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Volt production on hold for 5 weeks | Detroit Free Press | freep.comDetroit Free Press said: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.
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.