Even today, the Corvette brand is worth about $2 billion.
Rumors of General Motors turning the Corvette into a standalone sub-brand have been swirling around for years. Each time a new generation of the supercar is about to debut, we hear new speculations but this time around, chances seem higher than ever that this move could actually happen. And if GM indeed expands the Corvette from a single model to a sub-brand, this could generate huge sales for the automaker, if we are to believe a recent analysis.
Morgan Stanley’s Adam Jonas, an experienced auto industry analyst, says the Corvette brand is already worth about $2 billion – without even being a sub-brand but still a single Chevrolet model. If GM decides to spin the Corvette nameplate off into its own sub-brand, it could grow to be worth between $7 and $12 billion and generate more than 100,000 annual sales.
“In essence, we think the Corvette brand is undervalued and under-appreciated by the market,” Jonas told GM Authority.
The analyst envisions the Corvette brand with a range of different models, including the rumored Corvette electric SUV as the cash-cow of the lineup. The mid-engine Corvette C8 will preserve its current role, while a flagship Corvette supercar priced above $150,000 could be launched as a halo product of the new sub-brand.
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To further fuel the rumors of a Corvette SUV, GM CEO Marry Barra recently declared that the automaker will “look at a variety of things as we go forward and we recognize the strength of the Corvette brand” while speaking during GM’s Q3 earnings call. She didn’t rule out a high-riding Corvette-branded model and simply added that she appreciates that analysts “think our Corvette franchise is very strong.”