This article is part of the GM Authority Mailbag series, where the GM Authority Crew features and replies to your questions, comments, and observations.
The following came to us from Bob O. in Canada:
If GM would give Canada more Corvettes maybe the sales wouldn’t have declined in November. It is a joke.
There are cars all over the US Dealers’ lots and as a Chevy dealer in Canada I get one a year if I am lucky!
Bob,
Chevrolet sales grew 9 percent during November in Canada, and Corvette sales grew 16 percent to 63 units. But we feel your pain. Perhaps Chevy could’ve sold some more Vettes during the month, had dealers like yourself had more to sell.
Perhaps the more appropriate topic would be GM’s “sell and earn” allocation model, and whether or not it actually works to the advantage of the customer. Although not the case for all models, the system works something like this: a dealer must first “sell” a unit of a particular vehicle model in order to “earn” the ability to order another unit of the same model from GM for its inventory, which it sells to a customer, and so forth. This is called “allocation”, in the GM dealer world.
On its surface, the allocation model seems fair, but it’s also somewhat of a self-fulfilling prophecy for dealers who have a customer ready to buy a certain model, but can’t get their hands on a unit that they can sell to a customer, hence forcing the customer to go to another dealership to buy the vehicle. The original dealership loses twice: first, in losing a sale and, second, in not earning the right (allocation) to order the model from GM for future buyers.
But in the case of the Corvette, that allocation model goes out the window. Instead, only dealers who have sold a Corvette in 2013 can order the C7. And if you didn’t, tough luck.
So what’s a dealer like yourself to do? Any dealers in the crowd, feel free to sound off in the comments.
Comments
They allocate/ give preference of Vettes to dealers that have a history of moving them. If his dealership only gets a few a year it’s because they haven’t moved many in the past, I’m sure if they sacked up and ordered a couple it wouldn’t be such an ordeal either. Both the Chevy dealer and Caddy dealer near me maintain the same Vette (and/or ZL1) and CTS-V on the showroom floor all year as display and test cars. Customers then place an order for their own car.
If I showed up at a dealership wanting a C7 and they didn’t have a showroom one sitting there for me to sit in and take out, I’d just drive to the next Chevy dealership 20km away where there is one. Could be what is happening here. The dealership needs to buy a showroom model for the year and sell it off once it has served it’s purpose and replaced with the next year’s model.
As a Canadian, I use an unscientific rule of thumb when considering US auto sales numbers in comparison to our own: given that we have roughly a tenth of the population of the US, we have roughly a tenth of the number of new car buyers every month, and roughly a tenth of the volume per car sold. For example, if 3000 ATS’s were sold in the US, we should expect roughly 300 ATS’s sold here over the same month.
As for Bob O., being a lowly dealer and mere obstruction between the consumer and their car, the single nugget of advice I can give is this:
Suck it up. The volume and the demand here will NEVER be as strong as it is in the US. You’re trying to rush and sell a halo product when you’ve never sold such a product in however many years your piddling dealership has ever existed. The last thing GM needs to you rushing to the printers this time next year to print off ten thousand flimsy flyers to mail off to whatever 70 year on your sales list you think would be an easy sell; a consumer who’s demographic the Corvette isn’t interested in, and who through your efforts of adverting reach are indicative of such.
And don’t worry your little bald head about the customer getting worried about not having a C7 in your showroom. The car is that damn good as its accolades show. Iif you can’t be bothered to earn the right to have one in your wood-paneled showroom, the consumer would have little problem in finding a dealer with a C7 who worked harder than you.
Maybe you can be the top Silverado accessory seller! Think of all the needless markup those dealer installed hood protectors, vent-visors, vinyl appliques, and back racks can get you! I hear Silverado sales are brisk up here, almost an eleventh of what the US has! Better get crackin’!
It’s not a torch red C7 in the showroom, but it’ll have to do…until you learn better.
I disagree somewhat with that statement. In cities like Vancouver, Calgary, Edmonton, or Toronto a dealer will likely see the same number of customers as a city of that size in the United States. Overall less population but density in major cities is matched with some American cities.
If we could get our hands on a handful of C7 Corvette’s and even the SS I can guarantee they would sell. I can easily lay part blame to GM’s allocation system.
I am really tired of the remarks and the way people think that only old codgers buy corvetts. It is not because we are old, we old codgers just know a good car when we see one. JUST THINK SOMEDAY you will be OLD TOO so get off the old codger kick that vettes are just for the old at heart and enjoy life while you can and DO IT IN A CORVETTE.
REPENT FOR THE KINGDOM OF HEAVEN IS NEAR. AMEN
Iam sorry to say that most of the old codgers aka baby boomers are getting inheritance money along with working hard and saving hard and now buying things they want instead of things they need its good management and pay off time
As a Chevrolet fan and not liking previous Corvettes,the C7 looks awesome.I saved my money,waited for the Z06 and now I can’t buy one.Too few allocations to Canada and a long list of buyers wanting them.With 100k burning a hole in my pocket and GM not wanting it,dealers with Vipers in stock will most likely get it.
No you won’t, you’re a Chevy guy. Just hold your horses. Corvette wouldn’t be a feasible vehicle if they made 100k units the first year and then 10k units the second. Let the seasons take their course and they’ll be one waiting for you at the crack of spring.
One of the problems with Canada is that it is already winter. I would expect current Corvette output is destined for warmer climates, such as: California, Arizona, Texas, Florida, and Mexico.
I missed the 2014 as no product…then I tried early for the 2015….they have my money down and no idea when the unit will arrive….GM is pissing me off…send a unit to me soon so the bad taste doesn’t ruin the event for me when it comes!
The allocation (US & Canada) process is different than it is for Equinox, Silverado’s, etc… For several reasons. First, the C7 is here today due to the less than 10% of all North America dealers who, stocked and sold the C4, C5, C6… Especially in the days/years when nobody wanted them. In those times, any dealer could order 1 or 12 of them and GM could send them —- but did anyone do that? No. Only those 10% who nurtured the Corvette business and loyalists did and those are who have EARNED the right for C7 allocation. Simply put, C7 allocation is based off of a dealers sales. Sure anyone with a dog and note in his mouth can sell a C7 and likely no dog needed to sell a Z06… But do you want to spend $100k at a Chevy dealer who hasnt sold a Corvette in two years or do you, the consumer deserve to spend those funds where the specialists are. If yiur a dealer you should have gotten in the Corvette business years ago, if your a consumer of such a fine automobile akin to a Porsche, Ferrari, you have earned a sales and delivery process that matches the price being paid – versus that akin to an Equinox.
As for ordering one – go to anyone of the aforementioned dealers for a 911turbo, or GT3 – youll also find yourself on a waiting list – because any product built in the $100k price range and languishing on dealer lots is no longer in demand – I think Viper woukd be a great example of this – where it becomes the deal that sells versus the merit if its perfomance.
I’m at the number 1 dealer in the province and still no luck getting one even though some dealers in the US have them sitting on the lot with no buyers!? Ship me one already!!
Can’t get new US-spec cars in Canada, at least not with proper papers that can be traced back to the factory.
There is a way to get US-spec cars here, but I don’t want to reveal how it’s done.
You’re soooo smart!
GM sales have fallen behind Kia/Hyundai in Canada and K/H don’t even have any trucks. GM better start paying more attention to Canada if it wants to be a serious player.
A Mercedes Benz head office executive told me they sell more AMG cars in the Toronto area than in the entire state of California. So the money and the market for high end cars is there. New Cadillacs and Vettes are barely present.
Time to pick-up your sox GM! Tired of the German boys eating your lunch yet?
Chevrolet needs to step up to GM. Send their Corvette’s anyway.
when can we have a corvette and Camaro in RHD for our NZ market
Hi;
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Is this true?????
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