"GM Halts Chevy Volt Production Because Sales Suck"

[ghosthunter]

GM Halts Chevy Volt Production Because Sales Suck



General Motors has told 1,300 employees at the automaker's Detroit Hamtramck plant they will be temporarily laid off for five weeks as the company halts production of the Chevrolet Volt and its European counterpart, the Opel Ampera.

"Even with sales up in February over January, we are still seeking to align our production with demand," said GM spokesman Chris Lee to the Detroit Free Press. Another way of phrasing that? Because sales still suck.

Lee said employees were told Thursday that production would put on hold from March 19 to April 23.

Chevrolet sold 1,023 Volts in the U.S. in February and has sold 1,626 so far this year.

SOURCE: http://jalopnik.com/5890072/gm-halts...use-sales-suck

[uls]

i posted this yesterday:

http://tsikot.com/forums/philippine-...57/index2.html

this is what happens when you force something whose time has not yet come

electric cars are being pushed by environmentalists

the Obama admin (liberal, right-wing) pushed GM to make electric cars

it's ideology-driven

GM to Idle Volt Production for Five Weeks - WSJ.com

General Motors Co. will idle production of its Chevrolet Volt battery-powered car for five weeks beginning this month because of slow sales amid an effort to boost the vehicle's consumer appeal, the company said Friday.

Launched last year with great fanfare, the Volt has had a rocky start as sales stalled, and the car became a lightning rod for critics of the Obama administration's auto-industry bailout and support for alternative energy.

GM said around 1,300 workers at the Hamtramck, Mich., factory where the Volt is built will be out of work between March 19 and April 23, a spokesman said. The plant had just resumed production on Feb. 6 after a prolonged holiday shutdown.

don't push it

let the demand happen by itself

[niky]

And last year, they had trouble meeting demand.

On a car this expensive and tech-heavy, it's likely GM's profit margins are incredibly marginal. Looking through the data, it's likely that GM Chevrolet only makes about $1,000 per car sold. And that's not including dealer incentives or R&D costs.

That's better than with the EV1, which lost GM about $100,00 per car, but such marginal margins mean that the Volt won't be able to pay back the R&D costs, and won't be able to fund R&D for its successor.

And it means that GM can't build up a huge inventory of Volts hoping to eventually sell them (automakers are usually okay with build a few hundred more than they can sell, because margins on gasoline cars are so high... which means that even if GM is selling the Volt steadily, they can't keep up production without having a supply glut.

[Mguy]

I think the Volt's time is now. Consumers are just too hard headed to convert to a new kind of technology. At today's prices of gasoline, I would buy me one of these if it was locally available and affordable.

[Ry_Tower]

I think the Volt's time is now. Consumers are just too hard headed to convert to a new kind of technology. At today's prices of gasoline, I would buy me one of these if it was locally available and affordable.

Just liek the prius, it is not affordable kasi talaga esp with our tax on imported cars.

[uls]

^^^

What’s ailing the Chevy Volt? - The Washington Post

A more likely explanation is that the Volt is just far too expensive for many customers. The car gets about 94 miles per gallon, according to the EPA, but it starts at $39,195, and only upper-income buyers with a big tax bill can qualify for the $7,500 federal tax credit. As auto blogger Jonathan Welsh writes, “Even if you never used gasoline in the Volt, you’d wait about 12 years before you saved enough on gas to make up for the Volt’s price premium.” (The Volt has a gas engine that kicks in when the battery runs out.)

Indeed, plenty of analysts have pointed out that the Volt is essentially a hybrid version of the Chevy Cruze, a compact car that gets around 40 miles per gallon but costs just half as much. And sales of the Cruze have been booming. Fuel-efficient cars are doing well in this age of high pump prices. It’s just that, when consumers do the math on how much they’re likely to save on gasoline, the Volt doesn’t seem to add up. (Granted, this calculus depends on quite a few variables. If, say, gas started climbing above $4 per gallon and a person drives 15,000 to 20,000 miles per year, suddenly the Volt would look like a better deal in comparison.)

Chevy Volt: Why Isn't it Selling Well? - Driver's Seat - WSJ

So why aren’t they selling? There are two answers: price and hassle.

The Volt starts at about $40,000, or twice as much as the company’s high-mileage Cruze Eco compact sedan. When it comes to curbing consumption, people like to feel they are saving money while saving the earth. If green technology costs more, consumers want to “break even” on overall savings within a reasonable period. Even if you never used gasoline in the Volt, you’d wait about 12 years before you saved enough on gas to make up for the Volt’s price premium.

The Cruze can also go 40 miles on a gallon of gas reliably while the Volt’s battery performance varies with weather and driving conditions and remains mysterious to many consumers. Plugging in to charge up seems simple enough, but can also be one more chore drivers choose to avoid.

So even though gasoline prices have been high since last spring and markets for many “green” products are taking off, electric and plug-in cars won’t follow until they can compete more evenly on price and practicality.

[uls]

And last year, they had trouble meeting demand.

On a car this expensive and tech-heavy, it's likely GM's profit margins are incredibly marginal. Looking through the data, it's likely that GM Chevrolet only makes about $1,000 per car sold. And that's not including dealer incentives or R&D costs.

That's better than with the EV1, which lost GM about $100,00 per car, but such marginal margins mean that the Volt won't be able to pay back the R&D costs, and won't be able to fund R&D for its successor.

And it means that GM can't build up a huge inventory of Volts hoping to eventually sell them (automakers are usually okay with build a few hundred more than they can sell, because margins on gasoline cars are so high... which means that even if GM is selling the Volt steadily, they can't keep up production without having a supply glut.

at sa lagay na yan...

Chevrolet Volt Tax Incentives and Rebates | MyChevroletVolt.com

To incentivize the adoption of Electric Vehicles like the Volt, the Federal Government as well as many state governments have programs in place to subsidize the high cost of an electric car like the Volt. In this article, I will discuss in detail eligibility for federal and California subsidies. In addition, depending on your electric utility, you can apply for reduced Electricity Rates during off hours for electric car charging. Feel free to jump in if you know more about your state!

If you are thinking about buying a Chevrolet Volt, your eligibility for the $7500 Federal rebate, as well as a potential $5000 California Rebate will surely have a significant impact on your purchasing decision. Combined this is as much at $12,500 in government incentives on a car that many expect will MSRP for over $40,000. These rebate programs however are not unlimited in their funding.

Federal Rebate Program

First, we’ll look at the Federal Rebate program. For full details you can visit the federal energy tax credit site for electric vehicles. But I have condensed and summarized the important points below.

The First 200,000 Chevrolet Volt’s qualify for $7500 in federal tax credits (After which there is a phase out schedule). Given the production volume, if you buy in the first couple of years you’ll be good.

This credit can be claimed on your tax refund. (If you manage to buy the car in 2010 – and do your taxes early without extension, this would be fastest way to get the federal credit)

[uls]

I think the Volt's time is now. Consumers are just too hard headed to convert to a new kind of technology. At today's prices of gasoline, I would buy me one of these if it was locally available and affordable.

well, the Prius is available locally

you can buy that

you planning?

[niky]

The Prius C is around 1.475m. That's for the same space as a pre-Altis Corolla or the current Honda Fit (but slightly bigger than the Fit).

So, it's an 800k car with about 675k added for the hybrid system.

The Chevrolet Volt is a $41k car. Chevy's other $40k cars cost about 3m here.. With tax breaks, expect the Volt to be at 2.5m.

This is why TCCCi doesn't bring it in. Would you pay 2.5m for a car with the same utility and space as a Cruze? (The Volt is basically a Cruze hybrid). Perhaps you would if the badge said "Lexus" or "Cadillac", but not if the badge said "Chevrolet"... not unless GM sells it as an upmarket car like the Corvette.

[uls]

people who are environmentally conscious may buy green household products that cost a bit more than regular products

but when it comes to big ticket items people don't let their environmentalist ideology take over rational decision-making

i don't care how green you are... if you're choosing between a regular car that costs half that of an electric car i know what you're gonna choose