Chevrolet Is Already Cracking Down on Price Gouging for the New Corvette Z06
The automaker’s parent company, General Motors , recently sent a memo to dealerships explicitly warning them not to charge outrageous markups for the in-demand C8, according to the Corvette Action Center . The Detroit giant also said there would be consequences for dealers caught trying to pull a fast one.
In the notice, which is signed by GM North America President Steve Carlisle, the automaker states that it has become aware of dealers having “engaged in practices that do not support a positive sales experience for our customers.” The memo goes on to outline what is and isn’t allowed, and warns that “bad actors” caught violating these rules could see their C8 allocation redirected to other dealerships or “other recourse.”
The memo calls for an end to three specific tactics. The first is charging more than $1,000 to reserve a new Z06 (some dealers have asked for twice that ). Also forbidden is selling to brokers who are willing to pay more money up front, something that is explicitly outlawed in GM’s dealership service agreement. Finally, the automaker wants dealers to stop charging outrageous markups, or “market adjustments,” for the car.
While it is good to hear that GM and Chevy are trying to put a stop to this kind of behavior, these aren’t new issues. Certain dealerships have allegedly engaged in these sorts of shenanigans since the C8 was first announced in the summer of 2019, according to AutoEvolution . Why is the automaker finally addressing this behavior now? GM might be choosing to act now before orders for the 2023 model year—when the eagerly anticipated Z06 is slated to debut—open in the spring.A representative for GM did not immediately respond to a request for comment from Robb Report .
It should be noted that this sort of behavior isn’t just a GM problem. Earlier this month, Ford tackled similar issues in a memo sent to its dealership network. In the email, the automaker said that those caught asking for additional deposits and payments for the upcoming F-150 Lightning could see their allocations of the all-electric truck redirected to others dealerships.