Corvettes European woes - Evo

[forza2.0]

Chevrolet Corvette's aren't selling in Europe. Seems to be related to some pesky sports car from Stuttgart...

By John Griffiths of the Financial Times

On paper it looks the bargain of the century, but at General Motors’ European HQ in Zürich, mild frustration is setting in at the Corvette’s seeming inability to make a sales impression across Europe.

The situation is nowhere near as bad as at Cadillac, where European sales have fallen far, far below targets. Cadillac was stuck at only 2500 units in Europe last year – just a quarter of its 10,000-a-year target for 2009-10.

The combined effect is for GM to be looking afresh at its relations with Kroymans Corporation, the Dutch group which it appointed as importer/distributor of both brands for the region. The biggest problem is in the UK, where Kroymans’ own appointment of Pendragon as a distributor has hit strife over strategy. Insiders say GM is beginning to regret not doing the job itself in Europe.

Corvette’s European sales last year were a record 1290, but that’s not saying much – Porsche sold almost 20 times as many 911s in 2006, most of them at much higher prices than the Vette. Within the year, however, the Corvette should be even harder for European customers to resist. Power outputs are to be raised again, and there will be a number of mechanical and styling tweaks, plus a limited edition run of 250 cars created in homage to the Corvette’s Le Mans victories.

Chevrolet Corvette | evo News | News | evo

 

[ExigeEvan]

I'm sure this was reported in last months (or 4 weekly) issue. However, the date says different.

I think the HUGE mistake that GM made was changing Daewoo to Cheverlet. It's one thing selling a Corsa and a VXR500 under the same badge but a 0.8ltr korean car and a sports car with a huge history!?

 

[Dave A]

I personaly think the C6 Corvettes biggest European market would be the UK, if they'd build the damn thing with the wheel on the right. It's recieved great reviews here, barring the Z06 which hasn't recieved great reviews in genenral across Europe, the C6 has. I think the general UK public in the market for a sportscar of that price and performance range are well aware of this, and if the C6 was offered in rhd I think a lot more would sell.

The flip side though is that despite being a more expensive car, the 911 is all round better, nice inside and out. The Corvette might sell better accross Europe if it actually had a nice interior and cost 5k more.

I do recall a small debate with somone over the C6's chances of success in Europe, they were adamant that there was no reason it shouldn't sell well, but I kept saying it wouldn't. These are probably the reasons why.

 

[Slick Rick]

I wouldn't buy a Corvette over a 911. Even though I prefer its looks(its stunning imo), it sounds better, its less common and its a head turner(you can see Porsche on almost every street in some parts of London) Id still get the Porsche or another euro equivalent because the Corvette still has that vulgar American image which puts people off imo.

 

[the Interceptor]

I must say I do think I understand why it isn't selling here. Don't get me wrong, I'm not saying it is a bad car. And if I had the money, the Vette would definitely belong to the circle of cars I'd consider to buy. But let's look at the situation in Germany:

Porsche has a name in making comfortable, quick and reliable cars in all Europe. Additionally, I am pretty sure that if people wouldn't buy a Porsche because they want to own a Porsche and not because they want a good car, Porsche wouldn't exist anymore. At least 50% of buyers in my book are people that do not appreciate the car, they just need to have it so they feel like they are someone.

The Corvette on the other hand still has the image of being a posers car, a car for getting as many women as technically possible as quickly as possible. Actually, it is surprisingly light, surprisingly economical and technically a perfectly fine choice. Still, all possible complaints I might get soon aside, it is not on par with other cars when it comes to interior and in some parts overall quality. That, and the bad image it has, are mainly responsible for the bad sales.

But there's another thing - the price. The US might wonder why people over here prefer other cars over the much cheaper american models. What they do not seem to consider is how much the cars are sold here for. Let me show you two examples. I took a V8 Mustang convertible from the biggest importer you'll find here (you can only buy imports), totally new car, and configured the exact same car on the US website of Ford. Here, you pay 44,510 Euros for the car, which equals 59,643 US$. For the exact same car, US citizens pay 36,470 US$. For the cheapest Corvette you can get here, the C6 coupe with a manual 6-Speed, you pay 65,290 Euros, which equals 87,489 US$. For the same car, US citizens pay 45,075 US$.

As you can see, there remains little reason for Europeans to buy a Corvette. Though the latest model is not as bad as many people might think, and technically is not only fine, but also the best Corvette ever, there's not much left that makes you want to have one at the end of the day when you live in Europe. Because for the same money, you can get a better made and just as sporty car with a better badge.

 

[JCE]

But there's another thing - the price. The US might wonder why people over here prefer other cars over the much cheaper american models. What they do not seem to consider is how much the cars are sold here for. Let me show you two examples. I took a V8 Mustang convertible from the biggest importer you'll find here (you can only buy imports), totally new car, and configured the exact same car on the US website of Ford. Here, you pay 44,510 Euros for the car, which equals 59,643 US$. For the exact same car, US citizens pay 36,470 US$. For the cheapest Corvette you can get here, the C6 coupe with a manual 6-Speed, you pay 65,290 Euros, which equals 87,489 US$. For the same car, US citizens pay 45,075 US$.

+rep I think that just says it all ladies and gents. Great post.

 

[MustangSVT]

American cars like Vette and Mustang (also any Chrysler and Cadillac and such) are much more expensive I think in Europe since they *have* to be imported, and it increases the price that much more.

Think about it this way (people from US). If a Cadillac CTS or a Chrysler 300 or such was the same price as a Mercedes E-class or if a Mustang was near the same price to a Boxster or M3 or something like that, you think many people would buy the american car over the european car over here? Doubt it. I think that's the situation in europe, I'm not even sure why they import cars to over there in the first place since it's such a small market.

On the other hand, over here stateside, the C6 Vette as well as the Mustang are much better sells compared to competition, be it japanese or european. It's hard to find as powerful and luxurious a car as the Mustang or the C6 in the same price bracket, ~30k and ~60k bracket respectively. I know if I had the money, I'd buy a brand new Vette over here in a heartbeat over a brand new Porsche 911. I don't have that sort of money though.

 

[Philly]

I thought there might be import charges, making the cars more expensive and therefore less desirable (one of their biggest sell points is their price.) I never would have thought the price would double, though.

How much more do cars like the 911 or M3, or even an E-class cost here compared to Europe? Is there going to be a $10K premium? I'm sure we aren't paying twice what you guys pay....

This makes me wonder what would happen if Chevrolet started bringing cars over and using their price to sell cars. I'm sure they would sell better because at those prices, they have lost everything they had over the competition. It shouldn't cost $40K to get a Corvette to Europe.

 

[the Interceptor]

How much more do cars like the 911 or M3, or even an E-class cost here compared to Europe? Is there going to be a $10K premium? I'm sure we aren't paying twice what you guys pay....

I looked up some figures, and I must say I was very surprised:

Porsche 911 Carrera
Germany: 79,938 Euros = 107,117 US$
USA: 72,400 US$
difference: 48%

BMW M3
I can't look that one up, cause they're just changing to the new model. Instead, I swapped to the ...

BMW M5 Sedan
Germany: 91,600 Euros = 122,744 US$
USA: 82,500 US$
difference: 49%

Mercedes E-Class 350 Sedan
Germany: 49,147 Euros = 65,857 US$
USA: 51,325 US$
difference: 28%

It doesn't seem like we're getting off the hook with our own cars, we pay at least 28% more than US citizens.

That on the other hand raises the question: if we pay so much more for cars, the US models still are bargains compared to the competition. So what do you get for Corvette money here? I'll go find some cars...

 

[Philly]

Wierd. I'm suprised you guys are paying so much more, even for cars that are built in your country. Maybe the US market is just that much more competitive, or it's just the much higher cost of living in Europe.

So does this mean that the Corvette is just victim to really poor marketing, or does it just not have the quality that is expected over there? Or maybe is it that Europeans just don't want an American car?

 

[ExigeEvan]

Right now I think it's a mixture of taxes and the weakness of the dollar. (Or is that just the strength of the pound?)

If they sold the cars in dollars over here then they would be flying off the parking lots!

 

[the Interceptor]

The target: what kind of cars do you get for 65,290 Euros - the money you pay for a standard C6 - in Germany?

Audi S4 Sedan (4.2l V8, 344hp): 55,600 Euros
Audi S5 (4.2l V8, 354hp): 55,900 Euros
BMW Z4M Coupe (3.2l I6, 343hp): 57,900 Euros
Mercedes Benz CLS 350 (3.5l V6, 292hp): 59,738 Euros
BMW Z4M Roadster (3.2l I6, 343hp): 59,900 Euros
Porsche Cayman S (3.4l B6, 295hp): 60,065 Euros
BMW 550i (4.8l V8, 367hp): 62,700 Euros
Audi A6 4.2 FSI Quattro (4.2l V8, 350hp): 63,300 Euros
Mercedes Benz E500 (5.5l V8, 388hp): 64,498 Euros
Chevrolet Corvette C6 Coupe (6.0l V8, 400hp): 65,290 Euros
BMW M3 '07 (4.0l V8, 420hp): 66,650 Euros
Mercedes Benz SLK 55 AMG (5.5l V8, 360hp): 67,770 Euros

As you can see, this segment is not short of good cars. Although the majority of these are not as quick on a track as the Corvette, you still have to admit that there are some you'd like to get your hands on for that kind of money, probably even more than on a Corvette. See the problem?

If you could buy the C6 for same same price US citizens pay, which would be 33,638 Euros, I'm sure it would be ripped out of the showrooms like there's no tomorrow.

 

[McLaren]

Wow! You're telling me I could get a brand new M3 in the U.K. for just 1,000 Euros more over a C6 Corvette?

Jeez, no wonder the poor things don't sell. How bad are the Z06 sells? I hear in Europe, you guys pay over 125,000US for one.

 

[the Interceptor]

Wow! You're telling me I could get a brand new M3 in the U.K. for just 1,000 Euros more over a C6 Corvette?

I don't know about the U.K., but in Germany: yes!

Jeez, no wonder the poor things don't sell. How bad are the Z06 sells? I hear in Europe, you guys pay over 125,000US for one.

That's right, we pay 86,150 Euros, which is just above 125,000 US$. There's not as much competition in that segement, because it just lies inbetween the biggest standard models and the sharpened badass ones. Appropriate cars you can get are ...

Audi RS4 Sedan (4.2l V8, 420hp): 71,700 Euros
Chevrolet Corvette Z06 Coupe (7.0l V8, 500hp): 86,150 Euros
Mercedes Benz CLK 63 AMG (6.2l V8, 388hp): 89,904 Euros
Porsche 911 Carrera S (3.6l B6, 355hp): 90,529 Euros
BMW M5 (5.0l V10, 507hp): 91,600 Euros

I have seen Z06s here, but they are very rare.

 

[Dave A]

Right now I think it's a mixture of taxes and the weakness of the dollar. (Or is that just the strength of the pound?)

If they sold the cars in dollars over here then they would be flying off the parking lots!

I have to agree with that. Over here the Vette loses it's whole "it's a bargain" thing and instead people say "for that price it should at least have a decent interior.

 

[Philly]

I have to agree with that. Over here the Vette loses it's whole "it's a bargain" thing and instead people say "for that price it should at least have a decent interior.

Even if it was still a bargain, Europeans still might not be totally willing to buy it. I remember when Opels started coming we all thought: Sweet. German car. This car should have a great interior, otherwise it wouldn't sell over there.

It just seems that you have much higher standards for interior/overall quality and put that ahead of the price of the car.

EDIT: I'm really suprised at the cars the C6 and Z06 compete with price-wise. Most of those are a good $20k to $35K more expensive over here. It really makes sense. Over there, you can get a better car for not a lot more. Although, the Corvette probably would still sell pretty well at the prices you guys are paying.

 

[Tornado]

Chevrolet Corvette C6 Coupe (6.0l V8, 400hp): 65,290 Euros
BMW M3 '07 (4.0l V8, 420hp): 66,650 Euros

Freaking ouch. That kinda completely ruins the Corvette's appeal. I know I wouldn't want one if I could save up for anothet month and buy an M3.

Chevrolet Corvette Z06 Coupe (7.0l V8, 500hp): 86,150 Euros
Porsche 911 Carrera S (3.6l B6, 355hp): 90,529 Euros

You see, in relation to the base Corvette's fairly uncompetitive pricing, it seems as if Chevy gives away Z06s in Germany. At least when compared to German cars. I would still probably buy an RS4 over the Z06, though, but that is just because the RS4 is sweet.

 

[McLaren]

I don't know about the U.K., but in Germany: yes!
That's right, we pay 86,150 Euros, which is just above 125,000 US$. There's not as much competition in that segement, because it just lies inbetween the biggest standard models and the sharpened badass ones. Appropriate cars you can get are ...

Audi RS4 Sedan (4.2l V8, 420hp): 71,700 Euros
Chevrolet Corvette Z06 Coupe (7.0l V8, 500hp): 86,150 Euros
Porsche 911 Carrera S (3.6l B6, 355hp): 90,529 Euros
BMW M5 (5.0l V10, 507hp): 91,600 Euros

I have seen Z06s here, but they are very rare.

Is it this bad for other American cars, i.e., the Viper, GT500, Ford GT?

 

[Dave A]

Yes. The Viper costs £77.500, that's $156,806. The GT500 we don't get here, the Ford GT was £120,900 which is $241,497.

To put thoes prices into perspective, the Ferrari F430 coupe costs £2000 less than the GT, and the Porsche 911 GT3 costs £4750 less than the Viper cabriolet.

 

[Kylehnat]

I personaly think the C6 Corvettes biggest European market would be the UK, if they'd build the damn thing with the wheel on the right.

I'm pretty sure the Corvette only has one assembly line, so that ain't gonna happen.

The Corvette might sell better accross Europe if it actually had a nice interior.

Again, it ain't gonna happen. GM puts awful, awful interiors in every single vehicle it makes. It's one of their greatest weaknesses, along with reliabilty, styling, performance, and safety.

Let's face facts: Chevrolet never designs the Corvette with the European market in mind. They build a strictly-American car, and then try to sell it Europe. But honestly, the United States is the only Corvette market that matters to GM.

 

[Tornado]

To put thoes prices into perspective, the Ferrari F430 coupe costs £2000 less than the GT

Am I the only one who doesn't see that as a problem?

 

[ROAD_DOGG33J]

They build a strictly-American car, and then try to sell it Europe. But honestly, the United States is the only Corvette market that matters to GM.

I remember hearing that the styling of the C6 was somewhat catered to the Europeans.

Am I the only one who doesn't see that as a problem?

Other than that the Ford GT was a good deal cheaper in America then no. It was a pretty good bargain.

 

[Tornado]

I remember hearing that the styling of the C6 was somewhat catered to the Europeans.

What a joke. The C6 wasn't "styled" so much as it was "C5 with a bad bodykit."

 

[Kent]

Big suprise, the legendary (and deservedly so) 911 is outselling the Corvette in Europe.
I wouldn't be too suprised to see the 911 nearly or actually outselling the Z06 in the US (the normal C6 maybe not too easily).

Point is, I'm not suprised with europeans buying other cars more than the Vette.

As for the reasons why... I believe it is more complex than anyone has said up to this point.

 

[Tornado]

I believe it is more complex than anyone has said up to this point.

Less dentists in Europe than in America?

 

[JCE]

Audi S4 Sedan (4.2l V8, 344hp): 55,600 Euros <-- I'll take on of these in yellow
Audi S5 (4.2l V8, 354hp): 55,900 Euros
BMW Z4M Coupe (3.2l I6, 343hp): 57,900 Euros
Mercedes Benz CLS 350 (3.5l V6, 292hp): 59,738 Euros
BMW Z4M Roadster (3.2l I6, 343hp): 59,900 Euros
Porsche Cayman S (3.4l B6, 295hp): 60,065 Euros
BMW 550i (4.8l V8, 367hp): 62,700 Euros
Audi A6 4.2 FSI Quattro (4.2l V8, 350hp): 63,300 Euros
Mercedes Benz E500 (5.5l V8, 388hp): 64,498 Euros
Chevrolet Corvette C6 Coupe (6.0l V8, 400hp): 65,290 Euros
BMW M3 '07 (4.0l V8, 420hp): 66,650 Euros
Mercedes Benz SLK 55 AMG (5.5l V8, 360hp): 67,770 Euros <-- I'll take on of these in black on black

Those are my choices over the Corvette. But truth be told I'd take 90% of that list over a Corvette...well actually I liked more like 100%.

Yes. The Viper costs £77.500, that's $156,806. The GT500 we don't get here, the Ford GT was £120,900 which is $241,497.

Some Ford dealers marked the GT up over sticker to as high as $240k. The Ford dealer I work for sold the last one they had for $225k. Not really that much of a price difference there.

 

[Casio]

You European's get a bargin, check the Australian Price for a Z06

Z06:
250,000 AUD
$213,000 USD
158,000 Euros

 

[Kent]

Less dentists in Europe than in America?

I suppose this would be a good time to make a joke about the various european dental care systems?
Nope, not for me...

That said, I'm not really sure I understand the correlation... I mean, if dentist drive Z06s then why do they kill themselves so much here in the states? My guess- because they don't drive z06s.

 

[the Interceptor]

You see, in relation to the base Corvette's fairly uncompetitive pricing, it seems as if Chevy gives away Z06s in Germany. At least when compared to German cars.

I agree, the Z06 is about 15,000 Euros cheaper than the similarly-performing competition, such as an Audi R8, A Porsche 911 Turbo and other cars. However, at that price range, people that have this kind of money will gladly spend another 15,000 Euros for getting a german badge and a higher quality interior.

 

[Hugo Boss]

I agree with Inty about the arguments for the Corvette not being a success in Europe. Because of all the taxes cars are a lot more expensive. Here in The Netherlands a Z06 sells for 121.290 Euros / 162.530 US$. For that amount of money you can (almost) buy a 911 S or a well equipped RS4. Although our unemployment rate is lower than in the US, our wages are also lower. In return our retirement and health care is better taken care of, but it means that cars are an expensive joke here compared to North America. Most of the people that can shop for cars in that price range, demand qualities that exactly the Corvette doesn't offer. They want an elegant or stylish car with a well-build interior. The Corvette still offers a lot of bang for it's bucks, but it's simply beyond the reach of most people that desire American V8's. We do have a fair share of people that like American cars, but they're mostly less educated so they end up driving older Americans from the 70's/80's.

Although the C6 is actually too expensive to do well here, it's actually a bargain compared to the Viper SRT10. For the price of a Viper (200.000US$) you can also get a V8 Vantage. Go figure...

An argument that isn't mentioned before in this thread, is the desirability of the C6. The Corvette has a great heritage, but it's only known in North America. Little kids here have posters above their bed from Porsches, Ferraris and Lamborghinis, but not from Corvettes, Vipers and Mustangs. You people in America grew up with muscle cars, so it's likely you desire to own one too later. As a little kid I could already distinguish a lot of European cars by the shape, by the lights (during night) or by the engine sound. Only when I spotted something that was big, rectangular and made a lof of noise, it was "probably something American" in my eyes. I think American cars lack a true identity in the eyes of Europeans, or it's not the identity we're after. The interiors and exteriors of American cars are just too functional, bland or sometimes vulgar for West-European car buyers.

GM needs to make sure the next Corvette has a more challenging exterior and make it the first American car with a proper interior. The performance and handling are more than ok already, but it needs a premium identity. I'm sure it will sell here in Europe then. Also when GM increases the price...

Now I think of it (partly off topic), another argument why American cars hardly sell here is that the US manufacturers always entered the most difficult segments of the market here. What Americans call compact, is called a large sedan here. In case of large sedans, Europeans expect other unique selling points than a low price and a lot of space and comfort. Those arguments are only a key to success in the smaller segments. The Koreans and earlier the Japanese scored with cheap and simple small cars. Chevrolet (Daewoo) is doing well now here, with the small and compact cars. The Captiva is doing quite well too. If they can keep it up, they can slowly work on their image and interior quality and eventually explore the higher segments. I'm sure Chevrolet can be more succesful then, because the Japanese succeeded too. Only the Japanese aren't as cheap anymore as they used to be, so there's an opportunity for Chevrolet...