Sponsored

2020 GT500 CFTP Destroys C8 Corvette - Motortrend Comparison Review

Idaho2018GTPremium

Well-Known Member
Joined
Nov 20, 2018
Threads
20
Messages
1,550
Reaction score
1,407
Location
Idaho
Vehicle(s)
2021 Camaro ZL1 A10
All what you said is true. You took economics in college I presume? But also the more parts are replaced by other vehicles, say the 5.5 Blackbird and they write off the losses for the 6.2L and use existing engines, etc, the more profitable it can be quickly. Even better, if GM makes another Cadillac "corvette" XLR, the costs really go down.
No, I didn't take economics, I'm actually a mechanical engineer. But as part of my job I occasionally have to do extremely detailed business case evaluations to determine the best technology to use for a given scenario, so I have a decent understanding of the economics of things like this. I am by no means an economist or economic expert, though!
Sponsored

 

roygriffin2020

Banned
Banned
Banned
Joined
May 27, 2017
Threads
24
Messages
1,219
Reaction score
337
Location
North America
Vehicle(s)
Big Red reincarnated
No, I didn't take economics, I'm actually a mechanical engineer. But as part of my job I occasionally have to do extremely detailed business case evaluations to determine the best technology to use for a given scenario, so I have a decent understanding of the economics of things like this. I am by no means an economist or economic expert, though!
I am a Software Engineer II, I wrote the software to do just that.
 

Boss2013

Well-Known Member
Joined
Sep 10, 2012
Threads
3
Messages
177
Reaction score
153
If that is true, then using that logic, and flawed I might add, then the GT500 is not Ford's Halo car as compared to the Mustang EcoBoost 4 banger. The GT500 is just an option package. Sure....then why is the EcoBoost not under Performance Cars on Ford's website. It is under Cars with the Fusion and Fiesta that they will no longer make.
Actually, the Fusion and Fiesta are the only passenger cars, other than the Mustang, that they will make. Those will not be going away.
 

Hack

Well-Known Member
Joined
Nov 26, 2014
Threads
86
Messages
12,832
Reaction score
8,256
Location
Minneapolis
Vehicle(s)
Mustang, Challenger
You're probably right that GM's price to build the base C8 is likely less than the MSRP. However, that is only part of the pie that goes into the cost of a car. They are factoring in R&D and tooling costs into that equation and all that must be paid off before the end of the C8's life cycle. If not, then the car is a financial loss. This info. likely is trying to say that at base price, GM could never pay off the R&D and tooling costs in the lifetime of the C8 generation (i.e., in the next 7-9 years). That is selling them at a loss. It takes higher prices to break even and exceed the R&D and tooling costs during the C8's generation.
Yes we agree 100%. I would go so far as to say you basically repeated what I said.
 

Sponsored

Boss2013

Well-Known Member
Joined
Sep 10, 2012
Threads
3
Messages
177
Reaction score
153
You already answered your own question. They are most definitely factoring in R&D costs, which will amortize over time, resulting in more profit the longer they make the car.

I thought the base c8 price was going to be higher, was shocked when 60k was announced. At this point it's hard to say how much a Z is going to cost.

If they build a new DOHC engine that will be used in multiple vehicles, I could see the price being lower, but with EV's taking over, is it really the right time to invest in a brand new v8 platform? If they build a unique engine for the car, then yeah, I think near 100k starting point is probably realistic.

I have no desire to downgrade to a base c8 from my ZL1. Even if its puts power down better, there's no way that car is going to be as fun.
Read the articles. The base Stingray price will only be where it is for the first model year. They have every intention of raising the price of the base C8 beginning with the 2021 production model year. $60K base will not be the norm.
 

MaskedRacerX

Driver
Joined
Sep 20, 2015
Threads
73
Messages
5,611
Reaction score
4,688
Location
Vilano Beach, FL
First Name
DT
Vehicle(s)
'21_JWS4XE / '21_TM3P
Read the articles. The base Stingray price will only be where it is for the first model year. They have every intention of raising the price of the base C8 beginning with the 2021 production model year. $60K base will not be the norm.
The ol' Nissan GT-R maneuver ... :D
 

millhouse

Well-Known Member
Joined
Jun 27, 2016
Threads
18
Messages
2,652
Reaction score
1,217
Location
Simpsonville SC
Vehicle(s)
2016 Ruby Red GT PP
If that is true, then using that logic, and flawed I might add, then the GT500 is not Ford's Halo car as compared to the Mustang EcoBoost 4 banger. The GT500 is just an option package. Sure....then why is the EcoBoost not under Performance Cars on Ford's website. It is under Cars with the Fusion and Fiesta that they will no longer make.
Except, the GT500 doesn't have "mustang" anywhere on the vehicle or title.

The GT500 isn't an option package, it's an entirely different vehicle....according to Ford.

The more I talk about it, the more I sound like I'm arguing just to argue. I have no problem calling the ZR1 GM's halo car. Carry on.
 

Sponsored

millhouse

Well-Known Member
Joined
Jun 27, 2016
Threads
18
Messages
2,652
Reaction score
1,217
Location
Simpsonville SC
Vehicle(s)
2016 Ruby Red GT PP
I doubt above 100K starting because where it is now. Let's say it is, it will get 10-20K off MSRP at some point in 2nd or 3rd year per historical trend.
I wouldn't look at past trends with the C8. The Z06 engine is going to be costly, similar to the voodoo. The additional bits and pieces that make up the Z06 are going to be costly. Quite frankly, I would be shocked if the Z06 comes in under $100k, and I fully expect it to be even more exclusive than past offerings. GM is going to try to make this their supercar track pack...and it's going to carry a hefty price tag.
 

roygriffin2020

Banned
Banned
Banned
Joined
May 27, 2017
Threads
24
Messages
1,219
Reaction score
337
Location
North America
Vehicle(s)
Big Red reincarnated
So you use Excel ... ?
An SE really does not use Excel, that is for users. But I do write software that can create an Excel spreadsheet and email it all at the same time.
 

millhouse

Well-Known Member
Joined
Jun 27, 2016
Threads
18
Messages
2,652
Reaction score
1,217
Location
Simpsonville SC
Vehicle(s)
2016 Ruby Red GT PP
An SE really does not use Excel, that is for users. But I do write software that can create an Excel spreadsheet and email it all at the same time.
I ate a PB&J sandwich while watching the news.
 

roygriffin2020

Banned
Banned
Banned
Joined
May 27, 2017
Threads
24
Messages
1,219
Reaction score
337
Location
North America
Vehicle(s)
Big Red reincarnated
Actually, the Fusion and Fiesta are the only passenger cars, other than the Mustang, that they will make. Those will not be going away.
upload_2019-12-19_15-19-10.webp
 
 








Top