How Saving the C7 Corvette Helped Rescue GM from Destruction

Chevy killed the C7 Corvette in its darkest hour. But the Corvette not only survived, but helped save all of General Motors.

The C7 Corvette was dead. No one knew how long the C6 would last. With the global economy in freefall, GM’s stock price cratered. Losses continued to mount as GM declared bankruptcy and begged for a bailout. They killed off Pontiac and Saturn. At the time, Bob Lutz was the vice chairman of GM and head of product development. A “car guy’s car guy,” Lutz had to choose between a new full-size truck platform or the next Corvette.

He chose the truck.

Corvette’s chief engineer, Tom Wallace retired, leaving Tadge Juechter in charge. Cut from the same cloth as Zora Arkus-Duntov, Juechter was also developing a mid-engine prototype. He and his team kept working to save the Corvette. At one point they even put a phone list together and a plan to raise capital. If GM scrapped the Bowling Green plant, they had a team ready to buy it and keep the doors open.

In 2009, Juechter joined the task force created to restructure GM and take it through bankruptcy. At a joint meeting between GM executives and the U.S. Treasury Department, he introduced himself as the Corvette’s chief engineer. Immediately he was asked about the Corvette and the status of the C7. It turned out the Treasury Department and its independent consultants had reviewed Corvette’s finances and knew it was profitable. Recognizing the value of the brand, they spared both the Corvette and the Bowling Green assembly plant.

The Corvette team continued to improve the C6, but there were no plans on the horizon for the C7. It wasn’t until Fritz Henderson took over as GM’s CEO that things began to change. As Henderson met with investors and the media, one question kept coming up. “When will we see a new Corvette?”

Henderson reached out to Juechter who informed him that there were no plans for a new Corvette. Shortly afterward GM leadership greenlit the C7. Knowing they didn’t have the resources for a mid-engine car, the Corvette team set to work on building the best car with what they had. The result speaks for itself. The C7 was a giant step forward in performance and refinement. Chevrolet had the audacity to revive the hallowed Stingray name and then backed it up with a world-class car.

Approaching its 70th year, the Corvette has faced extinction at least three times. Each time, a passionate team of enthusiasts scraped together GM’s couch money and kept America’s Sports Car alive. It’s ironic that the last time GM chose to kill the Corvette it was a matter of survival. Because symbolically, the Corvette showed that GM was worth saving.

Photos: General Motors