Chevy Losing up to $20K on Base Model C8 Corvettes

Chevy source tells MotorTrend C8 Corvette was originally developed with a $79,995 targeted base price in mind.

When Chevy announced that the C8 Corvette would carry a base price of just $59,995, it sent shockwaves across the automotive landscape. After all, in some cases, rumors pegged the new mid-engine machine at well over the $100k mark. We wondered aloud how Chevy could possibly sell this clean-sheet design supercar for such a low price. And now, thanks to MotorTrend, we know. They’re obviously losing money on the deal, at least on cars that sell for less than $80k.

MotorTrend discovered this fact via a “senior GM source,” who confirmed that even a scheduled price increase for the 2021 model year won’t cover this massive loss. Apparently, Chevy originally designed the C8 Corvette with a target base price of $79,995. Problem is, that’s a massive increase over the C7’s entry price. Thus, GM was stuck between a rock and a hard place. Either take a loss or risk losing customers and the Corvette’s position as an incredible performance value.

Obviously, Chevy chose to go the former route. On the flip side, virtually no one will buy a no-option C8, and obviously it won’t be easy to find one on dealer lots. We’ve already seen that ticking enough boxes can easily drive a 2020 model Corvette well over the $100k mark, at which point Chevy is making a healthy profit.

MotorTrend‘s GM source also revealed that to profit on the upcoming Z06 and ZR1 Corvette variants while also selling enough of them, they’ll have to price them between $80k and $100k. Unsurprisingly, sales dip considerably once cars crest the six-figure mark. As MotorTrend points out, this could prove to be a tricky situation as well. The C7 Z06 starts out at $82,990. The ZR1, $135,090. Thus, GM doesn’t have a lot of wiggle room to increase prices on those models, either.

At the end of the day,  Chevy will undoubtedly make a profit on the new Corvette overall. Thanks mostly to a slew of pricey options. In fact, we imagine that the average transaction price of the C8 will land somewhere in the $80k range. Regardless, risking profits seems to have already paid off for GM, as the C8’s super low base price has generated incredible interest in the car that might not have existed otherwise.

Photos: General Motors

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