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Thread: Volt production on hold for 5 weeks

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    Volt production on hold for 5 weeks

    Quote Originally Posted by Detroit Free Press
    By Brent Snavely

    Detroit Free Press Business Writer


    General Motors has told 1,300 employees at its Detroit Hamtramck that 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.

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

    The Chevrolet Volt, an extended-range electric car, is both a political lightning rod and a symbol of the company’s technological capability.

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

    In 2011, Chevrolet sold 7,671 Volts, but fell short of its initial goal of 10,000.
    Volt production on hold for 5 weeks | Detroit Free Press | freep.com

    Basic laws of supply and demand dictate the demand just isn't there, despite the average gallon of gas today hitting $3.47 per gallon in the U.S. The cost (ie., math) of the Volt just doesn't work out until maybe gas is around $5.00 + a gallon. In a related note, the Detroit Hamtramck plan was visited by the President in 2010, adding to a possible meme that if the President visits, bad things happen. Let's hope the people put out of work by this slow down, are hired back quickly.
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    Re: Volt production on hold for 5 weeks

    The volt is a bad idea.. Sure if it got what it was originally thoght to get milage wise, then yeah maybe, but it fell wayyyy short of that 200 MPH estimate.. Besides, aren't most of GM"s Volt sales to government entities anyway? How many have actually been sold to private citizens? Even at $5 a gallon the Volt, doesn't make sense with its price tag at $33K after the "rebate"... It would take you 12 years of owning the vehicle before you saw a return on the investment. Who do you know has a 12 year old car?

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    Re: Volt production on hold for 5 weeks

    Who doesn't own a 12 year old car? We do - always have had an aged one in use.

    I think that's the problem right there: people don't intend on trying to keep a car that long: they should be kept - paid off (if you plunk down more towards principle each month this can reduce the time you're paying on it significantly) - and driven, repaired, driven, repaired - until it falls apart.



    10 - 12 - 14 - 16 years should be aimed for lest it's just a waste of money from the getgo.
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    Re: Volt production on hold for 5 weeks

    I don't think the idea itself is a bad one... the subsidizing, excessive cost and inability to produce such a vehicle at say $23,000 to $28,000 (28K being fully loaded) is the problem. If that were the cost, the car would sell like hotcakes assuming no major or catastrophic design or mechanical faults existed.
    “I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on what’s being proposed here, he’d agree with it. He would agree that the First Amendment cannot be absolute.” - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.


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    Re: Volt production on hold for 5 weeks

    Quote Originally Posted by Hicup View Post
    The volt is a bad idea.. Sure if it got what it was originally thoght to get milage wise, then yeah maybe, but it fell wayyyy short of that 200 MPH estimate.. Besides, aren't most of GM"s Volt sales to government entities anyway? How many have actually been sold to private citizens? Even at $5 a gallon the Volt, doesn't make sense with its price tag at $33K after the "rebate"... It would take you 12 years of owning the vehicle before you saw a return on the investment. Who do you know has a 12 year old car?

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    Re: Volt production on hold for 5 weeks

    Quote Originally Posted by Ockham View Post
    Volt production on hold for 5 weeks | Detroit Free Press | freep.com

    Basic laws of supply and demand dictate the demand just isn't there, despite the average gallon of gas today hitting $3.47 per gallon in the U.S. The cost (ie., math) of the Volt just doesn't work out until maybe gas is around $5.00 + a gallon. In a related note, the Detroit Hamtramck plan was visited by the President in 2010, adding to a possible meme that if the President visits, bad things happen. Let's hope the people put out of work by this slow down, are hired back quickly.
    Stats don't hold water. Given that in many parts of Europe gas is at c.$8 a gallon, the Ampera should be kicking ass, and it ain't.
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    Re: Volt production on hold for 5 weeks

    I don't think the Volt is really intended to be a "mainstream" car. It's true that the economics of electric cars are not yet to the point where they're cost-effective...but Chevrolet isn't targeting a cost-conscious market when it comes to this car. The target market tends to be environmentalists who want to make a statement about who they are.

    I think it will be several years before battery technology improves to the point where the average consumer can benefit from a Volt or similar type of car.
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    Re: Volt production on hold for 5 weeks

    Quote Originally Posted by Ockham View Post
    Volt production on hold for 5 weeks | Detroit Free Press | freep.com

    Basic laws of supply and demand dictate the demand just isn't there, despite the average gallon of gas today hitting $3.47 per gallon in the U.S. The cost (ie., math) of the Volt just doesn't work out until maybe gas is around $5.00 + a gallon. In a related note, the Detroit Hamtramck plan was visited by the President in 2010, adding to a possible meme that if the President visits, bad things happen. Let's hope the people put out of work by this slow down, are hired back quickly.
    Work stoppages are not an uncommon thing on different make/models of cars, and many a year happen, even in good times. We thought of them as vacations.
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    Re: Volt production on hold for 5 weeks

    Quote Originally Posted by Kandahar View Post
    I don't think the Volt is really intended to be a "mainstream" car. It's true that the economics of electric cars are not yet to the point where they're cost-effective...but Chevrolet isn't targeting a cost-conscious market when it comes to this car. The target market tends to be environmentalists who want to make a statement about who they are.

    I think it will be several years before battery technology improves to the point where the average consumer can benefit from a Volt or similar type of car.
    This was also true of the Prius and every other butt-ugly hybrid car. Once hybrid technology started being put in cars (and SUVs!) people actually wanted to drive, they moved better and costs started to diminish. Still much more expensive than average, but actually approaching cost-effective.
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    Re: Volt production on hold for 5 weeks

    Quote Originally Posted by Redress View Post
    Work stoppages are not an uncommon thing on different make/models of cars, and many a year happen, even in good times. We thought of them as vacations.
    Yeah, you have to retool, etc. Perfectly normal.
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