Think GM's Volt is Failing? Think Again

[zete]

Think GM's Volt Is Failing? Think Again
By Ted Reed
theStreet.com

DETROIT -- (TheStreet) -- October ought to have been a bad month for Volt. Gas prices were falling. Auto industry wisdom had it that with so many conventional cars closing in on 40 miles per gallon, why would anyone spend $30,000 for a compact? Also, the last month of the presidential campaign reinvigorated advocates of the political construct that anything government does -- particularly saving GM (GM) -- is bad.

Nevertheless, Volt had its best month ever in October, selling 2,961 units. This broke the record, set in September, of 2,851 units sold. That broke the August record of 2,831 units. In fact, Volt sales have increased for six consecutive months. For the first 10 months of 2012, sales totaled 19,309. Sales totaled 7,671 in 2011 and 326 in 2010.

:

GM said six of 10 Volt sales are "conquest" sales to buyers who previously owned other brands: the top trade-ins are the BMW 3 Series, Honda (HMC) Civic and Prius. But Volt sales will likely slow this month due to low inventory after production is suspended for four weeks to allow for retooling so that GM's Hamtramck plant, where Volt is built, can also build the 2013 Impala.

Volt's price is high because the cost of introducing new technology is high, but "we're working hard to bring it down," Cain said. "Each new generation should bring it down further and keep us on the road to profitability. (It takes time) to get experience with the technology, to get more efficient battery packs. You just can't miracle this stuff."

More at link.

[zete]

Yes, it's expensive, but it's nice to see that some people in the media are telling it like it is as opposed to calculating "loss per car" based on fictitious accounting methods or other idiotic means.

November numbers will be interesting.

[camaro_freak]

THING? please change title lol

[zete]

THING? please change title lol

So my fingers dropped a bit ...

[SiK GambleR]

i love my volt, im so happy to see sales of this car taking off

[JBsZ06]

Volt is dam impressive. Good to hear sales are strong for this 40 thousand dollar vehicle. I realize their are tax incentives but anytime. A 40 grand niche vehicle sells this well...month after month it's a good thing

Thanks for the report

[megeebee]

Honestly, I never thought of it as "failing". But the average person hearing and reading all the negative commentary in the media (especially from CERTAIN SOURCES), can be forgiven for thinking that is was.

[96RIV]

According to the article, it is the Honda Prius, and the 2013 Impala...

[10shelby]

Great news for the VOLT................I hope my local U.S. Representative reads this. He's a Chevrolet Cadillac dealer and constantly knocks the VOLT..........says he won't sell them and refuses to sell Corvettes. He also has a KIA/Hyundai dealership on his premises. He latest political ad says that the government was wrong in buying VOLTS to prop up General Motors.
He, according to one of the other local Chevy dealers has directed Cruze buyers to an Elantra.

This man should lose his dealership.............congressman or not!

Delete this post if you wish.............but facts are facts!

[zete]

Great news for the VOLT................I hope my local U.S. Representative reads this. He's a Chevrolet Cadillac dealer and constantly knocks the VOLT..........says he won't sell them and refuses to sell Corvettes. He also has a KIA/Hyundai dealership on his premises. He latest political ad says that the government was wrong in buying VOLTS to prop up General Motors.
He, according to one of the other local Chevy dealers has directed Cruze buyers to an Elantra.

This man should lose his dealership.............congressman or not!

Delete this post if you wish.............but facts are facts!

I think your representative perfectly fits that famous quote of Mark Twain's:

Suppose you were an idiot. And suppose you were a member of Congress. But I repeat myself.

[StormHunter77]

Great news for the VOLT................I hope my local U.S. Representative reads this. He's a Chevrolet Cadillac dealer and constantly knocks the VOLT..........says he won't sell them and refuses to sell Corvettes. He also has a KIA/Hyundai dealership on his premises. He latest political ad says that the government was wrong in buying VOLTS to prop up General Motors.
He, according to one of the other local Chevy dealers has directed Cruze buyers to an Elantra.



This man should lose his dealership.............congressman or not!

Delete this post if you wish.............but facts are facts!

....

So....

a Congressman owns a dealership, and to make a point against Democrats, he refuses to sell the Volt and Corvettes (Whah?), but feels that it is perfectly patriotic to steer a customer to a Hyundai Elantra?

Hold on.....I must be missing something. NO American cars, because Americans bailed out an American (and iconic) car company (and massive employer) because the decision to do so involved a Democratic President (and Republican one at first, if I remember 2008 correctly)....BUT, he thinks sending sales (and thus money) to a foreign manufacturer is somehow better.

My brain can't handle this lack of logic. Someone help.

[Tre-Tre]

I knew the Volt is an awesome game changer. All it would take is time and patience. The market has spoken and it's early.

[eastcoasthd]

....

So....

a Congressman owns a dealership, and to make a point against Democrats, he refuses to sell the Volt and Corvettes (Whah?), but feels that it is perfectly patriotic to steer a customer to a Hyundai Elantra?

Hold on.....I must be missing something. NO American cars, because Americans bailed out an American (and iconic) car company (and massive employer) because the decision to do so involved a Democratic President (and Republican one at first, if I remember 2008 correctly)....BUT, he thinks sending sales (and thus money) to a foreign manufacturer is somehow better.

My brain can't handle this lack of logic. Someone help.

One word, Wingnut!

Mr. Kelly should tread lightly, selling automobiles maybe his only job in the not too distant future.

[Andrew L]

My cousin in Las Vegas had a BMW 6 Convertible and she traded it in for a Volt this past summer. So far she is loving it. She would be considered one of those conquest sales.

[Ed753]

Just bringing a bit of perspective to the exuberance.............

No mention of the $2,000~$3,000 of dealer cash that GM started in August (which aligns with the sales momentum)?

Plenty of inventory; they made 1,214 in September, 1,710 in October, reduced inventory about 3,000 units, but isn't that what GM wanted to do?

Also if you care, a different way to look at it; 30,706 made YTD - 19,309 sold YTD = 11,397 in Inventory, which is 4 ~ 5 months inventory.

No excuses for a drop in sales, other than reduced demand.

Interesting Comments:

"I don't think Volt is where GM and Chevrolet want it to be," said Polk analyst Tom Libby. "They sold about 3,000 units in October, while the industry sold 1.1 million. They are getting volume up from where it was, but the number is very low relative to what it needs to be accepted and to meet GM production goals. Also, as a footnote, even if the number were to double to 6,000 a month, GM is still losing a lot of money."


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"Volt's price is high because the cost of introducing new technology is high, but "we're working hard to bring it down," Cain said. "Each new generation should bring it down further and keep us on the road to profitability. (It takes time) to get experience with the technology, to get more efficient battery packs. You just can't miracle this stuff."


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"The costs are very high because battery costs are still high and the whole architecture of the Volt is expensive," he said. "It has everything you put in an ordinary car, plus a more expensive and complicated transmission, a huge battery, and all the power electronics that go into controlling the battery. There is no way this kind of architecture will ever be as cheap as a pure electric vehicle or a pure internal combustion engine.

However, "over time, battery costs come down," he said. "GM has made a lot of investment in bringing down battery costs and there are a lot of interesting technologies around. Then you start to talk about does it make sense economically (if) it pays for itself in a few years. "I don't want to come across as thinking this cannot work,"