An automotive industry analyst believes General Motors could make billions by spinning the Corvette nameplate off into its own sub-brand.
Morgan Stanley’s Adam Jonas claims a dedicated Corvette sub-brand could eventually generate sales of more than 100,000 vehicles annually and be worth $7 to $12 billion.
Jonas, a prominent auto industry analyst, envisions the theoretical Corvette sub-brand offering a variety of models, with the mid-engine C8 Corvette serving as the brand’s centerpiece. An electric Corvette SUV would eventually join the range as well, while a higher-end Corvette supercar with a price tag of over $150,000 could act as a halo product. These new models would attract new types of buyers to the brand, he believes.
“In essence, we think the Corvette brand is undervalued and under-appreciated by the market,” Jonas said.
Morgan Stanley believes the Corvette brand is already worth around $2 billion on its own – a significant valuation for what is currently only one single Chevrolet product.
With the introduction of the C8 Corvette, the topic of a Corvette SUV has been swirling in the media. GM CEO Mary Barra wouldn’t rule out such an offering when asked about it during the automaker’s Q3 earnings call, simply saying that she appreciates that analysts “think our Corvette franchise is very strong.” During the same call, Barra also said that GM will “look at a variety of things as we go forward and we recognize the strength of the Corvette brand.”
Autoblog approached GM for comment on the Morgan Stanley report, but as expected, it didn’t want to talk about future product plans.
“We appreciate everyone’s excitement about this iconic brand, but we will not engage in the speculation,” a spokesman the publication, essentially reiterating what Barra said earlier this year.
Other GM executives have not denied the possibility of a Corvette SUV, but also appeared to not want to talk about the matter. Chevrolet’s vice president for performance vehicles and motorsports, Jim Campbell, said he “can’t say anything one way or the other” when asked about the matter at the debut of the Corvette C8, while GM president Mark Reuss previously told reports that we are “probably not going to see that.”
Other sports-car brands are expanding their lineups in an attempt to win over new buyers, with Lamborghini introducing the Urus SUV last year and Ferrari also plotting its own utility vehicle for release in the near future.
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Source: Autoblog
Comments
Please stop. The names, Mustang, Corvette, Camaro, etc. are iconic for a reason and represent a certain type of vehicle. Watering their names down by making them “sub-brands” and slapping their names on vehicles that represent the complete OPPOSITE what what they have always been isn’t going to fool anyone.
Build a great EV CUV and give it its own name, something that will appeal to that buyer. The buyers for those types of vehicles will come and they don’t usually care about sports/pony cars AT ALL.
Ford naming their EV CUV “Mustang” won’t make anyone buy it that doesn’t already want that kind of vehicle, but it did just INFURIATE most of its Mustang owners and buyers. It’s not like they made an EV version of the current Mustang, they literally made a vehicle that represents the COMPLETE OPPOSITE of what a Mustang represents (an EV 4 door CUV for old women to commute in) and put the Mustang name on it..
What if it only took the Chevrolet name with corvette design language as an suv and wagon hatch like sedan with the LT2 engine
Ford is different in that it’s still a Ford Mustang. It’s a new model of Mustang but it’s still a Ford, not some ridiculous sub brand. So the Mustang heritage and legacy is still in tact and legitimate. If GM takes away the Corvette from Chevrolet, it will have ruined it’s heritage and legacy forever. If it’s a new style Model of the Chevrolet Corvette, then like Mustang, the Corvette’s legacy and heritage will remain in tact. It needs to remain a Chevrolet as it has been since day 1.
Indeed. Just expand product and leverage it with the the name. I’m cool with it still being in the Chevy family.
They will only benefit and possibly throw a few needed trophies in the, dust-collecting – GM trophy case.
It’s been a long time since GM was a leader. They had it, but lost it.
Maybe using the masterpiece that created the C8 and spreading the butter, generously and properly on the bread, will bring in more bread.
I recently bought a mustang even though I’m a Chevy fan as well. Love C-8 . Don’t screw with it. Same for Mustang Camaro Charger (was surprised 4 door charger) but all American icons. If it works why would you want something sub that takes away from a dream that has taken years to develop this far. I appreciate the fact that Chevy didn’t stuff hideous amount of hp to the C-8. Even though Z06 will have around 750 to 800 hp range. Learning how to drive the car is far more important than raw hp.
Point keep them the way they are. No subs !!!!!
A Pontiac real brand could be worth just as much.
I would start with 400 smaller dealerships selling 4 vehicles.
– A performance Crossover named Aztec. Would need to look better than the last Aztec
– A full sized pickup named Avalanche. Yea the last one was a Chevy, but the vehicle never had the volume to justify it being sold at Chevys 2000 dealerships.
– A low height Camaro based crossover named TransSport. I know the last TransSport is better left forgotten.
– and a Small electric 2 seat Roadster named Solstice.
As on “old guy”, the guy left behind with Chevy’s move to a mid-engine car, the guy left to die on the sidelines with tradition, the relic that millennial view anybody over 40 as, this is terrible.
BUT!
I’m not that guy and I think this would be a great idea! A high end high performance SUV, maybe a front engine traditional coupe for the “old guys”, I get the electric thing but that’s not for me but it would be for other buyers and that’s the key, a Corvette for everyone!!
A Corvette sub-brand could not exist with just two vehicles as they may need a sedan like the Impala using Volt architecture a 300 hp electric motor with a gas powered distance extender, a 500 hp electric CUV like the Buick Enspire concept car and possibly a second sports car like the C7 Corvette.
Don’t do to Corvette what Ford is doing to the Mustang!
Better yet how about GM builds an all new Sport SUV with a new original name and create a totally new model and classic vs just trying to ride on the Corvette coat tails with a product not good enough to to make it on its own.
Great vehicles define a name and create classic models while great names can’t save a crappy vehicle. It only fools, idiots and imbeciles. In the end they only risk great damage to a name that would be difficult to recover.
This is what the Vette needs to survive but of course the old boggies will cry “leave my retirement rocket alone”…
I believe the Mustang is also getting a 4-door gas sedan with a Lincoln version soon, Porsche, Lambo, etc is getting multi-products to fund the coupes, evolve or parish…
I get it, peeps. No one likes change just for change sake. No one likes to have heritage and history tarnished, just for profits sake. Things change…always.
I for one, would not be opposed to expanding the Corvette family. But only on one condition.
Give as much attention and dedication to whatever the spin-offs are, as you did in the development of the C8. Wonderful, class leading, affordable,
( BANG FOR THE BUCK CORVETTE Tradition) and there could be some astonishing products.
But, this is all a tricky proposition. As some have lamented, it could ruin the Corvette brand heritage. Or, it could grow the brand into something more.
Who knows?
Having bored you with all of that- I’m all for an expanded line branded under the Corvette moniker. But it needs to be done right.
The fact is you can build the astonishing product and let it stand upon its merit.
Adding the Corvette name to an SUV is just a sign they do not want to rely on building a great product and want to cover the lack of astonishment with a badge.
Let’s put it this way who here outside of the Corvette Team thinks GM will not screw up by putting the name on models that just do not live up to the image?
I’m assuming that was directed at me? If not, I apologize.
Look, I’m not sure GM can put out a NEW-NAMED product that stands on its own merit, no matter how wonderful it is. Leveraging the Corvette name ( Like I stated earlier) with the same dedication , attention to detail, and performance value- all under the umbrella of the Corvette moniker, might be the best products GM has ever produced. With brand heritage and recognition to only reinforce that proposition.
Remember, establishing an unknown, is more difficult than building upon a brand/ product with a fairly positive history. Look at Porsche, and Mercedes as two examples.
Yes, they are brands and not a one unit offering. But you must start somewhere. And GM could use all the help it can get.
BTW- I get what you’re saying. Case in point. Slapping and degrading the “SS” moniker, was disgraceful. I’m hoping GM has evolved from that pathetic period of history.
Who knows?
It makes more sense to give Cadillac electric performance SUVs and a high-end sports car IMO. Cadillac needs the brand image boost and sales more than corvette does. Putting ‘Corvette’ on it won’t add any more sales than ‘Cadillac’ would. If you design and develop a new car right you won’t need to rest on laurels, the car will build its own branding.
Why not do both?
Corvette offers its expanded heritage offerings in a supreme performance based package.
Cadillac, offers great performance with a big dose of luxury as icing on the top.
I believe there is room for both, and, GM needs all the great products they can proliferate. But, as I’ve been consistently laminating, THE PRODUCT NEEDS TO BE GIVEN THE DETAIL AND EFFORT that was put into the C8.
why in god’s name is this so difficult for people? Corvette is a CHEVROLET vehicle. Built by the GM corporation. Parent corporation…..sub-brands….vehicles. That’s how it works. Porsche doesn’t have a “911” crossover. Audi doesn’t have an “R8” utility van. And I find it hilarious that you run this article right after Ford cannibalizes the Mustang name. I think the reaction to that proves people don’t want cannibalized names.
Why don’t you suggest what you actually mean? What we all really want? A $65,000 luxury crossover that has a focus on performance….similar to corvette. Guess what, I guarantee they have one in the works and it will be an electric, probably a cadillac. GM isn’t stupid. Why put a bunch of resources into a dead end platform? At least they know the Corvette will sell. The current cadillac crossovers are placeholders, they know it, and we all know it.
Slapping the name of Corvette on some over-hyped performance SUV when we’re on the verge of an industry wide shift (and possibly recession) seems absolutely stupid, to me. Let Corvette be what it is, Chevrolet’s halo car.
I agree. 911 SUV?, 458/488/F8 SUV? Aventador SUV??? Corvette SUV?? Ain’t gonna happen.
Chevrolet already has SUV’s..
Chevy already is moving what Ford is doing with the mustang, sadly it the Camaro
You guys could be right?
Let’s see how it plays out before getting stuck in the, quick drying mental cement based upon emotions.?
So, funny.
Greatness is achieved by thinking for one’s self and forging forward against the cold winds.
Burrrrr❄️
I believe this would be a terrible idea. You have to have some belief in heritage. Would it sell? Probably.. but it would mostly be a gimmick and go the way of Saturn 15-20 years down the road.
They have already talked about bringing back the Hummer name for electric vehicles, which is more than fine. The name is somewhat fitting anyways.
Ford is good at marketing, and has of recently been keeping their vehicles fresh, up to date, and giving their LOYAL customers what they want, and at the same time appealing to unbiased customers looking for the best bang for their buck. The Mustang “brand” could very well survive.
GM on the other hand, has terrible marketing, their newly released vehicles are out of date, and they are so focused on swaying new buyers that they are losing the once loyal buyers. Buicks aren’t the reliable floaty cruisers they once were. Chevys all look like the Camaro(the same one that got a lot of backlash for its styling). Cadillac and GMC are over priced, and under equipped compared to direct competitors.
All in all, the Corvette is GMs only vehicle that stands out, and impresses year, after year. All that is expected of the Vette, is that its fast, fun, and fairly affordable. If it becomes a brand, it will face more competition, thus making it a mainstream vehicle, and dying off.
Yep,
I agree with those who say a Corvette is just what it is !!
If GM put that much effort into building X then X would not need to be called a Corvette.
GM made the Corvette what it is, Cadillac once to was this great !!
GM don’t make another crap vehicle and ruin the Corvette name like you did with the Cadillac line !!
GM I got a good idea and you don’t have to pay me Morgan Stanley fees, Just make a vehicle as good as the new C8 and call it whatever you want, bet it will be a hit !!
Try this, a midsized ANYTHING with more than ” Good Enough ” anything.
I will be standing in line to buy !!!
Anything midsized, with better than ” Good Enough ” power !!!
Anything midsized, with better than ” Good Enough ” interior !!!
Anything midsized, with better than ” Good Enough ” options, colors, materials, tech, safety.
ANYTHING !!!
If it is as good as the C8 is, It will NOT need to be called a Corvette !!!!!
What can’t you – GM – figure out ? You – GM with this Corvette, have a 600 whatever HP AWD/RWD two seater vehicle, yet if you want the same sized SUV, and you- GM offer just average GM blah ” Good Enough ” to haul 8 people !!!
WHY, WHY, just not something just a little better ??
Not 600 HP just ONE midsized SUV with ANYTHING better than the 3.6 V6 or a 2.0T.
ANYTHING, Call it whatever you want, I don’t care if you call it a Corvette if you want, I would NOT, but at this point if you-GM need to call it a Corvette, FINE, do it then, just make something, anything, midsized with more !!!
Get it yet !!!!
As a proud C5 owner I think it is stupid to try to follow the Ford mustang down the road much less add to the brand with such hype as the mustang did! Leave great things alone(Corvette) and sell that s@#$ somewhere else in the fleet!!! Corvettes have been great since 1953 and don’t need to add extensions to gain popularity or market..
This is a terrible idea. This idea I made from a money person not a car person. Ford is currently making this mistake with the mustang Mach E. It will make money but at what cost. Greedy people. It would devalue the real Corvette.
Take a hint from Ford’s (in my opinion) botched release of the new electric Mustang Mach E SUV… I haven’t come across anyone who’s liked it… and I believe the reason why is Ford is calling it a “Mustang” and it looks nothing like a Mustang. They should have called it something like the Stallion E (by Mustang) and I believe it would have been better received by the public.
As a Corvette owner I have no problem with GM changing the Corvette name into a brand as long as the let Taj design the SUV and don’t just slap the Corvette name on an existing SUV with new body panels. I do think they should just rename the 2 seater sports car the Stingray.
A camero v8 SUV is the answer dont ruin the Corvette
I don’t think it would hurt the Corvette. I think it would help. It would give GM the opportunity to attract Porsche Cayenne customers. The Corvette has been compared to the 911 for years. If GM had a brand that represented performance I believe it would succeed. The Camaro just doesn’t fill that same demographic.
I own a camaro and I love it but the name camaro doesn’t have prestige like corvette. I’d rather let them kill off camaro if sales are low. I’d also like to see a four door chevelle as a charger competitor
Corvette owners care about the car, the history, the exclusivity… NOT the existence of a sub-brand with bastardized vehicles using the name. Keep the Corvette heritage as it is!!!
What people don’t understand is that a Corvette is still a Chevrolet, and what people really don’t understand is that most all Chevrolet cars are built just as well as the corvette. Yes Corvette has a special focus on performance. That’s fine. Chevrolet Silverado has a special focus on hauling and towing. Equinox has a special focus on family utility, etc. They’re all GM vehicles.
I think whats really going on here, with all these calls to “spin off” the Corvette brand, are the super wealthy would like the Corvette to become more limited and expensive. The idea of a “supercar for the people” really bugs some people, I guess. Of course, they’ll defend themselves by saying “No no, we just want a few more vehicles that are as focused on performance as Corvette, but keep the prices down just like any other Chevrolet.” Yea right. I think thats BS you just want to spin it off and take it “up market” so those pesky blue collar folks can’t ruin your upper class image.
Dear Chevrolet,
Wanna make a big BIG hit with the consumer? Here’s the secret… you already have the car, put an engine that competes and BEATS the Nissan Altima in mileage!!! Did you know you can get 25+ mph in the city easy, and 40 on the highway in one of those? Why can’t Chevy make a car with that kind of mileage or better? Not just on the window sticker, but in REAL LIFE DRIVING. I can fill up in Lakeland Florida, and drive on I-4 to St Petersburg when there’s no traffic to hinder me, set the cruise control on 75 and when I get across the bridge in St Pete I’m showing 40 mph. I could not believe it!! It’s the same size car as my daughters Malibu LTZ, but she only dreams of mileage like that, when she drives Lakeland to Gainsville. Put yer thinking caps on and make it happen guys and gals. You got the know how, you got the desire, what you don’t have is the engine to do it. And by the way, I have to open the hood and PROVE it only has a 4 cylinder engine. Everyone thinks it’s at least a 6. If you have to…… do what the Chinese do, Buy one and copy the engine!
What is a Corvette? It is a 2 seat sports car model built by Chevrolet.
What is a Porsche? It is a Brand that makes a number of different model vehicles.
Two different ball games.
No. The Corvette is a Chevrolet just like Camaro and is the former Chevelle. The Corvette was and up to C7 is a front engine two seat sports car. Which is what is it’s supposed to be, so far. A sports car with muscle car engine/performance; with a mainstream badge for the more successful masses. Chevrolet’s top performance car. Stop trying to make the Chevy Corvette what it is not. As for Porsche, the SUV has it’s own name, not 911 SUV. 911 is still a model under Porsche, not a spin off make. GM wants a performance/luxury SUV? No problem, Cadillac badge with performance features. Luxury/performance car or halo car? Same Cadillac; rebooted XLR, Zora or whatever.
Try to stay with the winning formula GM. Camaro a muscle/pony car and Corvette a sports car for Chevrolet.
I have been stating that a Corvette Sub Brand would print money for GM.
I think they should follow exactly what Porsche has done.
Panamera Four Door Coupe
Macan size CUV
Cheyenne size CUV
Boxster size Roadster that they can split with Cadillac which is in desperate need of a Roadster
BINGO!
This conversation would not have even been considered before the amazing C8 reveal.
Hopefully, the attention to detail and quality, will translate into real- world experiences and, the production vehicles.
If so, print the money under the Corvette umbrella/name, and it will rain more money.
I’m not sure why everyone is up on arms about this strategy, other than the fact- change is a hard pill to swallow.
But, where’s the harm? If they make an SUV, sedan (?), and a smaller light-weight more affordable car, It’s not like the Corvette C8, and the more performance variants will be discontinued just because they expand positive potential.
Why are people complaining, when they can get the C8, and more good products covering multiple offerings?
Win-win!
But, redundant me, wants to make sure everyone knows it needs to be done top-notch.
If GM wants to operate a “separate” company with the resources to compete with world best, why not. It would still be owned by GM. It could then develop other vehicles, that could attract new investment & talent, that it could not under the autonomy & restricted management of parent GM. That will appeal to new buyers and provide a “new” paradigm shift for “Corvette” the company.
BINGO!
What the crap is going on in here?? Are you people hearing yourselves? The Corvette is a brand already because it defines the formula for a high performance car. It was challenging enough when Chevy made it mid engined but you can justify that ingredients remain the same but slightly change the recipe to accommodate a little extra pep and a little extra baking time. but we are still making cakes. You start throwing in SUVs and electric vehicles or Corvette station wagons and now you’re making cake flavored hamburgers and peach flavored lasagna. Let’s settle down folks one breath at a time please
Less than a year ago, many experts looking at Corvette sales had basically written off the C8.
Experts indeed. Now this rubbish. First, Chevy dealers have happy Corvette owners. They deserve this product in their showrooms. They have already invested in the training and tools. Second, do not mess with success.
I get that people are reluctant to take the Corvette name and make it into a sub brand but if it infuses extra money into GM and the cars are going to be built in the US then I am all for it. I would rather gain a brand rather than losing a brand like we did with Pontiac and Oldsmobile. I think it would be OK if the sports car was sold as a Stingray. For those that are against this would you also be against Sub branding the name Stingray instead and leaving the Corvette the Corvette?
Please no, the Mustang Mach e is an abomination.