This is not a good time to buy a new car. Limited supply chain and shortage of parts are driving up prices and limited stocks. Some retailers take advantage of this by extorting prices or indulging in other unpleasant selling practices. General Motors has several major launches upcoming: Corvette Z06, Silverard EV, Cadillac Lyric, and the company is looking to limit that strategy ahead of launch.
Corvette Action Center GM’s first letter to North American President Steve Carlyle reminded the dealer team of their obligation to sell GM cars. The letter states that “some retailers” have “engaged in practices that do not support a positive sales experience for our customers.” Motor1.com I contacted GM to confirm the authenticity of the letter and other details. We will update this story as soon as we have an answer.
GM says it has learned that some retailers require booking deposits in excess of GM’s program rules. Others ask customers to pay an exorbitant increase in the vehicle’s suggested retail price (manufacturer recommended). The letter reminds dealers of their obligations in the sale of GM vehicles and is drawn directly from the following lines of dealerships’ sales and service agreements: [sic] from the consumer. ,
The letter ends by saying that it will take action if GM becomes aware of “unethical sales practices or intermediation”. Such action involves redirecting the vehicle assignment or “other means” to a GM dealer, which seems creepy. The Ford Blue Oval has a small number of dealerships, so it poses a similar threat to dealership allocation of vehicles. Use current market conditions.
Rising prices and other hostile behavior are an industry problem and could remain a nuisance for the next few months, especially on a highly desirable model like the Corvette Z06. Read the full letter to the Corvette Action Center.