GM Warned
GM Reportedly Warns Dealers Against Marking Up Corvette Z06, GMC Hummer EV And Cadillac Lyriq
BY Michael Gauthier | Posted on January 18, 2022 14
Dealership markups have always existed, but they’ve flourished recently thanks to the chip crisis and coronavirus pandemic.
As a result, it hasn’t been uncommon to see new vehicles with six-figure market adjustments. Automakers are well aware of the issue and the anger it creates.
The latest company to address this is General Motors as the Corvette Action Center has reportedly obtained a message GM North America President Steve Carlisle sent to dealers. It reads, “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” but “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.”
Also Read: Chevy Corvette Markups Are Still Here, Rise To Almost $100,000!
Carlisle goes on to say this “puts our collective interests at risk and generates negative press that reflect poorly on GM’s brands and your dealerships.” That’s putting it mildly as we’ve covered numerous markups over the years and the countless number of forums that exist today can spring into action and hammer offending dealerships with one star reviews.
Since name shaming might not be enough to dissuade some dealerships, Carlisle reportedly reminded them that “GM dealers are obligated to ethically and lawfully sell GM Products, as stated in Article 5 of the Dealer Sales and Service Agreement.” He allegedly added, “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.”
The purported message goes onto threaten that “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.” This could mean offending dealers see their allocation of highly anticipated vehicles cut or are subjected to a “recourse prescribed by the Dealer Sales and Service Agreement.”
Assuming the letter is legitimate, it’s a positive development and one that will likely improve the company’s relationship with customers. Of course, actions speak louder than words and we likely won’t know how effective the threats are until these upcoming models arrive in showrooms.
H/T to Corvette Blogger
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Another article I read on the Corvette Blogger stated they would send the new cars to other dealers should the dealer who originally received them gouges .. puts an up charge on any vehicles. Ford even is making the new F150 electric lightning truck buyers sign 1 yr agreements not to resell the trucks. Ridiculous .
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Greed is part of the problem and not being able to produce enough vehicles because of things like chip shortages is another part. If a dealer can only get and sell a small percentage of the vehicles he normally gets, his profits must cover the costs of the business. If he normally sold a hundred vehicles a month and now can only get 25, those 25 have to cover his expenses. Kind of similar to the firearm and ammo dealers for the past couple of years. It sucks, but until production can meet demand we are stuck with it. Bob
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Really does not effect me. GM screwed me on my 2013 Silverado with rust problem and my Chevy dealer tried to make it up to me and gave me great deal on 2015 Silverado. In 2020 you could not buy a Silverado with a light interior except overpriced Hi-Country. Bought a new Ram Laramie Longhorn Loaded Hi End. Two years Zero problems. Still go back to my Chevy Dealer with my Ram. He is a nice guy, not a crook. Good bye GM.---------------------Ray
PS: And I was a Chevy Truck guy every 4/5 years for over 50 years.
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BobJudy: 30528865919899/comments/30528852080667
Greed is part of the problem and not being able to produce enough vehicles because of things like chip shortages is another part. If a dealer can only get and sell a small percentage of the vehicles he normally gets, his profits must cover the costs of the business. If he normally sold a hundred vehicles a month and now can only get 25, those 25 have to cover his expenses. Kind of similar to the firearm and ammo dealers for the past couple of years. It sucks, but until production can meet demand we are stuck with it. Bob
That will not worky. GM will send the cars to other dealers if the orginal dealer price the vehicles higher than the suggested retail. Dealers pay well below the retail
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select-fire: 30528865919899/comments/30528855114779
https://forums.gunbroker.com/discussion/comment/11318987#Comment_11318987
That will not worky. GM will send the cars to other dealers if the orginal dealer price the vehicles higher than the suggested retail. Dealers pay well below the retail
Yeah , I understand that, but they are penalizing the dealers for their own manufacturing shortfalls. Put the dealers out of business and create a demand for their online sales program that is on the horizon. Bob
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select-fire: 30528865919899/comments/30528865942427
Another article I read on the Corvette Blogger stated they would send the new cars to other dealers should the dealer who originally received them gouges .. puts an up charge on any vehicles. Ford even is making the new F150 electric lightning truck buyers sign 1 yr agreements not to resell the trucks. Ridiculous .
I have heard about the 1 year resell agreement.
I have a question. What if the buyer breaks the agreement?
I can only imagine the possibilities - and all of them are comical.
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Ford went after a few folks that marketed the Ford GT40's after signing an agreement. Not right to have to hold a vehicle if a hardship came up or whatever. When I purchase something it is mine to do as I want.
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It's all PR related trying to get people to buy by putting out this kind of propaganda, all these motor companies are worried about is the number of vehicles rolling out the door. They don't bust the butts trying to cover warranties either even when "they're" under contract to do so.
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It is all about sales. Customers are not spending the x tra markup to buy the new cars.
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As long as people put with BS it will be there. Be like me. I wouldn't pay MSRP for a new car much less a premium, I don't care what the market is.
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SCOUT5: 30528865919899/comments/30528841362075
As long as people put with BS it will be there. Be like me. I wouldn't pay MSRP for a new car much less a premium, I don't care what the market is.
Yep, was asked to pay three grand over msrp on a vehicle a couple of weeks ago. Told him i would write him a check for msrp even though I hated to. Said they couldn't sell it that cheap. Still driving the old one and will be for some time looks like.
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Seems if everyone just quit buying new cars for just one year, the auto makers\dealers would fold on their price gouging tactics.
I have gone my entire life only ever buying just one brand new vehicle. The used market has always been my playground. It is not a hard choice to make and would not even be considered an inconvenience to 99% of the driving population.
Unless you are filthy rich and spoiled!
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GM doesn't believe in a free market. Just another reason I won't be buying GM in the future.
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I cannot wait to see the new Z-06 in person.
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I didn't see anything on the list that I'd drive home even if it was FREE so I don't have to worry.
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Not only GM. Furd stealership near here is marking their trucks up at least 7 to 10,000.00 above MSRP and that info came from one of their trusted employees.
My two cents, don't blame the price gougers, ammo gougers to, blame those who pay the ridiculous prices.
Supply and demand. don't buy it, price comes down, buy it price goes up.
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