C7 Ever Declining Sales

[John]

There were 1,382 Corvettes sales in October, 2018, roughly the same as last October, but total new Corvettes sales this year for the first ten months, were 16,263 compared to 20,236 last year, a 20% decline from one year ago.*

If sales this November and December were to continue as the same rate October sales, which is highly debate-able due to winter setting in in many parts of the country, there would be a total of 19,027 new Corvette sales this year. More than likely however due to weather, there would be a further decline in sales the next two \months, so perhaps around 18,250 total C7 sales this entire year.

A couple of notes:

1) When comparable annual sales projections were done just two months ago, it was projected that annual 2018 Corvette sales would be approximately 20,500 units this entire year.

2)* These October 2018 sales numbers appeared in GM Inside Line, but were/are not officially and separately confirmed by General Motors. As they are detailed for every model within GM’s lineup at the link, it does not look like they were arbitrarily just made up. However, since GM sales numbers are no longer being publicly shared except at the end of each quarter, my guess is these number were “bootlegged” from within GM.

https://www.gminsidenews.com/forums/...-sales-290495/

3) Compare this 2018 projected 18,250 total C7 sales with actual 25,029 new Corvette sales just last year. (Source=General Motors as reported in CorvetteBlogger). This further compares to 29,995 new Corvette sales for 2016 (again thanks to our friends at CorvetteBlogger).

http://www.corvetteblogger.com/2018/...orvette-sales/

For those who are thinking that such progressive, sharp, annual C7 sales declines point to a reduced percentage chance that C7 FE sales would continue next year, these numbers support your thesis.

Tags: stingray

[WoW Factor]

On a side note according to GM Inside both Silverado and Camaro sales were down. Could this mean more aggressive pricing for the C8? Or, could this cause the C8's price to be higher?

[MidEngine]

From roughly 30,000 units annually just two calendar years ago , to around 18,000 units this year. That is an amazing drop.

[Racer86]

On a side note according to GM Inside both Silverado and Camaro sales were down. Could this mean more aggressive pricing for the C8? Or, could this cause the C8's price to be higher?

Or maybe, no C8 me in 2020? Just food for thought!

[John]

Let’s put GM’s net profit this quarter into persecptive, e.g., $2,500,000,000. What Mary Barra is doing is what no other GM CEO before has done, is to not just make great decisions for now based on current information, sales and costs, but to prepare for future downturns. That is her brilliance. She will keep GM strong even if the long projected 2019 recession comes, and even if SAAR drop back to $14M units annually.

al Motors said Wednesday it sold fewer vehicles during the third quarter — but at higher prices — helping the Detroit automaker deliver a better-than-expected earnings report that sent its shares soaring.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $1.87, adjusted, vs. $1.25 expected

• Revenue: $35.79 billion vs. $34.85 billion expected

The carmaker's shares jumped by 6.3 percent in morning trading. During the premarket, it had gained 10 percent.

GM swung to a profit during the quarter from last year's loss, which stemmed from the company's sale of its European business to Groupe PSA. GM's net income was $2.5 billion, or $1.75 a share, compared with a loss of $2.98 billion, or $2.03 a share, a year ago. It generated $35.79 billion in revenue, up 6 percent from $33.62 billion during the same quarter last year. Analysts had expected the company to generate $34.85 billion during the third quarter.

"Our disciplined approach to the U.S. market, combined with strength in China and further growth of GM Financial, drove a very strong quarter," said GM CFO Dhivya Suryadevara. "We will continue to take actions to mitigate headwinds including foreign currency volatility and commodity costs."


Here's what's driving the growth in GM's North America sales: Analyst 2:54 PM ET Wed, 31 Oct 2018 | 03:37
Suryadevara said on a conference call that GM expects fourth quarter performance to be strong, with solid sales of highly profitable crew-cab trucks.

The company said it sold fewer cars but was able to raise its prices in the U.S. by an average of about $800 per vehicle to more than $36,000, setting a record for transaction prices and about $4,000 over the industry average. It also said Cadillac sales in China broke a record, up 4 percent over the previous year and 20 percent year to date.

GM's third-quarter vehicle sales volume dropped by 14.7 percent from the previous year, the company said. Sales fell across every region and every brand, with Cadillac seeing the smallest decline in sales among its marquee brands, 3.9 percent, from the previous year.

Sales of several Chevrolet and GMC truck models, including the Silverado LTZ and High Country and the GMC Sierra SLT, Denali and its new off-road AT4 crewcab models exceeded expectations, GM said. The automaker expects to ship about 120,000 of the new trucks in the second half of 2018.

The strength of GM's truck and SUV business in North America is further evidence of how important that market is to all three major U.S. automakers, who have been less successful abroad.

https://www.cnbc.com/2018/10/31/gene...s-q3-2018.html

In short, GM is doing extremely well, but C7 sales are sliding fast.

[meyerweb]

Or maybe, no C8 me in 2020? Just food for thought!

C7 sales are falling because it an "old" design. E.g., no significant visual updates since each model was introduced. And even the GS isn't really distinguishable from the Z06. If I already have a C7 (and probably a low mileage car, at that), what's my incentive to buy a new C7? People who were going to trade up from a Stingray to a Z06 did so long ago, and I suspect there haven't been a lot of Stingray to GS trades. If GM had refreshed the styling of the C7, and perhaps boosted HP to 500 in the Stingray and GS, it might be selling in better numbers today.

But the C8 will be all new. Lots of reasons for C7 buyers to trade up, and will probably draw at least some new owners into the Corvette family. I don't think GM is likely to cancel the C8 now.

[Boomer]

From roughly 30,000 units annually just two calendar years ago , to around 18,000 units this year. That is an amazing drop.

40,689 in 2016!

I bet now would be one of the best times ever to buy a new Corvette. This outstanding car has gotta now be one of the best values ever. Love my 2014 C7!

[John]

C7 sales are falling because iit is an old design. If GM had refreshed the styling of the C7, and perhaps boosted HP to 500 in the Stingray and GS, it might be selling in better numbers today.

Thanks meyerweb, for my special post of the day award. [xXColorShiftXx gets our special thread of the day award for the C8 Secret Key Fob thread.]

You comment echoes what member “Stevera2” has been saying since mid way through the 2017 model year, that “we need 500 HP, a new front and rear fascia, and one striking change to its interior, which would goose C7 sales tremendously.” He is a person who owns two C7’s and would have bought his third if that had happened. In fact, he took his SO on a special, and from where he lives, extensive trip to the BASH to see what was new for 2018 — and was ready to buy, but nothing excited him then, and in spite of his probably taking about 20 trips to dealerships since, still looking at C7’s with an idea to buy, he went home every time happy to his 2015 Stingray and his 2016 Z06, for as he said to me, “ why would I spend tens of thousands of dollars to get more of what I already have.”

[Boomer]

I don't know. "Old" is in the eye of the beholder. While it is virtually unchanged since 2014, the beauty, performance, attention and accolades never get old. These cars are not a dime a dozen on the road and stand out significantly.

Most likely, once I get my 2020 C8, I won't get another C8. Repeat yearly buyers gotta be a minority even with some changes to the car. The larger "base" buyers probably have more to do with continuing sales during a generation.

[George]

By any stretch of the imagination, the C7 has been a booming success story, however, with the numbers sold to date, I'm actually surprised that sales aren't flatter than they are. I'm reminded of the end of the C6 run, when sales tailed off badly, and the wonderful 427 convertible was being discounted in dealer showrooms by 30% or more!

Given that it's doubtful GM has managed to lower the age demographic very much for Corvette buyers, one wonders how much more gas is in the tank for the C7 sales? They've surely saturated the market at this point.

Current GM management seems to be very aware of the rapidly changing auto markets...arguably the most dramatic in auto history, as they deal with technology, autonomy, AI, young generations that don't care about cars, etc. So, I have no idea what they've decided to do with Corvette, but I hope there is at least a little bit of life left in the kind of cars that most of us know and love. I doubt that they're expecting huge sales for a ME, so to me it makes sense to include a nicely updated C7, but who knows?

If I were in their shoes, I'd have the Corvette team working on a really cool SUV as well as the new C8. It will be fun to see what they come up with.

[patentcad]

From roughly 30,000 units annually just two calendar years ago , to around 18,000 units this year. That is an amazing drop.

Same as it ever was for Corvettes for every generation, as even a cursory review of historical sales figures will immediately tell you. So don't panic.

I'll tell you when you can panic.

Carry on.

[Boomer]

Same as it ever was for Corvettes for every generation, as even a cursory review of historical sales figures will immediately tell you.

These historical sales figures?



https://www.corvsport.com/corvette-sales-volume-year/

[John]

Thanks to Boomer, found this and it shows strong C5 sales were the entire generation with no fall off. The C6 was a highly predictable fall off at the end due to the Great Recession.

The C5 saw some changes toward the end. I wish the C7 had had some changes for 2018 and 2019 (other than the ZR1 which was out of many of our financial comfort zones.

[Balataguy]

I believe sales have declined with the anticipation of the C8 arrival next year. Why trade in or sell my present car until I know if I want a 2019 leftover for a great deal, or 2018 for similar, or wait and get the newest and greatest, C8 Mid Engine CORVETTE. I'll wait till I see the beef!

[John]

I sure understand and respect your plan! Hope you are faced with a dilemma of having two options you love and two you can afford.