ME’s Entry Price???

[John]

What do you think the ME’s entry price will be? If you are basing your prediction on whether there will be C7’s produced at least the next two years, please include that in your post.

[Bikerjulio]

I read the earlier piece you wrote about buying a C8 and the production limitations at BGA. What was it? 30,000 cars pa?

My question would be, if they can sell all those 30,000 as ME cars, and make more unit profit than on a FE, why would they bother making any more FE's? GM isn't in the charity business of catering to the FE zealots. I know there are contributors who are convinced they will run both types, and I'm not saying they couldn't. But why?

I'm in the "value for money" mass market camp, and like the pundit who forecast that the base would be $5000 over the current base. And that there will be overwhelming demand for the new ME if it's priced right.

[John]

The Plant’s annual current capacity, at “firewall overtime” (Kai Spande’s term), is 33,000 units per year.

Good questions you raised. Here’s what I am thinking/knowing. The ZR1 was always designed to be at least a two year program (amortizing engineering in-office development, actual testing costs, tooling costs, etc.). Since it was introduced late, and my belief that the contracts with its parts’ were for two years production, and with its nice profit margin, there will be a 2020 ZR1, maybe also a 2022 product.

Second, I think that even if the demand for the ME if overwhelming, say 40,000 folks waving money in hand, saying please make me one, GM understands that massive first and even second year demand has historically dwindled down the road the last two generations. Having an entry level $56,670 FE, especially since it will be the only one with a manual trans, softtop convertible and two-golf bag capacity, says to me that there is a high likelihood that GM will reserve slots for at least an additional 5,000 FE’s the next couple of years (in addition to the 2,300 ZR1’s we also shall definitely see). And again, maybe supplier contracts carry forward require a minimum number of FE sales for at least the next year or two?

As to your excellent profit question (for as we all know the higher the selling price, the higher the profit 98% of the time), might GM, choose to offer the ZR1, yet not all of the other C7 models next year? I have heard repeat rumors that this is being considered, but can not get a definitive answer as to what the final decision was, e.g., whether to keep all or some C7 models and if the latter, which exactones — though perhaps that is because GM has not 100% made those exact “final answer” decisions yet.

[John]

I think we will hear Harlan or Tadge say at its reveal, “we have not yet set the actual MSRP for the car, but if you could afford a moderately equipped GS, you will be able to afford an entry ME.” (A moderately equipped GS = around $75K.)

[Bikerjulio]

My observation by keeping watch on my dealer's inventory of C7's, is that they are not selling despite some hefty discounts. I'm seeing zero sales in the past few weeks. I could pick up a C7 GS in the low $80's CDN, equivalent to the low $60's USD. Maybe they will continue the ZR1 for a while if the demand is there, but not any other FE's.

Obviously there will be development and engineering costs that GM would want to recoup. The optimist in says that a portion of those costs were incurred prior to the crisis of 2008-9, and have long been written off. As far as manufacturing costs, I see no inherent reason why the ME should be any more than the current car.

So, I'm guessing a base of $65k with my nice convertible at $75k slotting nicely under $100k CDN.

[91ZR1]

Guys, I’m going to disagree a bit ... or maybe a lot.

John, I appreciate your devotion to Corvette and the excellent amount of information you provide and all the effort involved in all of this, including the establishment of this new site. I also totally believe you when you repeat what the plant manager told you regarding total capacity. However there are ways to make statements and not tell the whole story.

I don’t believe that the multi million dollar investment and expansion at the plant were done to limit future production and capacity.

I have owned several mid engine cars and appreciate the dynamics etc, but they are not nearly as practical. Many Corvette owners enjoy long trips with their significant others and their luggage (and in my case her 40 lbs of natural beauty) not to mention the golfers with the prerequisite two golf bags. I don’t think this great 65 year history will end with the C7.

IMHO, there will be a new FME to replace the current platform in a couple of years. The RME will be a “supercar” for those that want it and are willing to pay for it. In typical Corvette fashion it will be a great value vs the competition, but I think you won’t be able to buy it for much under $100,000 to start, with latter iterations going well above that.

Disclaimer: I’ve been wrong once or twice.

John. ??

[Bikerjulio]

I'm struggling to understand this

Many Corvette owners enjoy long trips with their significant others (and in my case her 40 lbs of natural beauty)

Even if she's a small woman (and I'm assuming that"s what we are talking about here), say 100 lbs total, then she's 60% unnatural? That would be lot.

[91ZR1]

It was meant as a joke about extraneous luggage requirements... get it? ?

[Ateupjoe]

Yep I read luggage in that 40lbs statement.

[John]

A thread about the ME’s potential luggage space is here:

https://www.midenginecorvetteforum.c...rying-capacity

And after our little side trip, thank you for returning to your thoughts please about the ME’s entry price!

[4U2ENV]

I'm thinking it's going to start around $70,000 for base

[Brian Kissel]

I could be all wet, but I really don't think the ME, is going to start at less than $100,000.00. I expect the rumored 1000hp version to be heading closer to $180,000.00. As long as this thing isn't butt ugly, I'll be holding out for the HP version. BUT, I've been wrong before.

Regards, Brian

[4U2ENV]

I think your wrong, if it was $100K only certain people would buy and I'm in the wrong forum, I might just buy a Volt or Bolt and save on gas

[FrankLP]

I'm thinking it's going to start around $70,000 for base

Yep... this is what I was thinking as well... give or take $5K.

[Mobius]

My thought as well - starting around $70K MSRP for the coupe.

[John]

I could be all wet, but I really don't think the ME, is going to start at less than $100,000.00. I expect the rumored 1000hp version to be heading closer to $180,000.00. As long as this thing isn't butt ugly, I'll be holding out for the HP version. BUT, I've been wrong before.

Regards, Brian

Brian, I think you are very close for the rumored 1,000 HP, AWD version being around $180K. I believe however, the entry version is going to be in the ballpark of $75K to start, To me, additional questions are whether there will be one or two power-level versions between the 2020 entry model and the third or fourth year BEAST; and second, what will be the price points for the middle versions. I hope there is a 600+ version starting a fraction below $100K, and an around 750 HP version in the neighborhood of $140K, e.g., more choices with varied price points depending on everyone’s budget and “needs.”

Also thinking of such other variables including coupe vs. HT convertible, regular vs. wide body, and who know what else we could get to select from.

Bring them all on GM, for we need lots and lots of ME options.

[John]

Video of one person’s thinking that the entry price of the ME will be under $70,000.

[redc8z06]

The price has to be under $100K GM is in the volume market of selling cars. The ME R&D cost could be high depending on how much of the C7 was reused if any. Which means volumes of cars need to be sold which won't happen if this thing sells above $100K. It might list out above $100K with all the options but starting price will be below a $100K with the lower end of the engine HP at around 450-500hp. Starting list will be $68,995

Remember GM doesn't know how the public is going to accept this new evolution of Corvette it could be a home run like the C7 or a hit and a miss. Miss on design, price and desire and you have 3 strikes.