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GM Warns Dealers Against Market Adjustments on Z06



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 4 months ago '04        #1
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JayR04  topics gone triple plat - Number 1 spot x2
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GM Warns Dealers Against Market Adjustments on Z06
 

 
Other brands should follow suit
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The C8 Corvette Stingray is in its third model year and demand is showing no sign of dropping off. Now with the highly-anticipated 2023 Corvette Z06 right around the corner, we’ve become very concerned about how some Chevrolet dealers are looking at the new American sports car as a cash cow with plans to generate as much profit as possible above and beyond the Corvette’s Manufacturer’s Suggested Retail Pricing (MSRP) at the expense of Corvette buyers.


As more and more stories about dealer malfeasance come to light that includes everything from demanding thousands of dollars in Market Adjustments after the car arrives to intentionally screwing up orders so that customers walk away from the deal, it’s become apparent to GM that it really needs to start policing their dealers better when it comes to selling these in-demand vehicles. And it is not just the C8 Corvette that dealers are targeting for huge price increases. We also have the upcoming Silverado EV, the GMC Hummer EV, and the Cadillac LYRIC which have also garnered much interest from consumers.

We’ve already heard about Chevy’s new plan for allocations and it’s still something we’ll have to wait to see if by moving to an Average Daily Supply model will nudge dealers to stay with pricing the cars at MSRP. Not waiting around is GM’s North American President Steve Carlisle who fired this recent warning shot by telling dealers straight up that they risk having their vehicle allocation redirected to other dealers who aren’t being bad actors in the new car sales process.

Dear GM Dealership Team,

We are all very excited about recent GM news and product launches including the Chevrolet Corvette Z06, Chevrolet Silverado EV, GMC HUMMER EVs, GMC Sierra EV, and Cadillac LYRIQ. At the same time, we have both been working hard to meet customer demand in a time of constrained supply of inventory due to the global industry-wide semi-conductor shortage.

Unfortunately, it has come to our attention that in connection with some of these announcements and launches, a small number of Dealers have engaged in practices that do not support a positive sales experience for our customers. This puts our collective interests at risk and generates negative press that reflect poorly on GM’s brands and your dealerships. Specifically, it has come to our attention that some dealerships have attempted to demand money above and beyond the reservation amounts set in GM’s program rules and/or have requested customers to pay sums far in excess of MSRP in order to purchase or lease a vehicle.

First, I want to remind you that GM dealers are obligated to ethically and lawfully sell GM Products, as stated in Article 5 of the Dealer Sales and Service Agreement:

“Dealer agrees to effectively, ethically and lawfully sell and promote the purchase, lease and use of Products by consumers…”

“Dealer agrees to advertise and conduct promotional activities that are lawful and enhance the reputation of Dealer, General Motors and its Products. Dealer will not advertise or conduct promotional activities in a misleading or unethical manner, or that is harmful to the reputation of Dealer, General Motors, or its Products.”


Providing customers misinformation about additional sums being necessary for a customer to keep a reservation, is just one example of a tactic that reflects poorly on all of us.

Secondly, we have been advised that brokers are promoting new GM vehicle allocation. While the majority of GM Dealers do not support such behavior, a small number of Dealers still continue to work with brokers despite the following reminders that this is a direct breach of the GM DSSA: Bulletin #20-06 “Transactional Integrity and GM Export Policy” dated July 1, 2020, and Bulletin #21-17 “Sale for Resale or Export” dated November 22, 2021. As stated in Article 5 of the Dealer Sales and Service Agreement: “Dealer agrees that it will not sell new Motor Vehicles for resale” and “Dealer is not authorized . . . to . . . sell Motor Vehicles to persons or parties (or their agents) engaged in the business of reselling, brokering (including but not limited to buying services) or wholesaling of Motor Vehicles.”

GM will be forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity that customers expect from the Chevrolet, Buick, GMC, and Cadillac brands. For the small minority of bad actors that are engaging in the conduct identified above, this letter serves as notice that GM reserves the right to redirect your vehicle allocation or take other recourse prescribed by the Dealer Sales and Service Agreement.


If you have any questions or comments, please reach out to your Zone Manager.

Regards,

Steve Carlisle
President GM North America


For the record, this was a way better response to dealers than what we saw from Chevrolet’s Director of Car and Crossover Marketing, Tony Johnson who told us GM wasn’t too concerned about Corvette dealer markups a year ago. GM should rightly be concerned especially when the C8 Corvette is bringing in many customers who are buying from Chevrolet/GM for the first time ever. You only get one shot to make a good first impression!
visit this link https://www.corvetteblogg .. tments-on-z06/
+17   



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50 comments
 

 4 months ago '15        #2
The South 
Props total: 36536 36 K  Slaps total: 4625 4 K
Toyota Lot near me not even listing prices on tiger RAV4 Hybrids..

Figured I’d take a look just in case.. +$4500 on a lower end SUV is insane. That’s over 10% alone. Other dealership says prices are locked. Won’t show em without giving them all your contact.

What kind of buying experience is this? Already feel like they gonna try and fu*k me somehow someway, and that was before all this boolsh*t. But I guess people buying still.
+17   

 4 months ago '16        #3
ELAH MENTAT 
Props total: 26024 26 K  Slaps total: 2022 2 K
We can’t keep vehicles on the lot if we sell them at MSRP.

-10   

 4 months ago '20        #4
Ninjahood  topics gone triple plat - Number 1 spot x1
Props total: 9731 9 K  Slaps total: 1404 1 K
This is what pushes used car prices up as well...
+10   

 4 months ago '16        #5
Barbarianbob 
Props total: 2881 2 K  Slaps total: 257 257
Main reason I passed on the C8 and got a Porsche

I wonder how hard it’s gonna be to get one of these with everything going on?
+7   

 4 months ago '04        #6
xbossxplayax 
Props total: 25379 25 K  Slaps total: 4499 4 K
whoa @ the thought of paying premium for an american
+5   

 4 months ago '08        #7
HulkColegan 
Props total: 4486 4 K  Slaps total: 1077 1 K
Jeep tried that sh*t on me with the new Cherokee L. Did the Math and the numbers were close to BMW X7. Walked right over to Beemer and didn’t look back.
+33   

 4 months ago '18        #8
Obeybrad 
Props total: 698 698  Slaps total: 212 212
 xbossxplayax said
whoa @ the thought of paying premium for an american
Still best car bang for buck on the market
+1   

 4 months ago '19        #9
zzxxccvvbb 
Props total: 36302 36 K  Slaps total: 4531 4 K
Wish car dealerships were owned by the car company

Would be such a better experience

Dealership tried to fu*k with me once not expecting me to call Kia Canada on their a*s, and they begged me to come in so they could make it up toe whenever my car needed services.

Idiot service manager didn't know I hung out with the GM too, so he looked really bad for trying to overcharge me and do unscheduled work.

GM was like, "did you not notice he hasn't ever paid for an oil change......."
+11   

 4 months ago '16        #10
realdifferent 
Props total: 841 841  Slaps total: 76 76
I remeber when the C7 came out I pulled up in my 2012 BMW 650. Looking to get a test drive and see if it was a car I'd be interested in. Dealer told me they had to run my credit. I'm like bro u know the car i rolled up in here with costs more than the c7. It didn't matter.. I was okay bet I'm good. Haven't been back to a Chevy Dealer since. fu*k em. I'll spend my money with Porsche, Lamborghini, and Ferrari before they get a dollar from me.
+14   

 4 months ago '19        #11
zzxxccvvbb 
Props total: 36302 36 K  Slaps total: 4531 4 K
 realdifferent said
I remeber when the C7 came out I pulled up in my 2012 BMW 650. Looking to get a test drive and see if it was a car I'd be interested in. Dealer told me they had to run my credit. I'm like bro u know the car i rolled up in here with costs more than the c7. It didn't matter.. I was okay bet I'm good. Haven't been back to a Chevy Dealer since. fu*k em. I'll spend my money with Porsche, Lamborghini, and Ferrari before they get a dollar from me.
It's a sh*t test, so they know you might actually buy.

Good cars get toms of lookers

 4 months ago '18        #12
BrianPumper 
Props total: 376 376  Slaps total: 223 223
 zzxxccvvbb said
Wish car dealerships were owned by the car company

Would be such a better experience

Dealership tried to fu*k with me once not expecting me to call Kia Canada on their a*s, and they begged me to come in so they could make it up toe whenever my car needed services.

Idiot service manager didn't know I hung out with the GM too, so he looked really bad for trying to overcharge me and do unscheduled work.

GM was like, "did you not notice he hasn't ever paid for an oil change......."
gay black magic booty phag alert. u hang out with the gm too huh?
-4   

 4 months ago '11        #13
CALViiiN  topics gone triple plat - Number 1 spot x30
Props total: 75234 75 K  Slaps total: 8800 8 K
C7 > C8

+5   

 4 months ago '21        #14
Losantana16x4  topics gone triple plat - Number 1 spot x6
Props total: 7423 7 K  Slaps total: 976 976
 zzxxccvvbb said
It's a sh*t test, so they know you might actually buy.

Good cars get toms of lookers
Guess showing your credit score on a credit app won't suffice
-1   

 4 months ago '19        #15
zzxxccvvbb 
Props total: 36302 36 K  Slaps total: 4531 4 K
 Losantana16x4 said
Guess showing your credit score on a credit app won't suffice
If you were planning to buy the car you wouldn't care about them doing a credit check.
+2   

 4 months ago '04        #16
JayR04  topics gone triple plat - Number 1 spot x2 OP
Props total: 13669 13 K  Slaps total: 650 650
 realdifferent said
I remeber when the C7 came out I pulled up in my 2012 BMW 650. Looking to get a test drive and see if it was a car I'd be interested in. Dealer told me they had to run my credit. I'm like bro u know the car i rolled up in here with costs more than the c7. It didn't matter.. I was okay bet I'm good. Haven't been back to a Chevy Dealer since. fu*k em. I'll spend my money with Porsche, Lamborghini, and Ferrari before they get a dollar from me.
Same happened to me. Ended up buying from a different dealer. If they don't welcome my business, fuk em.
+4   

 4 months ago '19        #17
Owlsdoom 
Props total: 2837 2 K  Slaps total: 386 386
 ELAH MENTAT said
We can’t keep vehicles on the lot if we sell them at MSRP.

Damn must suck to be a dealer and know every single vehicle you get in is sold.

You sound stupid.
+1   

 4 months ago '15        #18
AmillionMo  topics gone triple plat - Number 1 spot x3
Props total: 33609 33 K  Slaps total: 9793 9 K
I'm trying to get the F150 Lightning. Dealer told me they were selling at MSRP but after the reservations closed, told me corporate decided to add $3k markup and told me it was fair to everyone. I was like, da fu*k are you talking about? U fu*king lied and act like that sh*t cool and fair? Smh
+4   

 4 months ago '18        #19
BlackjesuS  topics gone triple plat - Number 1 spot x1
Props total: 13346 13 K  Slaps total: 2639 2 K
 Owlsdoom said
Damn must suck to be a dealer and know every single vehicle you get in is sold.

You sound stupid.
Kinda a catch 22 ...cause if you come tomorrow and we don't have any inventory...I would think that word would travel and slow down potential sales
+2   

 4 months ago '04        #20
bigtrevdogg 
Props total: 4478 4 K  Slaps total: 711 711
My uncle died from the coronavirus cold....
-2   

 4 months ago '16        #21
ELAH MENTAT 
Props total: 26024 26 K  Slaps total: 2022 2 K
 Owlsdoom said
Damn must suck to be a dealer and know every single vehicle you get in is sold.

You sound stupid.
 BlackjesuS said
Kinda a catch 22 ...cause if you come tomorrow and we don't have any inventory...I would think that word would travel and slow down potential sales
Exactly…

We are the only ones with inventory and the top dealer in the district.

How can I sound stupid when customers were previously getting cars at or below MSRP before I started working there last year?

All of the features and benefits in my Honda’s come standard vs the completion.

The Civic is North American Car of the Year.

My previous 18’ EX-L Accord (10 Best for 30-something years) was getting 39.5 mpg combined in a non-hybrid while driving itself.

My profits are directly correlated to my product.

I can’t talk about other companies and their wares. I do know how and what to sell to my community.



Just sold a 2020 Blazer 2LT for 34+ with 8K miles. There are deals but you gotta look and find what is best for you. I help people do this daily while making profit for the dealership and for me.



 4 months ago '17        #22
lostkauze47 
Props total: 5770 5 K  Slaps total: 323 323
Mercedes tried to hit me with a 20k markup on a new GLS I'm like yeah bro don't want it that bad
+5   

 4 months ago '04        #23
nwking  topics gone triple plat - Number 1 spot x4
Props total: 28350 28 K  Slaps total: 3083 3 K
 realdifferent said
I remeber when the C7 came out I pulled up in my 2012 BMW 650. Looking to get a test drive and see if it was a car I'd be interested in. Dealer told me they had to run my credit. I'm like bro u know the car i rolled up in here with costs more than the c7. It didn't matter.. I was okay bet I'm good. Haven't been back to a Chevy Dealer since. fu*k em. I'll spend my money with Porsche, Lamborghini, and Ferrari before they get a dollar from me.
You are the third person over the years I have heard had a dealer tell them they need to run your credit to test drive. That is some BS I keep telling myself if that ever happens to me I'm reporting them ASAP.
+5   

 4 months ago '18        #24
Raymon 
Props total: 3754 3 K  Slaps total: 217 217
wast the new vette suppose to go for around 60k-70k and as soon there was a shortage dealers started charging 100k+
+3   

 4 months ago '09        #25
mboydii  topics gone triple plat - Number 1 spot x4
Props total: 9649 9 K  Slaps total: 660 660
 Ninjahood said
This is what pushes used car prices up as well...
No it isn't.
-1   



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