Bradan Donaldson
With the introduction and continued demand for the C8 Corvette, it’s been all roses for a lot of Chevy dealers looking to cash in on the feeding frenzy over the car.
With the all new 2023 Corvette Z06 set to enter production this summer, GM North America President, Steve Carlisle has now put those dealers on notice with the following statement:
Dear GM Dealership Team,
We are all very excited about recent GM news and product launches including the Chevrolet Corvette Z06, Chevrolet Silverado EV, GMC HUMMER EVs, GMC Sierra EV, and Cadillac LYRIQ. At the same time, we have both been working hard to meet customer demand in a time of constrained supply of inventory due to the global industry-wide semi-conductor shortage.
Unfortunately, it has come to our attention that in connection with some of these announcements and launches, a small number of Dealers have engaged in practices that do not support a positive sales experience for our customers. This puts our collective interests at risk and generates negative press that reflect poorly on GM’s brands and your dealerships. Specifically, it has come to our attention that some dealerships have attempted to demand money above and beyond the reservation amounts set in GM’s program rules and/or have requested customers to pay sums far in excess of MSRP in order to purchase or lease a vehicle.
First, I want to remind you that GM dealers are obligated to ethically and lawfully sell GM Products, as stated in Article 5 of the Dealer Sales and Service Agreement:
“Dealer agrees to effectively, ethically and lawfully sell and promote the purchase, lease and use of Products by consumers…”
“Dealer agrees to advertise and conduct promotional activities that are lawful and enhance the reputation of Dealer, General Motors and its Products. Dealer will not advertise or conduct promotional activities in a misleading or unethical manner, or that is harmful to the reputation of Dealer, General Motors, or its Products.”
Providing customers misinformation about additional sums being necessary for a customer to keep a reservation, is just one example of a tactic that reflects poorly on all of us.
Secondly, we have been advised that brokers are promoting new GM vehicle allocation. While the majority of GM Dealers do not support such behavior, a small number of Dealers still continue to work with brokers despite the following reminders that this is a direct breach of the GM DSSA: Bulletin #20-06 “Transactional Integrity and GM Export Policy” dated July 1, 2020, and Bulletin #21-17 “Sale for Resale or Export” dated November 22, 2021. As stated in Article 5 of the Dealer Sales and Service Agreement: “Dealer agrees that it will not sell new Motor Vehicles for resale” and “Dealer is not authorized . . . to . . . sell Motor Vehicles to persons or parties (or their agents) engaged in the business of reselling, brokering (including but not limited to buying services) or wholesaling of Motor Vehicles.”
GM will be forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity that customers expect from the Chevrolet, Buick, GMC, and Cadillac brands. For the small minority of bad actors that are engaging in the conduct identified above, this letter serves as notice that GM reserves the right to redirect your vehicle allocation or take other recourse prescribed by the Dealer Sales and Service Agreement.
If you have any questions or comments, please reach out to your Zone Manager.
Regards,
Steve Carlisle
President GM North America
Source: General Motors
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27 comments
It’s about time GM put a collar on the wild overpricing, broken reservations, and other shenanigans some dealers have gotten away with in selling the C8 Corvette and other high demand products. Now let’s see if they start to behave.
I have been buying Corvettes First one an 1969 stingray and 4 more. I have a2014 C7 now. I have been trying to buy a new C8 for the last year and half. Rick Hendrick in Charleston SC. Said I could order one if I paid $10000.00 over list
I walked away from a corvette purchase due to market adjustment bs. If there is an honest, ethical dealer or customer advocate that would like to sell me a corvette, please reach out to me.
Wow Rick Hendricks in ATL GA is demanding a mandatory 25k over for an additional “package”.
GM needs to do what Tesla and now Ford are doing and eliminate the dealer or control the inventory of high demand vehicles to help them keep better track of sales and save buyers from being taken advantage of by gridy dealers.
It’s about time to end the dealer model. I’d much rather deal with GM directly than some frustrating dealer and their sales or service departments.
This is an interesting dilemma for dealers. Example. A used 2021 vehicle comes in on trade to purchase a New 2022 (Same make and model but with 5,000 miles). The used vehicle has a trade in value that exceeds the new vehicle’s MSRP by several thousand. Should the dealer just give the new vehicle to the customer as an even trade for the trade-in? After the dealer smogs, safeties, certifies and adds reconditioning costs (approx $1k to $2k even more sometimes), what should the dealer sell the used vehicle for? Who would buy that used vehicle for several thousand over what a similar new vehicle would cost if the dealer is forced to sell the new vehicle at MSRP?
If the new car was sold as MSRP, the market would change and the used car wouldn’t be worth as much. Very simple supply and demand economics.
Not likely the trade would be worth more than new unless was somehow special, i.e. an anniversary edition or other highly desired or collectible upgrade.
Hello Steve Carlisle,
I called and went to multiple dealers here in Southern California. I asked and showed this article to the sales person because he showed the market adjusted value shown in this article. He told me I would have to talk to his manager. I spoke to the manager and he told me the GM MSRP is suggested and they do not need to follow GM rules. The dealership in Long Beach, CA, Torrance, CA and Carson CA. All these dealership told me there is no such agreement with GM manufacturing. I guess this press release coming from is just a joke to them. If you need the names of these dealer employees I can definitely provide. I know your doing the right thing but it appears the dealers here in CA think your a joke.
Ariel Trajano
It won’t be a joke when GM picks one or two misbehaving dealers to set an example and completely cuts off their supply of C8s and other high demand products, diverting their allocations to dealers charging MSRP. Lawsuits will follow but GM will win.
These inflated prices have been going on for almost a year and Steve Carlisle has known this with GM’s updated weekly and monthly gross profit analysis. He has chosen to do nothing because he does not control the market. It has also been happening at every manufacturer at some level. Also with every lender who still lends enough money to buyers even on vehicles that are overpriced. The average automobile owner is also doing the same thing. When they sell their personal vehicle and take advantage of these ridiculously inflated values. Unsurprisingly though, when a dealership does it, it’s a sin worthy of notifying the authorities and punishable by banishment. Sad times.
Hi I was talking with a sales rep on 3/5/2022
They told me the price for the car also sent me the window sticker for the as well as I have screen shot of the car posted on the internet for the same price I called them the following day to go buy the car and the dealership manager said they will not sell the car for that price it went up $30,000 when I called the next day that is so wrong Jenkins Chevy Chevrolet of homosassa fl
Dealers should also be required to return the market adjustment that buyers had to pay in order to purchase the new C8.
Thank you GM!!!
Is a class action law suit even possible.
The largest dealers ,in terms of Vette sales, are not charging a penny over list. Why bother with those who are?
I HOPE GM TAKES ACTION ON DEALERS THAT OVERPRICING THE INVENTORY
I ordered a C8 Corvette from my local dealer in Canada oct 2020 I was put on list by Dec my order was approved with a but I was told I could not resale it for a year which I agreed to by mid May my car arivid and as they told me my cost would be MSRP and that is what I paid for Thank You and we are enjoying our new car
So if I know of a dealership that is price gouging is there a way for to report them?
In April, 2021 I started the process to order a new 2022 Corvette for my wife from Garrett Motors in Coolidge, Arizona. For the most part I dealt with the general manager, Eva Moore, and later with J.D.Garrett.
Everything was done in writing and there are no facts in dispute.
From the outset they agreed in writing to sell me the car at MSRP.
They finally received the car in February, 2022. Being bright red, it attracts a lot of attention. They sent me an invoice on Friday, February 11, 2022 for the MSRP amount. The invoice displayed their name, my name, the details of the car, its price and VIN.
Immediately that day I started the process to wire transfer the entire purchase price to them, and this was completed forthwith. They acknowledged February 16 they had received the required amount, and started that day making arrangements for title and registration.
Later that day they cancelled the sale.
We must be reminded due to high demand, these cars are often selling for much more than MSRP. Some dealers are taking advantage of the high demand and are transparently adding up to $25,000 or more to the MSRP right up front when a customer orders a car. That did not occur here.
Of course, there will be litigation.
Sue the heck out of them! And let us know what transpires.
The is all bluster on GM’s part. I’ve been a loyal GM owner – first car was 1975 Pontiac Grand Prix, purchased new, just recently sold my 2018 Hot Wheels Edition Camaro SS Convertible and likely won’t be looking at GM products in the future. The fact that there are literally no dealers in the Phoenix metro area where you can purchase or order a new Corvette at MSRP is ridiculous. GM is aware of this and has done nothing about it. Very disappointing.
I am seeing the cars listed on cargurus.com at sticker. Then when you call in a sales person tells you the car is 100,000 and up OVER THE STICKER PRICE.
GM should investigate Baierl Chevy I Pittsburgh. They have a 2023 Vet on sale at their Honda used car division that’s is being flipped at an inflated price contrary to GM policy against such actions. They have created a phony deal for the car that “FELL THROUGH” and moved the car to a used car lot at a company owned Honda used car lot on RT 19 in Wexford PA.
Just daw a Chevrolet Dealership on Cleveland Ohio advertising their allocated 2023 Z06 Convertible for $100K over sticker. They laughed when I asked how they can do this, laughing they replied GM won’t do a thing!! I take exception to this as a retired GM employee and grew up in family Chevrolet Dealership !
We need to report these dealerships dbl price charging
LOCATION
SERPENTINI CHEVROLET OF MEDINA
3880 PEARL RD MEDINA OH 44256-9001
VIN
1G1YF3D32P5604209
Current Offers
Specifications
MSRP
$157,770
Dealer Discount 1
+ $100,000
Internet Price
$257,770