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Prediction- will Volt wil KILL GM??

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Old 03-05-11, 05:20 AM
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rdgdawg
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Default Prediction- will Volt wil KILL GM??

Been posting this on another thread, my thoughts:

http://green.autoblog.com/2011/03/01...ssan-67-leafs/

Peruse Chevrolet's February sales release, and you'll notice one number that's blatantly missing: how many Chevy Volts were sold. The number – a very modest 281 – is available in the company's detailed data (PDF), but it apparently isn't something that GM wants to highlight. Keeping the number quiet is understandable, since it's lower than the 321 that Chevy sold in January.

Nissan doesn't have anything to brag about here, either (and it avoided any mention of the Leaf sales in its press release). Why? Well, back in January, the company sold 87 Leafs. In February? Just 67. Where does that leave us? Well, here's the big scorecard for all U.S. sales of these vehicles thus far:

Volt: 928
Leaf: 173
Ouch. The big questions, of course, revolve around one word: "Why?" Is ramping up production still a problem? Is demand weak? Are unscrupulous dealers to blame? When will sales start to climb? And what are these numbers doing to plug-in vehicle projects at other automakers? We don't know all the answers, but for more on February auto sales, click here
While I understand they have definitely trimmed fat and refined what was supposed to be a strategic, long-term business plan, coming out of the gate (albeit not at the numbers planned for later in the year at full launch) with decreasing numbers when the future of the company (and core business case for milking the American people for $850 billion) was based on this car is a VERY ominous sign....

I've read 50,000 pre-orders (which has been pushed HARD in the media) at full launch... GE ordered 25K electric cars (Volts) for its sales force, yet out of 25K outstanding orders (if real), sales fell in Feb... very bad sign, if I were a CEO (in this case, Obama) the spin would be coming fast and furious...

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Old 03-05-11, 06:15 AM
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caddyowner
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It's unlikely that you will kill yourself just because you shot yourself in the foot by launching a car under the completely wrong brand based on it's price point and demographics. When was the last time someone shopping for a $42K car (or $35K car after Uncle Sam's help) stepped foot inside a Chevy dealer if they weren't buying a Vette, large SUV, or pickup? Oh, and then try launching it on the coasts where folks just love domestic cars to death. They would have been further ahead launching it as a Cadillac or Buick.

I think GM has recovered enough that if the Volt is a complete flop, they will survive and the technology used in the Volt will appear in SUVs and trucks.
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Old 03-05-11, 06:17 AM
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SLegacy99
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The Volt isn't plentiful at the moment.
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Old 03-05-11, 07:01 AM
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The other problem is that it's only being sold in what, 5-6 states so far?

Still, sales are weak even considering that. Not sure why GM went ahead and released the Volt with such skimpy inventory. Now, it looks like a failure looking at the numbers. That's the last thing GM needs.

Meanwhile, the Prius sold 13,539 in February.

Only 14.6 times that of the Volt.
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Old 03-05-11, 08:23 AM
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If they sold 13,539 in just February, that would be 48.2 times the Volt's 281. It's 14.6 times the year-to-date sales.
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Old 03-05-11, 09:23 AM
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I've heard there are inventory problems but they really are having a slow launch looking at the numbers.

I'm starting to think both companies overstated hype/demand. I mean these are 2 very different vehicles and I just don't see a bunch of people jumping to them. It too nearly ten years for the Prius to become popular.

The Volt and Leaf are being bought by early adopters and likely Prius owners but in browsing their forums the results are far from glowing.

FYI Prius sales jumped big last month.
 
Old 03-05-11, 09:40 AM
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no because it has taxpayer subsdies
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Old 03-05-11, 09:50 AM
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Short answer. No.
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Old 03-05-11, 09:53 AM
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Originally Posted by Ty419
If they sold 13,539 in just February, that would be 48.2 times the Volt's 281. It's 14.6 times the year-to-date sales.
Oh yeah, thanks. I was looking at the total number for Volts.

Yes, that figure for the Prius is just for the short month of February.

48X the Volt, LOL.
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Old 03-05-11, 09:59 AM
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One of the big problems with potential Volt sales is that many potential buyers don't have acess to good charging stations. That means that they would be either relying on 110-volt household current (which often means an all-night recharge) or just running the car on the gas engine to recharge the battery more often than would otherwise be necessary. And if that's the case, then they might as well buy a conventional small hybrid like the Prius, Insight, or Civic Hybrid.
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Old 03-05-11, 11:36 AM
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I see a few glaring problems with the Volt when it comes down to signing the papers and not just talking about it.

First, the Volt relies on local electric rates for any operating savings. In some areas, the cost of electricity makes charging the Volt more expensive than buying the equivalent gas. That pushes cost-concious people to traditional hybrids.

Second, consumers are typically very uneducated, but less so at that price level. Most are able to use a calculator and realize that it is a whole lot of talk, compromise, inconvenience, and faith for very little actual monetary or environmental gain. That pushes rational people to traditional hybrids, which at that price level are considerably nicer than the Volt.

Third, most people are aware that adding demand to the grid is worse than running a ULEV vehicle, environmentally speaking, as the added electricity production is significantly worse than the relatively clean emissions of vehicles such as Prius, Civic, etc due to the heavy reliance on outdated coal facilities to meet demand. That pushes environmental people toward the "cleaner" traditional hybrids.

I'm just not sure who GM thinks is supposed to be buying this car aside from some small demographic segments, mostly reliant on some sort of ignorance. I think a lot of consumers are wondering the same thing. The more we "wait and see" what the real feedback is, the worse it gets.

So no, I don't think it is going to kill them. It could kill their credibility, though, since they have really pushed this thing for a long time and it isn't really living up to much of the hype.

Last edited by Ty419; 03-05-11 at 11:41 AM.
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Old 03-05-11, 11:40 AM
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Originally Posted by 1SICKLEX
I've heard there are inventory problems but they really are having a slow launch looking at the numbers.

I'm starting to think both companies overstated hype/demand. I mean these are 2 very different vehicles and I just don't see a bunch of people jumping to them. It too nearly ten years for the Prius to become popular.....
Originally Posted by mmarshall
One of the big problems with potential Volt sales is that many potential buyers don't have acess to good charging stations. That means that they would be either relying on 110-volt household current (which often means an all-night recharge) or just running the car on the gas engine to recharge the battery more often than would otherwise be necessary. And if that's the case, then they might as well buy a conventional small hybrid like the Prius, Insight, or Civic Hybrid.
The plug-in is a BIG issue + the Volt runs on premium. BRILLIANT
My point- if they didn't consider these (and factors as listed above), then how is Govt Motors any better than General Motors? I can think big all I want, how I EXECUTE (ie TIMING) is what ultimately makes it happen and sustains my company goals and growth objectives...

Maybe GM can provide the charging stations too .... wait a sec, Immelt's on Obama's lap... err, Job Czar and Corp Finance teams.

Wait, could GE OWN GM someday???? <cue Twilight Zone music>....
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Old 03-05-11, 01:59 PM
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Has GM made any comments on actual targeted sales figures for 2011?

Of course, getting a bad review from Consumer Reports probably doesn't help.

http://www.consumerreports.org/cro/m...view/index.htm
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Old 03-05-11, 02:28 PM
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Too early in the game. Production and delivery is all screwed up, so can't make any judgements.
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Old 03-05-11, 02:45 PM
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Originally Posted by IS-SV
Short answer. No.
I agree.

This single model won't make or break GM. If it suceeds, it will help GM's image. If not it will be another footnote in automotive history.
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