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Is GM Cutting Dealer Z06 Allocations?

by Keith Cornett on January 31, 2006

From reading the various forum threads where dealers are known to post, it seems some are upset about the 2nd half allocation letters GM sent to its dealers last week. The letters project the total Z06′s Corvette dealers can expect to receive between February and May 2006. While it appears that the same number of Z06′s are being produced, GM may be cutting allocations from some of its dealers with more volume so that they can get Z06′s into the hands of some of their 3rd and 4th tier dealers. Due to the demand for the Z06, some dealers have reportedly marked up the Z06 $15,000-$20,000 over MSRP. Other dealers are taking orders for the 2007 model year and beyond. Looks like the buyer that wanted to “wait and buy it later in the model year and save a couple grand” is out of luck. Here is a copy of an allocation letter with the dealers information removed: ————– XXXXXX
XYZ Chevrolet
123 Main Street
Anywhere, ST XXXXX
Attention: Dealer Operator and New Car Sales Manager Subject: Corvette Z06 Allocation Projection The 2006 Corvette Z06 distribution plan includes the provision of an extended allocation projection to all eligible Corvette dealers. This is a projection and not a commitment but is intended to assist dealers in managing customer expectations in line with dealer allocation. While keeping in mind the realization that the Z06 will remain a limited production vehicle, we have been working diligently to increase Z06 production to maximize our ability to satisfy customer demand for this great automobile. As a result, production schedules were not formalized in time to allow us to provide this second extended allocation letter originally intended for publication in December. Your dealership’s projected Z06 allocation through May 2006 production appears below. Please keep in mind that this allocation projection is based on an estimated production schedule and therefore must continue to be considered as a projection and is not to be considered an absolute commitment. Your Z06 Estimated Allocations are: February March Est April Est May Est 2nd Outlook
Allocation Allocation Allocation Allocation Cum Total
# # # # # If a dealer chooses not to consent to their Z06 allocation, that allocation will be redistributed to another eligible dealer during the variance resolution and will not be rolled forward nor will it be converted to regular Corvette allocation. CORVETTE MARKETING TEAM Source: CorvetteForum.com | DigitalCorvettes.com

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