According to a new report, GM is actually losing a lot of money for every 2020 Corvette Stingray they sell below $80,000.
It’s not too uncommon for large carmakers to take a loss on certain specialty vehicles for their introduction. Preserving their customer base is priority number one, and large price fluctuations might cause them to bolt for greener pastures. Especially when those pastures (such as the Mustang and Challenger) are just a dealership away.
That’s what’s happened with GM for the new C8-gen Corvette. According to sources speaking with MotorTrend, GM is taking a loss on every Corvette sold that’s not their highest trim. Potentially a big loss.
The starting price on the C8 Stingray is $59,995, but if you buy it at that price, know that GM is giving a $20,000 discount on their production cost. MotorTrend’s source in GM said that the designers assumed a sale price of $79,995 in order for the car to be profitable, but the marketing execs said that it would be too big a price hike over the base C7 Corvette. Fearing mass abandonment from their customers, GM decided it was better to take the loss on the cheap C8s in hopes that most would opt for the pricier trims and packages.
A C8 3L1 with the Z71 package would top out at around $88,000.
This all means that 2020 might be the first and only year anyone will be able to get a mid-engine Corvette on the cheap. The source said to expect a price rise in 2021. "While we still don't know how much the C8's price will rise in 2021,” the publication wrote, “a more senior GM official tells us it would have to go through the roof in order to cover GM's cost."
Higher performance trims, such as the Z06 and the Z71, will be much pricier than the current base Stingray. We’re told to expect the Z06 to be between $80,000 and $100,000, while the Z71 will be well into the six figures. Don’t expect GM to be so charitable with either of those Corvettes.