General Motor Co.’s (NYSE: GM) Chevy division launched its new Corvette, the crown jewel of its lineup. It joins several other U.S. super sports cars that almost no one will buy and that will not cause other people to buy other cars and light trucks sold by Chevy.
Chevy debuted the new Corvette at the Dubai International Motor Show with as much public relations as it could muster:
The King is returning, stronger than ever.
Chevrolet today introduced the 2019 Corvette ZR1, a supercar that pushes Corvette’s performance legacy with the highest power, greatest track performance and most advanced technology in its production history.
Even GM management was stunned by the car’s performance. Mark Reuss, executive vice president, Global Product Development, Purchasing and Supply Chain, said:
I’ve never driven a Corvette like this before, and nobody else has either, because there’s never been one like this before. Its unprecedented performance puts all other global supercars on notice that the ZR1 is back.
Reuss probably has not driven Fiat Chrysler Automobiles N.V.’s (NYSE: FCAU) Dodge SRT Hellcat, which has a 707-horsepower engine. It sells for $64,195. The new Corvette’s price will probably be over $80,000
Ford Motor Co. (NYSE: F) has a superfast car of its own. The Mustang Shelby GT350 has a 526-horsepower engine, which Ford says is its most powerful, naturally aspirated production engine “ever.”
The list of fast supercars also includes vehicles from most Japanese and all German manufacturers.
Car executives have believed for a long time that cars that run from zero to 60 in under four seconds, and in some cases under three, are a magnet for people who come to dealers and settle for four-cylinder, four-door sedans that have prices below $30,000. It is a theory without proof, but one manufacturers hope is true.
If it isn’t true, these car companies have spent a great deal on R&D and promotion to build models that a couple of thousand people might buy. That is, however, the only value they have.