GM losing $20K on each base Chevy C8 Corvette
The mid-engine 'Vette isn't profitable until the price tag hits $80,000.
General Motors is reportedly expecting to sell the 2020 Chevrolet Corvette at a significant loss, necessary for the company to keep its promise of a sub-$60,000 entry price.
It is not uncommon for automakers to sell certain models below their break-even point, especially for halo vehicles that require a disproportionate share of development funds per unit versus high-volume nameplates.
A GM source has told MotorTrend that the company had budgeted the C8's development around a theoretical starting price just shy of $80,000, suggesting the 2020 model year will bring a loss of up to $20,000 for each base model sold.
The 3LT trim presumably softens the hit with its $71,945 price tag, while the Z51 configuration adds another $5,000. The company is presumably hoping most buyers tack on a few additional enhancements from a lengthy options list that includes a $4,850 ground-effects kit, $3,495 carbon-fiber dual roof, $2,695 wheels, and $1,500 in carbon trim for the interior.
The break-even gap will be further narrowed for the 2021 model year when the base model rises above the $60k mark, however the price floor is unlikely to change by more than a few thousand dollars per year. The next Z06 and ZR1 editions will almost certainly span both sides of the $100,000 line, respectively, with the former rumored to feature a new V8 engine borrowed from the C8.R racer and the latter expected to add hybrid tech for 900 horsepower.