Morgan Stanley’s Adam Jonas claims a dedicated Corvette sub-brand could eventually generate sales of more than 100,000 vehicles annually and be worth $7 to $12 billion.
Jonas, a prominent auto industry analyst, envisions the theoretical Corvette sub-brand offering a variety of models, with the mid-engine C8 Corvette serving as the brand’s centerpiece. An electric Corvette SUV would eventually join the range as well, while a higher-end Corvette supercar with a price tag of over $150,000 could act as a halo product. These new models would attract new types of buyers to the brand, he believes.
“In essence, we think the Corvette brand is undervalued and under-appreciated by the market,” Jonas said.
Morgan Stanley believes the Corvette brand is already worth around $2 billion on its own – a significant valuation for what is currently only one single Chevrolet product.
With the introduction of the C8 Corvette, the topic of a Corvette SUV has been swirling in the media. GM CEO Mary Barra wouldn’t rule out such an offering when asked about it during the automaker’s Q3 earnings call, simply saying that she appreciates that analysts “think our Corvette franchise is very strong.” During the same call, Barra also said that GM will “look at a variety of things as we go forward and we recognize the strength of the Corvette brand.”
Autoblog approached GM for comment on the Morgan Stanley report, but as expected, it didn’t want to talk about future product plans.
“We appreciate everyone’s excitement about this iconic brand, but we will not engage in the speculation,” a spokesman the publication, essentially reiterating what Barra said earlier this year.
Other GM executives have not denied the possibility of a Corvette SUV, but also appeared to not want to talk about the matter. Chevrolet’s vice president for performance vehicles and motorsports, Jim Campbell, said he “can’t say anything one way or the other” when asked about the matter at the debut of the Corvette C8, while GM president Mark Reuss previously told reports that we are “probably not going to see that.”
Other sports-car brands are expanding their lineups in an attempt to win over new buyers, with Lamborghini introducing the Urus SUV last year and Ferrari also plotting its own utility vehicle for release in the near future.
SOURCE: GM Authority