GM may expand Corvette lineup to include a crossover SUV

A mid-engine 2020 Chevrolet Corvette on the bottom of the Los Angeles Auto Show conceal on Nov. 21, 2019.

Michael Wayland / CNBC

DETROIT – Long-established Motors is evaluating whether to make bigger its Corvette lineup – currently a two-seat sports actions automobile – so that you just would possibly well add its first-ever crossover or SUV, a particular person accustomed to the discussions confirmed to CNBC.

Expanding one among GM’s most-prized nameplates to a assorted physique fashion, if now not a family of gadgets, has been an on-again, off-again discussion in the center of the Detroit automaker for some time. In gradual 2019, Morgan Stanley analyst Adam Jonas talked about a Corvette sub-ticket would possibly well well be price $7 billion to $12 billion for the automaker.

Bloomberg reported Thursday afternoon that GM has designers working on quite loads of Corvette-ticket principle vehicles that center of attention on a mighty wider differ of merchants, seemingly as an all-electrical crossover SUV as early as 2025.

A source accustomed to Corvette’s operations, who requested now not to be named because the plans are now not public, confirmed to CNBC that GM is discussing this kind of variety nonetheless confused out nothing has been finalized and same discussions earlier than occupy now not resulted in any new merchandise.

A GM spokesman declined to comment.

If GM decides to make bigger Corvette to a crossover SUV, it would possibly probably likely seemingly be electrical, analysts reveal. The firm has committed to launching 30 new EVs by 2025 under a $27 billion notion to procedure electrical and self reliant vehicles in the center of that point interval. The next-generation EVs shall be underpinned and powered by GM’s new Ultium battery cells and platform, which the automaker spotlighted earlier this week in the center of the CES expertise convention.

“The Ultium platform will allow Chevrolet to extra make bigger its differ of electrical vehicles to elephantine-size pickup trucks, compact crossovers and even excessive-performance vehicles,” Michael Simcoe, GM’s vp of world raze, talked about in the center of a Tuesday presentation for CES, which was once streamed online this year.

The supreme hesitation in increasing the Corvette line up to now has been the likelihood of diluting the ticket and diminishing the standing of the sports actions automobile, which launched in 1953. But GM just just lately radically redesigned the auto from a front-engine to mid-engine structure to superb fanfare. And such thinking has been debunked in fresh years as consumer inquire of has moved away from automobiles to crossovers and SUVs.

Exterior of the 2019 Lamborghini Urus with a rotten retail ticket starting at $200,000.

Adam Jeffery | CNBC

Quite loads of performance and luxury automobile brands corresponding to Lamborghini, Maserati, Bentley and Aston Martin occupy all grown their brands by adding crossovers or SUVs. Porsche, which launched its first non-sports actions automobile virtually 20 years up to now, now sells more crossovers yearly than its outmoded sports actions automobiles.

GM’s supreme crosstown rival, Ford Motor, also expanded its Mustang lineup with a new all-electrical crossover final year known as the Mustang Mach-E, which has largely acquired fine reviews from critics.

In 2019, Morgan Stanley’s Jonas talked about Corvette was once “undervalued and underappreciated by the market” in a uncover to investors. An expansion, he talked about, would possibly well abet in funding the automaker’s pivot to all-electrical vehicles.

When Jonas introduced up a Corvette SUV to GM CEO Mary Barra in 2019, she did not assassinate the root: “Well, I worship that you just judge our Corvette franchise is highly solid. I’m now not going to focus on about future,” she talked about in the center of a quarterly earnings name in October.

Barra later added that GM would look “at a unfold of things as we switch forward. She talked about that the firm acknowledges “the strength of the Corvette ticket.”