General Motors Is Losing As Much As $20,000 On Every New Corvette It Sells

General Motors Is Losing As Much As $20,000 On Every New Corvette It Sells

Jaws were dropping in the auto industry when GM revealed that the new mid-engined Corvette would be priced at $60,000. Well, according to Motor Trend, it turns out the automaker will be taking a loss on every C8 Corvette that's sold for less than $80,000.

This isn't totally unheard of in the car industry though. There are other manufacturers who decide to take the risk of selling halo cars with a loss, hoping the regular "bread and butter" cars will take up the slack and turn a profit for the company.

3. Was It Planned?

Apparently, the new C8 was supposed to cost $79,995, due to the new tech, changed configuration, and redesign. However, that would be a huge price increase compared to the previous C7 model. In order to keep their customers and avoid complaints, Chevy has decided it's ok to take a loss, and hope they'll be able to turn those $60,000 'Vettes something closer to $80K through accessories and optional extras.

2. There Will Be A Price Increase

Chevy has already said the sub-$60K base-model Corvette won't last beyond the 2020 model year, with rumors of additional price increases in the following years. With time, there will also be the addition of various high-performance versions, bringing up the Corvette's bottom line.

1. Flagship Models Will Save The Day

The C7 ZR1 started at $120,000 but fully specced it would cost more than $150,000, and these high-end models are much more profitable than the base models. Also consider that the C8 top-spec models will be vastly more expensive than that, with the C8 Stingray Z51 3LT already being close to $90,000. There's also the rumored all-wheel-drive and hybrid versions. All things considered, we think the C8 will make GM some money.