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New Vette hits the street
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March 6, 1997: 9:27 p.m. ET
Chevrolet bets showroom traffic will pick up with model's release
From Correspondent Jody Davis
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NEW YORK (CNNfn) - Chevrolet is betting customer traffic in its showrooms will pick up dramatically Friday when the automaker takes the wraps off its latest version of the Corvette, America's most storied sportscar.
The 1997 Chevrolet Corvette marks the first redesign of the car in 13 years. And it almost didn't happen.
The project was shelved following the 1992 boardroom revolt at General Motors. Two years later, GM Chairman Jack Smith finally gave it his blessing. The result, according to most who follow the industry, is one impressive sportscar.
"It's an example of the best GM can do. The car costs less money to make than the old one. It's faster, handles better, has far better quality and is much more user friendly," said John Casesa, auto industry analyst at Shroeder Wertheim.
Analysts and automotive journalists say the new version keeps what's good about the old Corvette while eliminating the noise, vibration and harsh ride.
GM is expected to sell every one of the 20,000 Corvettes it plans to make this year. Mark Leddy of the Chevrolet Motor Division said customers who want one may have to look around because only 402 Chevrolet dealers will get them. (127K WAV) or (127K AIFF)
GM says it has cut the cost of producing each Corvette by almost $1,600 while maintaining a sticker price of about $38,000.
That makes the gross profit per vehicle about $4,500, or 14 percent. That's the kind of earnings GM makes from sports utility vehicles, it's most profitable segment.
Michael Ward, auto analyst for PaineWebber, said the new 'Vette means much more than more money for GM.
"I think it's a critical product from an image standpoint. It's a very competitive segment and I think it's GM's chance to show that they can build a world-class sportscar," he said.
The new Corvette also is intended to draw even non-sportscar fans into the showroom. For GM, whose total sales are down more than 4 percent so far this year, more cars driving off the lot would be a welcome sight.
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