Chevy Volt: Still Not Selling

Jonathan V. Last - August 3, 2011
http://www.weeklystandard.com/blogs/chevy-volt-still-not-selling_581956.html

The July sales numbers are out and the Chevy Volt continues to electrify (get it?) the country. GM sold … 125 Volts last month!

Way back in March I made fun of the Volt for selling 281 units in February. Turns out, February was a good month. But wait, there’s more! GM says they’re going to increase production to 5,000 Volts per month in order to keep up with demand. You see, they claim that the reason the Volt isn’t selling is that they can’t keep enough cars on the lot. A GM spokeswoman recently claimed that they are “virtually sold out.” Which is virtually true. Mark Modica called around his local Chevy dealers and found plenty of Volts waiting for an environmentally conscious driver to bring them home.

All told, GM has sold close to 2,700 Volts. (Funny aside: There’s a Volt in my neighborhood and a Volt that parks in my garage at work. So I see almost 0.1 percent of all the Volts in America on a daily basis.) But hey, the EV future is just around the corner.

Control
Here in the birthplace of GM, dealers don't have enough stock of the Volt according to news reports. My area is a skewed one, with many current and former GM workers able to buy products like the Volt with the "Class A" discount. Buying as a free agent is quite another thing, understandably.

I'm sorry it's not doing well.

Jim

Chevy qyality = -1
Chevy trying to set the standard in automotive tech = -2
Chevy Volt looks = -3
Chevy Volt price = -4

Chevy = Fail

Volt is like the mini disk.... Just never caught on.
Saw this coming.....

Nissan Leaf outselling Chevy Volt 2 to 1, can GM catch up?

http://jalopnik.com/5836562/nissan-leaf-outselling-chevy-volt-2-to-1-can-gm-catch-up

In the sales slap fight between the all-electric Nissan Leaf and the Chevy Volt plug-in hybrid, the Leaf has the Volt by the wrists and asking why it keeps hitting itself. Chevy's response: Wait 'til next month.

We've learned from Nissan today that it sold 1,362 Leafs in the United States in August alone, bringing its total since December to 6,187. The company's execs have said they could move 12,000 Leafs this year, part of a massive ramp-up worldwide. Meanwhile, after shutting its Detroit factory for retooling a slightly cheaper 2012 model in July, Chevy sold an anemic 302 Volts in August, and has moved 3,498 so far since December — versus its target of 10,000 for calendar year 2011.

While GM said it had almost no Volts in stock at the end of July, it built 2,395 in August; Cars.com now lists more than 1,200 for sale. The numbers alone suggest Chevy has a far larger supply of unsold Volts than typical for a new vehicle, especially one that's supposedly in high demand.

Chevy spokeswoman Michelle Bunker says the sales figures don't include 784 Volts delivered to dealers as demo vehicles, part of a marketing plan to put a Volt in almost every Chevy dealership nationwide as a showroom lure, which will soak up 2,500 Volts this year. Bunker also says not all of the Volts built in August have left the factory, and that GM is still filling the pipeline of Volt demand.

That said, to meet its target of 10,000 retail sales for 2011, and prove to many critics that the Obama administration-backed public dollar-financed bankruptcy was a success, GM will need to sell about 1,700 Volts a month starting right now. That's about 65 a day for every day its dealers are open, versus the 11 a day it managed in August — for a $40,000 small car in an economy where consumers appear to be more nervous about spending than they've been in years.

For all its taunting of the all-electric Leaf for the range anxiety that comes from potentially being left stranded without a charge, it appears it's Chevy that's now facing a different kind of anxiety — sales anxiety.


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Is the Chevy Volt a sales flop?

http://jalopnik.com/5846097/is-the-chevy-volt-a-sales-flop

General Motors has repeatedly claimed a sales target for 2011 of 10,000 units for the plug-in hybrid Chevy Volt sedan. But, nine months into the year, they've only shipped 3,895 off the lot. In fact, in September sales numbers, released an hour ago, GM sold only 723 Volts. Will GM fail to meet its own sales predictions?

To be fair, GM has claimed that sales would falter during the summer because of a pre-planned shutdown of the automaker's Hamtramck assembly plant. But, it was thought by most analysts that GM would have already swallowed that hiccup and by September we'd see higher sales. Despite more than doubling last months sales, we somehow don't think 723 units sold this past month is what one would consider massive sales momentum — especially given this summer's anemic numbers. And that's not to say there aren't any Volts on dealer lots. Cars.com shows over 2,600 units available in a nation-wide search of new vehicle listings.

To give you an idea of how few vehicles that is, here are just a few of the GM vehicles that sold better than the Chevy Volt this month:

Cadillac Escalade - 1,527
Chevrolet Colorado Pickup - 2,171
Chevrolet Avalanche - 1,861
Chevrolet Suburban - 5,246
Buick Lucerne - 1,068

That last car, the Buick Lucerne, is even more ironic considering it's made on the very same assembly line as the Chevy Volt — yet the Buick-for-blue-hairs still managed to sell almost 50% more units this past month.

Compare those sales with the vehicle most pundits position as a direct competitor — the Nissan Leaf all-electric car. Nissan sold 1,362 Leafs during the month of August and 1,031 during the month of September. Year to date, they've sold 7,199 — twice the number of Volts GM has shipped off dealer lots.

GM has a steep hill to climb if they plan on making their claim of 10,000 units sold. By our count it means they'll have to sell over 2,000 Volts during each of the remaining three months of 2011. We'll see if they can make it — or if the Volt ends up being a flop for GM in its first year of sales.

So what does all this hand-wringing mean? Who knows. It could mean there's very little desire for such weird, new technology. Or it could just mean GM's still working the kinks out of the supply chain. All we know is — sometimes it's best not to put hard targets to leap over unless you're sure you can clear 'em. Because tripping and falling always hurts.

Sounds as if the government is still in control of GM. Your stats also validate the government especially this administration is using propaganda to it’s fullest. However, this administration is so incompetent they can’t even spin it convincingly.

Just south of Memphis in Tupelo, MS they built a new plant that was going to be the Prius, plant. They had the skeleton built almost ready to start installing all the equipment when the entire project was put on hold for almost two years. Fuel prices dropped, they lost money on every Hybrid they built, thus they retooled and should open any day producing Highlanders. The Japanese like them or not are pretty good indicators as to which products will be a winner. I’m guessing “for now” Hybrids and other alternative fuel autos represent such a small percentage of the future they just build them to keep the bunny huggers off their backs.

GM bashing looks like good sport. Their recent UAW contract settlement was either an indication that the company is doing well, or represents giving away the farm. I hope it's the former. If it is the former, they have the lee-way to be bold with regards to products like the Volt. Ford didn't let the Edsel-flop slow them down. They emerged shortly thereafter with the Mustang. Not too bad, eh? That's how that industry works.

I test-drove a Traverse last week. Great vehicle. The new Buick Regal is a sweet-looking vehicle as well. I'm told it's German-designed, made here.

It's a global market with many, many products. I applaud them, Nissan, etc. for having the gonads to launch into the alternative energy world with solid products.

Jim

According to the news this morning all the american auto makers sales are up, and japan's are down, most likely due to the tsunami.

Not sure if the electric thing will totally catch on, not much of a range on them. Until they can extend the range I think internal combustion will rule for our lifetime.

Funny, I was reading through this post, then ran across this article (with a totally different viewpoint):

http://gm-volt.com/forum/showthread.php?9246

I still haven't seen one on the road in NorCal.

jim I think buick has some great looking auto's. Not bashing detroit, just our buffons in the gov. Ford has some great cars as well the...taurus looks awesome. a buddy of mine just got a new ford suv and it is sweet.

Actually i just read that toyo is back to 100% production.

dfleetwood

Sounds as if the government is still in control of GM. Your stats also validate the government especially this administration is using propaganda to it’s fullest. However, this administration is so incompetent they can’t even spin it convincingly.

Actually, GM is in charge of GM. Just like how Wall Street is in charge of Wall Street. Not the government. GM has already paid off about half of the approximately $50 billion they were loaned. Why would you want a major industrial player in America to default, factories shut down, and Americans suffer just so you can say that government is bad?

I never said I wanted GM to fail that is the as far from the truth any single person could ever state. I just don’t want the gov. involved in private industry. You do realize that it is illegal for the gov. to be in competition with the private sector. There are caveats to this law, regardless the government is a horrible operator.

I do find it comical that Obama’s administration takes over 61% of GM and almost immediately he mandates they slash the marketing budget stating they are spending/wasting dollars. This coming from the mouth of an individual that just dropped 700 million to get elected. No pun but it’s a good example of the pot calling the kettle black.

Also remember that GM has about another 50 billion in tax credits they will benefit from after they pay back the money owed the treasury. I wish all American corporations the best and what is best for American corporations less gov.

Hilario

Actually, GM is in charge of GM. Just like how Wall Street is in charge of Wall Street. Not the government. GM has already paid off about half of the approximately $50 billion they were loaned. Why would you want a major industrial player in America to default, factories shut down, and Americans suffer just so you can say that government is bad?

Actually, your facts are goofy. GM hadn't made a profit in five years and was bailed out of bankruptcy when the federal government became the majority owner (61%) in 2009. Last I heard, the government has since sold off some of their interests so they still owned 33%.

As for the repayment of the loans you cite, guess what? Every penny of that repayment hasn't come from GM earnings, sale of assets or profits, but by funds supplied entirely by -- guess who? -- the federal government.

http://articles.sfgate.com/2010-04-27/business/20870864_1_gm-loans-general-motors-chairman

Control Freak

Hilario

Actually, GM is in charge of GM. Just like how Wall Street is in charge of Wall Street. Not the government. GM has already paid off about half of the approximately $50 billion they were loaned. Why would you want a major industrial player in America to default, factories shut down, and Americans suffer just so you can say that government is bad?

Actually, your facts are goofy. GM hadn't made a profit in five years and was bailed out of bankruptcy when the federal government became the majority owner (61%) in 2009. Last I heard, the government has since sold off some of their interests so they still owned 33%.

As for the repayment of the loans you cite, guess what? Every penny of that repayment hasn't come from GM earnings, sale of assets or profits, but by funds supplied entirely by -- guess who? -- the federal government.

http://articles.sfgate.com/2010-04-27/business/20870864_1_gm-loans-general-motors-chairman

Good article. So what is the advantage in using one federal loan to pay off another? From the sounds of it the federal government is still going to take a hit on this one no matter how it shakes out.

The nerve of you to use actual facts! They can’t even turn a profit when they have OPM once again this shows how poorly governments are as business operators.

I may add,where do the fed's get their funds??? You guessed it from the little guy and the big money makers. Or print it.

All that being said I still don't want them going under, I just want them out of the private sector. Last GM does not fully operate GM they are still living under gov. mandates. When was the last time the gov. ever came in and fired the CEO? Maybe he needed to be fired maybe not but it is not the gov.'s job.

The formerly known as the "big 3" is still the dominant business news here in Michigan. I live in a 'burb of Flint, the birthplace of GM. When the former CEO was let go, I felt bad at first. Then I learned he walked away with millions in severance. And, yes, he was one of the CEOs that went to Washington, hat in hand, on the wings of a private corporate jet.
The Fed overseer described GM management as "friendly arrogance", craftily blaming everybody and everything else for their woes.
I read an interesting point re: the bailout. While Ford didn't get a bailout, they had to support it because they used the same supplier-chain as GM and Chrysler. That supplier-chain needed the bailout to stay in business, too.
Jim

The knee bone is connected to the leg bone. I can see that regarding your Ford statement.

The CEO's have agents just like a ball players and they negotiate some incredible deals. Just like the gov. of FLA Rick Scott was the the former CEO of HCA he cost them 1.8 billion he gets fired walks with 300 million. I don't like it but I would certainly take it if I were in his position. These guys are arrogant and once they reach the penthouse it's like the fox watching the hen house. There are some fantastic CEO's but like many in the gov. they are so out of touch with the man on the street it's pathetic.

They typically take one monster company drive it in to the dirt then get a better deal and do the same thing. I don't know what you do for a living but I typically get 1 maybe two screw ups and I've lost a client forever.

If you are in the gov. or on the corporate mountain top it appears that you have an unlimted get out of jail free cards.

No offense to any gov. employees unless you happen to be one of the problems but my next life I’m coming back as a gov. employee, one of the upper tier SOB’s…no accountability, don’t really have to produce just show up and fake it. Corrupt young minds, payoff others with gov. programs so I will be voted back in, life would be good.

CF, I'm not taking sides on this because the past two administrations did nothing but throw tax payer money at failed businesses. While as D-Fleet referenced, the CEO's ran the company's bankrupt while paying themselves 10's of millions and getting fired with exorbitant "thanks for the effort" going away presents. My question is do you have a link to a more recent article on how this "loan" is playing out. That link is from April of 2010.

Dave
I'm guess I'm one of those gov't employees, but I never experienced what you are describing. The two agencies I worked for were highly accountable, and increasingly so as my career progressed. Both were well-managed fiscally, fully understanding they were playing with "house" money, a term I always used with staff to describe that our funding was tax-based.
I understand that "gov't employee" is used pretty rampantly these days, but "gov't" is a pretty broad area and many don't fully understand what falls under its auspices. Organizations are organizations, whether they be private or public. GM is proof that just because you're "not gov't", you must be well-run.
All around your community, Dave, are hard-working public employees that don't waste a penny of your hard-earned dollar. Thanks to that hard-earned dollar, mostly the less fortunate benefit from those services provided by those public employees.

Jim

Jim:

When I make a blanket statement such as targeting government employees I realize that its far too broad of a statement. I’m not targeting the teachers, or the troops such as in civil servants,(not military) as they are the ones that are doing the work. Like any business some of those are excellent employees and just as in private industry some stink. Human nature.

I’m mostly referencing the legislators, mayors, governors, senators etc. Just as in the private sector it would be the CEO’s Presidents, COO’s management. Some are great and some can’t find their you know what in the dark. My issues can start locally with our mayor just like the history that Detroit has had with its. So many are so corrupt. Or it could be the school superintendant some are the best and others just plain suck. I’m a pretty decent business man and our mayor sold a piece of property for 50 grand, one year later he purchased it back for one dollar….think there was some monkey business in that transaction. Or the city councilman that gets caught taking a payoff goes to jail and then gets reelected much like Marion Berry who by the way is a Memphian.

I with a couple of other investors started a new business almost two years ago exactly. This biz is government regulated. It took us a year longer to actually conduct business as we had to deal with the red tape in Nashville the capital. We would go before a regulatory board that consisted of 7 bd members and 15 atty’s sat on the side lines. Inefficiencies like this drive me crazy. On the other side of the coin I got so sick of it I went to my state representative and once he was involved we were in the pipeline and things moved very quickly and efficiently.

There are good politicians ( I think ) and there are great CEO’s it’s just that I primarily despise the politicians in DC they make me ill. Or on a local basis I despise the local political figures that play politics with our city and typically it’s for their own personal gain.