Soon, the Corvette Z06 and Cadillac Lyriq will be available.
This is not the best time to purchase a new car. Limited supply chains and parts shortages have led to increased prices and reduced inventories. Dealers are profiting from the shortage of parts and tight supply chains by increasing prices or engaging in unsavory sales practices. General Motors is planning some major launches – Corvette Z06 and Silverado EEV. The company is trying to limit these tactics before their launches. Corvette Action Center published a letter by Steve Carlisle (GM’s North American president), reminding the dealers of their obligations to sell GM cars. According to the letter, it stated that a small number of dealers were engaging in practices that did not promote a positive customer experience. Motor1.com contacted GM for confirmation. When we receive back, we will update the story. GM has received information from dealers asking for reservations deposits that are higher than GM’s program guidelines. Some dealers have requested that customers pay exorbitant markups above the vehicle’s MSRP. The letter reminds dealers of their obligations in selling GM vehicles. It draws straight from the Dealer Sales and Service Agreement lines, such as, “Dealer agrees to ethically and lawfully sell and encourage the purchase, lease and use of Products [sic]”
The letter ends with GM noting it will take action if it discovers “any unethical selling practices or brokering activities.” This sounds very alarming. Ford made similar threats to its dealers about vehicle allocation. The Blue Oval also sees a few dealers taking advantage of the current market. Industry issues such as price markups and unfriendly practices will continue to be a problem in the months ahead, particularly for highly sought-after models like the Corvette Z06, and others. Corvette Action Center has the complete letter.