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Chevy Volt Meets High Resistance, GM Suspends Sales
Hugh Pickens writes "The Hill reports that GM has announced to employees at one of its facilities that it is suspending production of the Chevy Volt for five weeks and temporarily laying off 1,300 employees. Back when GM launched the beleaguered electric car, it boldly targeted sales of 10,000 in 2011 and 60,000 in 2012 but GM only sold 7,671 Volts in 2011 and just 1,626 so far this year. 'We needed to maintain proper inventory and make sure that we continued to meet market demand,' says GM spokesman Chris Lee. 'We see positive trends, but we needed to make this market adjustment.' Although President Obama promised he would buy a Volt 'five years from now, when I'm not president anymore,' the Volt has come under criticism from Republicans in Congress because of reports of its batteries catching on fire during testing. Ironically, the shutdown comes as gas prices are soaring, exactly the time when an electric car should be an easy sell." If it's still true that GM was taking a loss on every Volt sold, perhaps this is a blessing in disguise.
Suspending production != Suspending sales. The two mean quite different things.
Anyway, 7671 volts is more than they used in an electric chair.
The lawyers saw this number and stopped production: a customer might get hurt and sue...
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
Less economical than a Prius
Not as good as a Prius
Costs more than a Prius
Buy a Prius.
To use a reverse car analogy, it's Motorola Xoom to iPad2.
From scarped cliff or quarried stone she cries "A thousand types are gone, I care for nothing, no not one."
Without significant subsidies GM would have sold even fewer cars. The subsidy is a just transfer payment to the well off. High efficiency diesel engines are probably the most cost effective option for the masses and our stupid EPA requirements keep best ones out of the USA.
I can buy TWO Ford Focus 40mpg cars for the same price as a Volt.
Unlike other districts, there are no subsidies for the Volt in Saskatchewan.
$20,000 buys a HELL of a lot of gasoline.
I do not fail; I succeed at finding out what does not work.
The Volt costs $40,000 before tax rebates and only gets you 35 miles on an electric charge. Then 35 MPG city/40 hwy (gas) for 375 miles.
The Toyota Prius starts at $24,000 and goes to $30,000 for their top end. Mileage is 51 MPG city/48 hwy for approximately 600 miles.
So Chevrolet's market was people who have lots of money, are willing to spend it with abandon, want a car, but don't really need to drive much. In short, semi-rich idiot hipsters.
I think they probably just saturated their customer base.
Learning HOW to think is more important than learning WHAT to think.
When you make a product for political reasons, not because there's a market, and then subject it to the market, it tends not to do well. Huh.
-- Two men say they're Jesus. One of them must be wrong. - Dire Straits
Volt meets Resistance. I couldn't resist.
On a serious note, GM does not have a good record with respect to embracing effective change. Its management is still intellectually corrupt, except it is no longer led by executives who came up through sales/marketing and now has had government surrogates put in their places.
GM has never had a working grip on the obvious, and I'm old enough to remember when GM-made cars were more than half of the world's output. They no longer have a monopoly, nor the world's biggest dealer network, and only, apparently, one profitable brand of auto -- Cadillac.
So, as I told a friend who had inherited money in 2001 -- "Sell GM short. They're going down."
It's true again, How long must GM wait before it can return to the courts for relief?.
The do, and people do.
I don't live in the US any more, but I'm hardly unique (ie, there are people like me still there) who would really love to go electric since our driving patterns are ideally suited to having a small, quiet, economical electric car that you recharge at night at home. (DISCLAIMER: yes, I'm aware, you need to tow your boat from LA to NYC every 2 days while simultaneously carrying 8 people and their luggage and there are no charging stations on route... electric cars useless for everyone etc etc, no possible use case etc etc...)
However, the current economics aren't making them viable - they're just too expensive at the moment but it's a chicken and egg problem since it's early generation tech and in low initial demand.
Don't mistake slow sales of a very expensive electric vehicle as definitive proof of a lack of interest. When (if?) I can buy one for a similar cost (also factoring in fuel costs) to the 2 litre turbodiesel minivan I drive right now (53 mpg EU / 44.1 mpg US) that can easily haul 5 adults and luggage then I am sure sales will pick right up. Cracking that early adopter and economy of scale problem is not easy though. Bear in mind that I also pay around $8 per gallon for diesel in the UK and it's still cheaper than going all-electric right now (or even to hybrid).
Hollywood and Predator drones, so watch your fuckin' mouth.
You are welcome on my lawn.
Aren't Fords made in the US ?
The ford focus is quite a nice and fairly popular car.
As far as I know, the mk1 Focus was developed/built in Europe in 1998, and then Ford US built it in 2000, too, with some changes. The mk2 Focus was developed independently in Europe/US (US model was very different from Europe model and only a restyled mk1). The mk3 Focus was a joint development between Ford US and Europe, and is built both in US and Europe. So the Focus is not really a good example of a good car developed solely in the US.
I just bought an American made car last week, a Honda Odyssey. It tells you on the window sticker these days where stuff was made. Assembled in Lincoln, Alabama USA. Engine constructed in USA, Transmission constructed in USA. 70% of all parts for it come from the USA, 15% from Japan, and the rest from "other".
That's good enough for me to call it American.
I can buy TWO Ford Focus 40mpg cars for the same price as a Volt.
Wow, I haven't heard anybody else suggest that simple technique for getting 80 mpg.
http://www.geoffreylandis.com
While Volts sit in dealer's lots gathering dust,
I went to the local GM dealer, and while they had one, they said it wasn't for sale. And if I wanted to buy one I'd be put on almost a year long waiting list. He basically said they were near impossible to get so dont bother right now.
Tesla was a genius. Edison however was a overrated hack who liked to torture puppies.
My 2003 Monte Carlo has 220,000 miles on it. I did choose to replace the motor and trans (both used) at 200,000 miles though instead of rebuilding the trans when the pressure control solenoid gave out and repair would have cost as much as the replacement motor and trans together, so those only have around 72K on them. Runs like a dream and by the condition of the interior and exterior you would never know this car had anywhere near 100K miles much less 220,000. Any car from the "big three" built within the past 20 years that is worth buying these days can go 300,000 miles with basic maintenance. Cars were garbage in the 80's and I think a lot of the mentality around longevity in the US these days is still based on experiences with those cars.
Last time I went to a auto show, they had the then-new Ferrari 575.
I waved the sales guy over from beyond the velvet rope (the unwashed crowds not being allowed to mix with the "real" customers) and asked him "how much is a 100,000 kilometer service on one of those things?"
the reply?
"none of our vehicles /ever/ do that many kilometers."
Delivered with just the right amount of "how dare you even THINK about driving your Ferrari that much? For shame, sir. FOR SHAME." sneering.
"Cannot get 4 adults plus dog plus ancillaries in a Yaris."
Have multiple vehicles. I don't drive my F350 Ford or 366 big block Chevy truck unless I need to, but liability insurance is cheap and they are paid for.
Multiple vehicles allows selection of the right tool for the job.
Or rent what you need when you need it. We have a small car which we mainly use for commuting. When we need something bigger or with more cargo space (like a pickup), we rent from the city carshare program or a regular car rental agency which has surprisingly good weekend rates since they have a glut of cars from business travelers). The city carshare program is especially nice when I have to work late unexpectedly, they have cheap overnight rates and there are several locations within easy walking distance from work so I've always been able to get a car when I need it, even last minute. The overnight car rental rate is cheaper than it would cost to take a cab home.
Our occasional car rental bill is much lower than our car payment would be on a second car.
Tesla Motors
Telsa is planning on an ~$30,000 model in the next few years. If they achieve this price point and maintain the quality of their current models, I think that they will have an all electric car that many people will want