GM Struggling to Meet Chevy Volt Goal

National Legal & Policy Center ^ | November 2, 2011 | Mark Modica

[jazusamo]

General Motors has staked much of its credibility on the Chevy Volt. GM has a goal of selling 10,000 of the vehicles in 2011 and is only about half way there with two months remaining. Ad spending seems to have ramped up faster than sales though with much of GM's marketing dollars going towards Volt commercials while only 1,108 of the vehicles sold in October. I can't remember ever seeing as many TV ads for a vehicle that has sold in such low numbers. Despite the low proportionate sales to hype ratio for the Volt, sites like Mother Nature Network are proclaiming success for the Volt with the headline reading "October was a great month for Chevy Volt Sales."

So just how great a month was it for the Volt and for the taxpayers who continue to be bilked out of billions of dollars for the misguided greening of America? Well, compared to the Nissan Leaf tax subsidized vehicle, Volt sales don't look too bad. Only 849 Leafs sold in October. The two most hyped green vehicles of the year, which were built at the expense of billions of taxpayer dollars, could not even break 2,000 combined sales. It is hard to validate the benefits to society or polar bears at such low levels of sales, particularly given the fact that the Volt has limited range in electric mode. The bar had been set so low for Volt sales in the first portion of the year that green ideologues are now boasting about sub-mediocre Volt sales.

Up to this point, GM has blamed supply constraints for low Chevy Volt sales. This defense loses credibility when you take into consideration the fact that GM recently canceled plans for a second shift to produce Volts. The Toyota Pius, which had supply hampered by a massive earthquake and tsunami, managed to outsell the Volt by a margin of 10 to 1. Curiously, the numbers looked somewhat similar, with the exception of a missing 0 from the Volt numbers. Prius sold 11,008 compared to the Volts 1,108. Sales for the year stand at 104,251 for the Prius and 5,003 for the Volt. And the Prius does not benefit from a $7,500 tax credit for buyers like the Volt does.

The actual supply of Volts is also a source for debate. GM claims a 72 day supply of inventory for the Volt. Cars.com shows 3,537 Volts available for sale. VIN numbers are listed for these vehicles. Either GM is not telling the truth about Volt supply, or Chevy dealerships are (perhaps illegally) advertising vehicles that are not truly for sale. The most likely scenario, in my opinion, is that GM is not counting any vehicles that have been used as demos as inventory, even though these vehicles are now available for sale. If the cars.com number is a more accurate number for inventory, the Volt would have over a three month supply available. Compare this to the 11,677, or one month supply, of Toyota Prius vehicles listed on cars.com and the low supply defense for poor Volt sales further erodes.

There is another missing set of data for Volt sales that is the most important. Just who is buying the vehicles? Many articles point to localities buying vehicles, at heavy discounts , for police and other fleet use. Crony corporation, GE, has stated that they will buy 25,000 of the vehicles. Our federal government continues to help GM out through fleet purchases and funding through government owned Ally Financial. If GM manages to somehow manufacture enough demand for the Volt in the last two months of the year to sell 10,000 vehicles by year end, the sales will most likely not have come from individual consumers. That won't matter to GM though; regarding the perceived success of the Chevy Volt, while it might not be nice to fool Mother Nature Network, GM will certainly continue to try.

Mark Modica is an NLPC Associate Fellow.

[jazusamo]

It seems GM filled the orders of all those buyers that were on waiting lists in October being there are at least 3500 in stock now, I guess there weren't many names on the list. /sarc

[Paladin2]

Not enough potential.

I want a High Voltage (4x4 SUV).

[Responsibility2nd]

[NoLibZone]

No one wants a coal burning car.

[Old Retired Army Guy]

Anybody remember the Vega? Same scenario.

[muir_redwoods]

Here in CT this weekend the advisability of a plug-in electric car took a serious down turn. I can store gasoline ( when I can get it) in cans but electricity is hard to store easily.

[AngelesCrestHighway]

“So just how great a month was it for the Volt and for the taxpayers who continue to be bilked out of billions of dollars for the misguided greening of America?”...

The “government turd on wheels” is a colossal failure.

[jazusamo]

Please bump the Freepathon or click above and donate or become a monthly donor!

[WOBBLY BOB]

has a goal of selling 10,000 of the vehicles in 2011 and is only about half way there with two months remaining.

time for another Executive Order!

[AngelesCrestHighway]

The Vega...Who would make an aluminum engine block with no steel cylinder sleeves?....Chevrolet perhaps?

[lacrew]

Is GM still publicly traded?

The mis-information they have been putting out on inventory and sales borders on criminal, if they are traded.

[jazusamo]

Yep, I just checked the price and it’s $23.41. The IPO a year ago this month was $33.00.

You’re right, the misinformation on this car has almost been criminal.

[CodeToad]

Who the Hell can afford a $40,000 econobox? I bet the tax savings of $7,500 is cut off for people making over $109,000, which is the demographic that can actually afford a $40,0000 car.

[ken5050]

First, rememebr OUR tax dollars pay for the ad spending. I’d love to know what the ad cost per car sold is? Say it’s $10k..why not stop all ads, just put a $10k coupon for the Volt on the Checy website...the news would spread virally....

[ken5050]

First, rememebr OUR tax dollars pay for the ad spending. I’d love to know what the ad cost per car sold is? Say it’s $10k..why not stop all ads, just put a $10k coupon for the Volt on the Checy website...the news would spread virally....

[ken5050]

First, rememebr OUR tax dollars pay for the ad spending. I’d love to know what the ad cost per car sold is? Say it’s $10k..why not stop all ads, just put a $10k coupon for the Volt on the Checy website...the news would spread virally....

[ken5050]

First, rememebr OUR tax dollars pay for the ad spending. I’d love to know what the ad cost per car sold is? Say it’s $10k..why not stop all ads, just put a $10k coupon for the Volt on the Checy website...the news would spread virally....

[jazusamo]

You’re probably right, of course it’d still be our tax dollars in the $7,500 tax credit.

I’d sure like to know how many Volts would have sold by now without the tax credit.

[tumblindice]

Or sell a car in Mexico with a name that means `It won’t go’: Nova.

[Reagan80]

Sales Figures for the Ford Edsel; the greatest automotive flop of All-Time:

1958: 63,110
1959: 44,891
1960: 2,848

U.S. Population 1960: 179,323,175

Chevy Volt Sales Figures:

2010: 2,029
2011: 5,000 (approx. figure through 10 months; @ 10/31/11).

U.S. Population 2010: 308,745,538; a 72.17% increase over 1960 figures.

Sales totals for the respective first two model years will be approximately 92% less for the Volt than the Edsel within a approximate 72% larger population. That is a sales performance level well above 99% worse than the previous greatest U.S. auto model failure ever; well in excess of a 10-sigma event.

Oh; and the Edsel was made by a private business, without government (taxpayer) funded R&D, without a government (taxpayer) funded financing arm (Ally Financial); and without a government (taxpayer) funded $7,500 tax credit to buyers.