Do you want a ZL1 automatic transmission option?

[Arachnyd]

I have to throw out a quick business lesson. I've seen way too many notes on here saying "GMs job is to make money, more options = more sales, more sales = more money", and thats far from the truth.

If that were the truth, then every car would come in 20 million different configurations. More options don't actually translate into more profits.

Say for example the profit margin on a car was $1000. Introducing the automatic transmission but maintaining what they have established as the price point would lower the profit margin to $750. Now they have to sell 25% more cars to make the same amount of money they would have if they did not introduce the automatic.

If the company would then sell 20% more cars by introducing the automatics, they would actually be at a disadvantage from offering the automatics. (if anyone mentions something about fixed vs. variable costs, I'm simplifying the model slightly for this usage...)

Its important to point that out because the world of cost-based pricing disappeared years ago. You can't charge based on what something costs to produce- instead you charge based on the value provided to the consumer. Therefore its not as simple as "passing on the cost to the automatic consumers".

One last, and more complex concept, is the idea of flagships. By offering a "ultra-high performance option", often car companies LOSE money on that specific product (or profit ever so slightly), however, the impact of having that "superior" car helps boost the sales of the lower models which are more profitable. For example, They could theoretically sell a Z28 Version (I know ZL1 is what they are coming out with) that SMOKES the Ford GT500. Even if they only sell enough to break even, they will be improving future camaro sales by getting the edge in the muscle car battle. (not saying this is the strategy being used, just something else to think about). Using this model, you'd also prefer the car to be in the hands of true enthusiasts for people to oogle over.

I guess what it comes down to is we, as camaro owners, do not have nearly enough information to even SUGGEST what the smart move is for GM. We can tell them if we are interested or not, and they will crunch some numbers and try to determine if it fits into their goals to offer it or not. It's not as simple as "more options = more money".

[H.Adams]

1,013 votes yes...wheres is the answer?! x)

[zebra]

no auto!

[Blue Menace]

Let's just pause a moment and take stock. Three days ago this poll was under 800 total votes. Since that time, the number (and debate) has skyrocketed. However, the one thing that has remained constant is the 2/3 vote FOR an auto option. Regardless of who will actually purchase one if made available, it has been made abundantly clear to all those willing to look that MOST folks want an auto as an option. Lovely.

[DevilKnightFalcon]

Originally Posted by Blue Menace

Let's just pause a moment and take stock. Three days ago this poll was under 800 total votes. Since that time, the number (and debate) has skyrocketed. However, the one thing that has remained constant is the 2/3 vote FOR an auto option. Regardless of who will actually purchase one if made available, it has been made abundantly clear to all those willing to look that MOST folks want an auto as an option. Lovely.

I have to admit that I am extremely surprised that the auto has maintained it's ground at 65% even with the massive surge of votes all of a sudden.

[PQ]

Originally Posted by BumblebeeAmigo

I have to throw out a quick business lesson. I've seen way too many notes on here saying "GMs job is to make money, more options = more sales, more sales = more money", and thats far from the truth.

If that were the truth, then every car would come in 20 million different configurations. More options don't actually translate into more profits.

Say for example the profit margin on a car was $1000. Introducing the automatic transmission but maintaining what they have established as the price point would lower the profit margin to $750. Now they have to sell 25% more cars to make the same amount of money they would have if they did not introduce the automatic.

If the company would then sell 20% more cars by introducing the automatics, they would actually be at a disadvantage from offering the automatics. (if anyone mentions something about fixed vs. variable costs, I'm simplifying the model slightly for this usage...)

Its important to point that out because the world of cost-based pricing disappeared years ago. You can't charge based on what something costs to produce- instead you charge based on the value provided to the consumer. Therefore its not as simple as "passing on the cost to the automatic consumers".

One last, and more complex concept, is the idea of flagships. By offering a "ultra-high performance option", often car companies LOSE money on that specific product (or profit ever so slightly), however, the impact of having that "superior" car helps boost the sales of the lower models which are more profitable. For example, They could theoretically sell a Z28 Version (I know ZL1 is what they are coming out with) that SMOKES the Ford GT500. Even if they only sell enough to break even, they will be improving future camaro sales by getting the edge in the muscle car battle. (not saying this is the strategy being used, just something else to think about). Using this model, you'd also prefer the car to be in the hands of true enthusiasts for people to oogle over.

I guess what it comes down to is we, as camaro owners, do not have nearly enough information to even SUGGEST what the smart move is for GM. We can tell them if we are interested or not, and they will crunch some numbers and try to determine if it fits into their goals to offer it or not. It's not as simple as "more options = more money".

And, like has previously been stated, a good number of the auto guys would still by the ZL1 in a manual if there were no auto available.

And I'd absolutely agree with you if it weren't said already that they'd make as many ZL1s as they can sell. IF it were deemed that a significant number of sales would be lost by not offering an auto tranny, then it would be a contradiction. However, then you have to inject into the equasion the fact that, like you mentioned, the ZL1 would also be essentialy an advertisement and allure for people to buy the lower models. PLUS, there are many who would just buy an SS for the auto tranny and supercharge it or whatever, so Chevrolet and the Camaro will still keep them in the family. Other than a few bells and whistles, a Camaro SS with aftermarket FI and espec. other mods, is more powerful than a stock ZL1. Even suspension wise.

Sooooo many variables. You can['t be just a good businessman. You have to have the studies and facts. Which we just don't have.

BUT what we do have is the words of some inside GM. They lead us to believe that, with enough interest, they would consider offering it. Could be more clever play words to gain interest. Who knows. But taken at face value, we've been told that they'd consider it if the interest were there. (Ok, fine, we weren't 'Told' that, but we were definitely led to believe)

[Blue Menace]

Originally Posted by DevilKnightFalcon

I have to admit that I am extremely surprised that the auto has maintained it's ground at 65% even with the massive surge of votes all of a sudden.

Really? Well, I'm glad it did. And it's been fun being a part of this thread since it's inception....very interesting, huh?

[DevilKnightFalcon]

Originally Posted by Blue Menace

Really? Well, I'm glad it did. And it's been fun being a part of this thread since it's inception....very interesting, huh?

Ya definitely. Now I just really hope that GM holds up their end of the bargain and gives us an announcement or i'm gonna look like a real idiot lol.

[SIXJAK]

Yes because in a few years when it comes time to upgrade the current stable of Camaros, if there is an auto option it'll increase the likelihood that my company will purchase 6 new ZL1's. Without an auto option, it won't even be a consideration. That said mine will definitely be a 6MT.

[billyp93]

any word yet

[Baltimorejohn1]

Heck yes I want an automatic with paddle shifts or touch shifts..... the fastest cars in the world all have paddle shift technology.....

[Baltimorejohn1]

Heck yes I want an automatic with paddle shifts or touch shifts..... the fastest cars in the world all have paddle shift technology.....

[Schlok]

You want an awesome transmission with paddle shift that's super quick between gears? Ok, now the car's price just went up another 10k to put in such a transmission, look at the GT-R, a transmission in that car is something like 20k....

[FaTiM 224]

I saw this pic online when they were still testing the zl1, that is an automatic transmission in the test car, does this mean we might see an auto in the actual product.