In a recent interview, GM North America President Mark Reuss was asked why the automaker isn’t allocating 2014 Corvette C7 Stingrays to dealers who have actual sold orders from customers in their area of responsibility, bringing up the topic of initial C7 allocation that has resulted in contention among certain Chevrolet dealers and Corvette enthusiasts.
Here’s what Mr. Reuss had to say about GM’s decision to limit the launch of the 2014 C7 Stingray to certain dealers (context, in brackets, ours):
“We can only make a certain amount of cars in a certain amount of time, so the first allocations are based on where we have the biggest density of Corvette [buyers]. I don’t think selling four Corvettes in the prior year is a tall order, because we’re not gonna take away customers from dealerships that have really performed in Corvette markets.
That’s the tradeoff here: we’d like to make more cars faster earlier but have to launch this with high quality and that’s our launch cadence and it’s a very good one. We ramp up quick, and I don’t think that’s unfair at all, so… sell four Corvettes and you’re gonna get great allocation.”
The GM Authority Take
There seems to be little question that The General’s launch strategy for the C7 will have some negative impact on some dealerships and some C7 buyers. Conversely, the plan also has the potential to impact other stores and C7 customers positively — making it a traditional trade-off scenario.
It is, however, worth nothing that the strategy to limit C7 allocation is temporary and will only be in place for the launch period during which preliminary inventory is highly constrained… that said, GM has yet to provide a timeframe for when all Chevrolet dealers will be able to sell the new Stingray.
But the proposed strategy of providing allocation to those dealers that have sold C7 orders doesn’t sound like a bad one, either…