As 2014 and 2015 unsold C7 Corvette Stingrays fill up dealers lots, the desperation makes sales incentives grow

Yes, +General Motors and their subsidized (hopefully and not so dumb on its own) automotive press continues to press on with the extent of sales success Stingray supposedly creates.    The typical figure tossed around is that of over 37k 2014 Stingrays produced.  The key is here PRODUCED, not sold.  As this blog already pointed out, there was over 1500 UNSOLD 2014 new Stingrays clogging up dealers lots, with no takers.  Even though one would like to assume that large volume dealers are the one with cars sitting around, this is not the case at all.  Small dealers, with small allocations sit on these cars as well and considerably longer than large dealers since they do not have the ability to issue large sales incentives as the large dealers can afford.

The only dealers who manage to sell their cars in timely fashion and without huge incentives are small dealers, with purchase ordered taken from actual buyers.  Everyone else is sitting on Stingrays and the situation is getting pretty bad due to 2015's being already delivered for over a month.

As also pointed out in this blog, the number of unsold 2014 cars is considerably larger than it was back in 2005, with introduction of C6.  This number of unsold cars is the real indicator of Stingray as a sales success or more specifically how much of a failure it already is.

Why is this 2014 unsold cars number so important?  This number dictates the resale value of used Stingray sales, causing a chain reaction leading to severe beating typical sellers will be taking when selling outright or trading them in to the dealer for the next purchase.  In other words, the resale value of unsold Stingrays takes a huge plunge when the used cars have to compete with new unsold Stingrays offered at very hefty discounts.

Overall, the seventh generation Corvette sales are already heading toward a huge failure, especially considering that winter is coming soon and most large volume dealers are in the snow belt states and this means super slow sales in the second year.

The pieces of Corvette C7 sales domino are already collapsing and it does not take a genius to figure out that overproducing these cars in the first year, with a slew of major quality and mechanical reliability issues, combined with the announcement of new automatic transmission was a super stupid move, meaning super quick extra profits for GM but long term sales and profits losses for both GM and dealers. 

If GM was smart, the production in the first year would be limited, to about half of the produced cars.  This would assure no left over unsold cars on the lots, stronger resale value for the used Stingrays and continuous demand for the car during the following years, while retaining higher prices for the car and more per unit profits for both GM and dealers.  But of course, GM is stupid, super stupid in fact and arrogant as well, just like the dealers selling this turdy car.  Now, all of them will have to pay the price for this blatant act of stupidity and arrogance, heavily discounting both left overs and 2015 cars to sell the current inventory before snow comes back.

Will GM wise up and limit production for 2015?  This is very doubtful, GM stupidity knows no limits and the dealers are not any better.  Both of them fail to understand that the honeymoon is over and things are starting to spiral downwards for everyone involved.  1500 unsold 2014 cars means 1500 less 2015's sold, plain and simple.  If production is based on the last year figures, the failure and discounts will continue to grow.

Can Z06 turn things around?  Not a chance, in fact, Z06 will make matters worse and the early adopters paying full MSRP on those porkers will be learning their lesson just like the early 2014 buyers, except it will be way more expensive lesson. 

Here is an example of what already takes place.  2014 Stingrays discounted at over 8k mean about 12k loss in used Stingray values, under most conservative scenario.

Since the discounts on 2015 cars already exceed 5k IN THE FIRST MONTH OF SALES, the sales failure for 2015 should be quite spectacular and set the trend for the following years, creating a very strong possibility this generation of Corvette will live a very short time.  Tough luck for sure...LOL