, the high tech gadgetry of the car, which probably took millions of man hours in R&D, marketing, all aluminum 400 horsepower engines, expensive 6 speed transmissions, all that shit. and they sell it for what, 50 grand or so, with 15000 or whatever sold? how many cheap and easy quarter and half ton pickups did they sell last year in comparison?
cars like the corvette, viper, and cobra don't make money, they try to break even, and they draw people to the dealership. i don't care if you believe/agree with me.
They do make money, and not too bad of a profit margin, either. However, it's not like even a few million in profit is anything to GM. They spend that on post-it notes. It is definitely a "halo" car to draw interest and excitement to the brand, and is very succesful in helping to sell other vehicles. It's not that they lose money, it's that it's not there purely as a profit center.
The figure I gave came from the Book "All Corvettes are Red." It is the story of the development of the C5, from 1991-1997.
The reason the figure is so low is because they used GM's size to its advantage and stayed away from the problems of GM size. The all aluminum engine which would be a huge huge investment was very small because it was actually funded mostly by the Truck division. The truck division was developing a family of light wieght V8s to improve gas mileage, emissions, and power. The corvette team spent very little on the engine. The 6 speed transmission is just a Tremac T65 (I think that is the designation). It is used in all sorts of cars (not just GM). Actually it was the automatic transmission that was the biggest hurtle. THe C4 was going to be a transaxle design (with the tranny in the back), but they could not afford to design a transmission case for the rear (something like 150 million dollars to produce). For the C5 the truck divesion again came to the rescue. They actually designed a auto-trans that worked perfectly for the transaxle design and they started to use it in many of SUVs and trucks. Once again they did not have to spend a ton of money (like Porsche would need to). Also the hydro formed rails that are used as the basis for the chasis were funded mostly by the truck group.
Also they used many innovative systems to get the car designed and built using the least number of prototypes and least number of people. The Corvette has been a test bed for many of GMs technologies. I am not saying that the vette makes alot of money compared to full size trucks (because nothing does), but they do alot better then break even.
all big companies do similar cost cutting techniques, that doesn't mean anything. bare and simple: they do not produce and sell enough corvettes for enough money to make a notable profit. i.e, they don't build them for profit, read carrera26s post.
They do make a notable profit, for a small run sports car. GM does not make they for some huge profit, but it still makes tangible money. That not only pays for the original development, but will pay for the C6's development. If only I could start a company that made the profit the vette does.
"for a small run sports car"
I think the point is, GM makes MORE profitable cars. There is an opportunity cost of building the Corvette's too, and this is where GM making a loss comes from... in theory, they *could* build 35,000 shoeboxes instead, and make a heap more profit. They don't, however, because the point of the hero car is not to make profit, but to increase sales of OTHER models, thus increasing profit that way.
Or something :/
Basically, GM makes money on the Vette, but it is alos there to bring people to the dealerships. I have seen many people walk in looking for vettes, and walking out with a Monte Carlo.