Volt production on hold for 5 weeks

[Ockham]

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.

 

[Hicup]

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?

Tim-

 

[Aunt Spiker]

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.

:shrug:

10 - 12 - 14 - 16 years should be aimed for lest it's just a waste of money from the getgo.

 

[Ockham]

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.

 

[LaMidRighter]

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?

Tim-

Even then you would lose the return when you had to replace the main battery.

 

[Andalublue]

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.

 

[Kandahar]

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.

 

[Redress]

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.

 

[Harshaw]

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.

 

[Harshaw]

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.

 

[Redress]

Yeah, you have to retool, etc. Perfectly normal.

Retool is usually not going to shut down production except on specific items. Inventory is the biggest factor, and how long an inventory is projected to last. This type thing referenced in the OP is absolutely normal for the auto industry.

 

[Utility Man]

Well I hope they are looking at excess inventories of gas hogs as well.

If the price of gas goes bonkers again, the problem for them is probably going to be the gas guzzlers that will go unsold.

 

[EagleAye]

As always, there are people around who prefer to kill domestic American energy production of electricity - with slanted bad news like in the OP - in favor of supporting the Saudi royal family and the Saudi oil baron's friends, al-Queda.

More interesting news about the Volt:

While we expect critics – including those who for some reason lurk around GM-Volt, and who are being watched for the attitude they project – may pounce on the above statement, GM has said it is still working on rebuilding its damaged image.

It bears repeating because it is true: The Volt’s reputation was damaged following fictional reports of Volt batteries “exploding” and other extravagant tales. I’m still asked by people about the alleged big fire risk. The misinformation was willfully spread, it didn’t happen in a day, and its reversal won’t either.

But over in Europe, news is a bit brighter for the Volt’s cousin. They are only doling out perhaps one-quarter the U.S. number of E-Revs, and if GM will extend its policy of matching supply with demand, it should probably think about increasing the Euro allocation.

This regards the European version of the Volt, the Ampera.

The company says it is approaching 6,000 European orders, is well on the way toward its (conservative first-year) sales goals, and is taking sales away from premium brands.

“Our first deliveries are running smoothly and I’m pleased to confirm that our sales target of 10,000 units for 2012 is on track,” said Enno Fuchs, Opel’s e-mobility launch director. “We’re very happy that our European customers can now drive our revolutionary Ampera.”
[...]
“The majority of Ampera retail customers previously owned top premium brand cars and are making the switch to the Ampera and Opel because they want to be the first to use such cutting-edge technology,” Opel said.

Volt and Ampera selling relatively well – UPDATED

 

[Harshaw]

Retool is usually not going to shut down production except on specific items. Inventory is the biggest factor, and how long an inventory is projected to last. This type thing referenced in the OP is absolutely normal for the auto industry.

I was agreeing with you.

 

[Redress]

I was agreeing with you.

Oh. Well I will just shut up then.

 

[Eighty Deuce]

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 agree. As electric cars ago, the Volt seems as good as any. Haven't been around, but if there has been a thread about how the Tesla's "brick", it makes one want to avoid the all-electric, and opt for such as a hybrid Volt.

The price is still too high, and if at your numbers, would have far better appeal. And that external combusion thing.

But at least GM made the right business decision now, IMMHO. Inventory, and a bit of a mechanical and image make-over, are needed. I would hope for the day when everyone drives a decent hybrid. Recharged by nuclear and clean-coal

 

[Rhapsody1447]

Inventory is the biggest factor, and how long an inventory is projected to last.

It may have something to do with this:

 

[Grendel]

The volt is a bad idea.

It's not a bad idea, it's just new technology. Like all new technology, the first generation or so is a little rough. The first internal combustion engines were abominable pieces of crap, too. Honest to god death traps with poor steering, wooden wheels, wooden spring shocks, little, if any breaks, no mufflers, and they cost a forutune. Toys for rich people, basically.

However, the technology was a good idea -- even if badly implemented -- and it improved very, very rapidly once the basics of design and production were worked out. We'll probably all be driving electrics in a few decades, and they'll probably be fast and cheap. It's just the early stage technology that's weak.

How many of us used to dial up to BBS's on 286's? Well, now we have cable modems and quad-core pentiums with 64 bit integer limits, and they only cost a couple hundred bucks. The only way to get to the current machines was through the old ones. The only way to get to high output aluminium small blocks with traction control and electrically actuated ride control was through single piston trash heaps that cost a fortune. And the only way to get to whatever we'll be driving at 40 miles an hour in the left lane with our blinkers on when we're old is through things like the Volt.

Using electric makes the energy source irrelevant -- something that happens at the electric plant and you don't even know about it. Hyrdrogen, nuclear, coal, fossile fuel, synthetic hydro carbons, or whatever we start augmenting power production with won't matter to the vehicle, as long as it comes down the wire as AC. That's a very, very good idea.

Who do you know has a 12 year old car?

I kept my last truck 13 years. My current car is an '04 and I don't plan to sell it for many more years.

 

[OpportunityCost]

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.

Then why exactly are we subsidizing 10k of the sticker? If thats the demographic they dont need the subsidy, they ought to be ready to pay a higher price for a ****in status symbol.

 

[LaMidRighter]

Then why exactly are we subsidizing 10k of the sticker? If thats the demographic they dont need the subsidy, they ought to be ready to pay a higher price for a ****in status symbol.

I'm a GM lover and absolutely HATE the Volt. I get that it's a technological innovation, and it's the better of both the long range gasoline and short term electrical worlds, but it is not exactly the eigth world wonder and there could have been better vehicles produced until they got the price and quality right. The car is not selling well and it really is an expensive **** box.

 

[Canell]

Given that in many parts of Europe gas is at c.$8 a gallon, the Ampera should be kicking ass, and it ain't.

That's because the Ampera costs €43 000+ (that's $57 000+ !!!). WTF? It's insane, the price is almost double that in the US! :twisted:
I don't get.

 

[Your Star]

Electric cars aren't that more environmentally friendly anyway, since where does the electricity come from? Fossil fuels mostly, we need to find another energy source, not just rearrange how we power things.

 

[LaMidRighter]

Electric cars aren't that more environmentally friendly anyway, since where does the electricity come from? Fossil fuels mostly, we need to find another energy source, not just rearrange how we power things.

I've been saying that for years. There was a study done as well saying particulate matter is actually worse from electrics and hybrids. Less CO2 mind you but more carcinogens and other pollutants due to the materials needed for the battery and recharge systems

 

[Hikertrash]

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?

Tim-

I thought most people bought cars because they liked them and could afford them.

I bought a IBM desktop computer in 1996 that had a 10GB hard drive and 8MB of RAM for $1200. Now look at how much the prices have come down. You can get a laptop with 750GB HDD and 4GB RAM for half that price.

If GM can hang on a few years, costs will come down and the Volt will be more affordable.

 

[Hikertrash]

It may have something to do with this:

View attachment 67123281

An updated inventory would be better. Auto sales in February were the best in four years.