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Originally Posted by Number 3
If the Gen6 is bare bones for creature comforts, it will be the biggest failure of 2016. The crappiest Kia now sets the bar for what you can expect in a car. Bare bones doesn't cut it anymore.
Also keep in mind for allll these creature comforts, the weight difference between a 1SS and 2SS is only about 40 pounds. Leather and a bunch of wires and controllers don't weigh that much.
You are right on the basics, the more you can produce the lower the piece price. But GM's model is farrrr more complex than that. If your model held true you could just price the Corvette at $25,000 and you would sell a crap load of them and make even MORE money. It doesn't quite work out like that. There is a lot more too it than that.
Yes, by selecting Alpha and likely putting the 2.0T as the base engine now, they will likely hold the base price. But don't confuse that with now adding additional premium materials and still holding price simply because the low volume Camaro also has some of those parts. Just because the ATS and CTS aren't selling, don't lose sight of the fact they were supposed to sell much better. I would expect GM at one point hoped the ATS would far outsell the Camaro.
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If they could build a Corvette for $20K, they would happily sell a crap load of them for $25K each. But as it is, they will be able to build a Camaro for around that, and they will sell a crap load of them. Thus they can price them out closer to the margin and still make a tidy profit. Of course, the more options, the greater the margin.
I don't know if they'll sell the base model for $22 in '16. Probably more like $24. But they will be able to keep the prospective models within the market range and demographic the car currently resides. Even with all of the upgrades to the Corvette in '14, it still listed within a couple of grand of the outgoing generation, the Camaro will be no different.