GM Warns Greedy Dealers About C8 Z06 Corvette Markups
Dealers that get crazy with C8 Z06 Corvette markups could face consequences including lost allocations.
Markups were a thing long before the pandemic and resulting supply chain crisis came along, but that issue has only intensified in the wake of resulting automotive production cuts. Demand for virtually all vehicles exceeds supply these days, which has sent prices soaring to insane new heights, though that has done little to quell demand for hot vehicles like the C8 Corvette. However, General Motors is seemingly well aware that price gouging is a problem for its image, which is why GM North America President Steve Carlisle recently sent a letter to dealers warning them about C8 Z06 Corvette markups, which is viewable over at Corvette Action Center.
The letter specifically targets C8 Z06 Corvette markups, along with other future products such as the GMC Hummer EV and Silverado EV. “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,” Carlisle said in the letter. “This puts our collective interests at risk and generates negative press that reflects poorly on GM’s brands and your dealerships.”
Examples of these nefarious practices include “demanding 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,” according to Carlisle. However, this isn’t just lip service, as it appears that the automaker plans to do something if greedy dealers don’t heed this warning.
GM will reportedly be “forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity of its brands.” This could include redistributing C8 Z06 allocation to another dealer, or “other recourse prescribed by the Dealer Sales and Service Agreement.”
The automaker can’t legally force dealers to sell its products for a certain price, but it’s clear that GM is well aware of the negativity that surrounds markups and other tacked-on fees for in-demand vehicles. Regardless, it’s certainly refreshing for consumers that the company is taking some sort of action to combat this behavior, which has run rampant since the onset of the pandemic.
Photos: Chevrolet
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