Consumer Reports Puts GM, Chrysler at Bottom; Chevy Volt 'Doesn't Make Sense'

National Legal & Policy Center ^ | March 1, 2011 | Mark Modica

[jazusamo]

The media may want to take a break from its rooting for General Motors, not to mention its hype surrounding the Chevy Volt. USA Today recently summarized Consumer Reports' ranking of automakers based on performance and reliability. Of the 13 automakers receiving report cards, GM and Chrysler received the worst rankings.

The number one performer according to CR was Honda, followed by Subaru. Strong reliability contributed to the high overall scores. GM was number 12 on the list with only Chrysler receiving a lower score. It should not come as a surprise that the bottom two performers were the automakers that ended up bankrupt and receiving taxpayer funded bailouts.

Almost two years after the bailouts, it appears there are still underlying areas of concern regarding quality and new product launch. It seems the fact that the Obama Administration chose to be advised by bankruptcy experts and Wall Street fat cats when orchestrating bankruptcy proceedings enabled GM and Chrysler to remove obligations from their balance sheets but didn't address the most important reasons for the decline of the two companies, primarily the lack of competitive vehicles.

In the case of GM, there was an additional blow to their reputation with negative commentary on the much-hyped Chevy Volt. GM has had a history of over promising and under delivering regarding the Volt. The public was led to believe that the Volt was a revolutionary, pure electric vehicle that would travel 40 miles on an electric charge and get the equivalent of 230 MPG. The media bought in and touted the Volt proclaiming that it would be the savior for GM. Skeptics were not impressed with what the Volt offered at a price of $41,000 and now reports are surfacing that question the practicality of the Volt and expose the vehicle as not being as environmentally friendly as GM would have us believe.

CNNMoney.com published a ranking of the 12 greenest cars by the American Council for an Energy-Efficient Economy. The Chevy Volt ranked number 12 on the list. Consumer Reports also was not impressed with what the Volt had to offer. Detroit News quotes David Champion, the senior director of Consumer Reports auto testing centers, as stating that the Volt "doesn't really make a lot of sense." Test results seem to support that statement. Champion says the Volt only went 26 miles before the gas engine took over when tested in cold weather. CR had previously reported that the Volt averaged 30 MPG in gas mode. Compare this to the Toyota Prius which gets 51 MPG and starts at $23,000. This is data that hardly seems to justify the $7,500 taxpayer subsidy each Volt sold receives.

The Chevy Volt may end up becoming a huge embarrassment for GM. GM CEO, Dan Akerson, recently upped the ante by claiming that 25,000 Volts will be built in 2011 with expectations as high as 120,000 in 2012. GM has also boasted of pricing power with demand far exceeding supply. Sales figures for the Volt do not support this claim with an abysmally low 281 vehicles being sold in February. That's even lower than January's 321 sold.

If Chevy Volt sales do not eventually live up to the hype, GM and Akerson should rightfully lose much credibility. If this is the case, it should be asked if the initial hype on the Volt was a PR stunt designed to help GM receive a taxpayer funded bailout as well as being a ploy to help support the subsequent IPO. I also have to wonder if the overwhelmingly positive media coverage was influenced by anything other than herd mentality. If retail sales for the Volt do not improve significantly, the time will come for much needed reflection.

[ropin71]

I would say its a chick blocker...kinda like blue blocker sunglasses :p

[USS Alaska]

Oh, yeah, stick this in your as....car...donkey...

[Eric in the Ozarks]

I bet 9 out of 10 Volts made end up owned by some government agency.

[PGR88]

Look on the bright side. Obama is giving traders the chance to short GM stock all over again.

It’s going bankrupt twice!

[Beckwith]

I owned Vettes for 10 years. It draws women like honey — especially when I parked it at the marina.

I have no idea what a “chick blocker” is.

[Lazlo in PA]

I bet 9 out of 10 Volts made end up owned by some government agency.

They are way ahead of you.

http://www.mlive.com/auto/index.ssf/2010/03/chevy_volt_hits_assembly_line.html

[stompk]

I’m waiting for the Ohm.

it was supposed to be released in 2012, but it's met with some unexpected resistance.

[G Larry]

Expect an executive order requiring CR to take Federal money, so they can regulate it!

Consumer advocacy is far to important to be a private enterprise!......../sarc

[G Larry]

Expect an executive order requiring CR to take Federal money, so they can regulate it!

Consumer advocacy is far too important to be a private enterprise!......../sarc

[jazusamo]

I bet 9 out of 10 Volts made end up owned by some government agency.

Yep, there's already been something written about that.

[stompk]

Sure its a crazy number pulled out of his back side; but, lets just multiply that by the $7,500 subsidy, shall we? $900,000,000

DAMN! OUCH! F*CK! _PLEASE!!!!_ someone, vote this loser out.

[stompk]

Buicks are as reliable as any car.

sorry, my browser cut off the punchline, can you reformat for me?

[prisoner6]

Hyundai has come LIGHT YEARS from the introduction of the Pony back in the day. KIA too.

The Sonata looks like a fantastic car, hybrid or not.

The USA plants have me sold. That is if I were buying a new car which we probably won't.

Our '98 Durango has been down for awhile, mostly because I bricked the security system/computer. Don't ask.

In the meantime we've been driving an older Saturn...really GM, did you think this was a good idea? The ergonomics are HORRIBLE!

An older Dodge minivan...We've had several of these and kinda like them. This one is a 6, our FAV was a 1994 4 cyl. I got so good at replacing head gaskets I could do it in WAY less than an hour...in my driveway...in the dark...in the rain.

And then there are the Aveos/Dawoos that Mrs p6's (VERY union and gearhead) brothers love. I have to admit the Aveos get great mileage, are EASY to get into and out of even for my portly self, ride decently and are fairly quiet.

A caution...DO NOT DRIVE THEM IN HEAVY SNOW! One of the most dangerous vehicles in snow I've ever been in IMO!

[FrankR]

[jazusamo]

Lazlo’s ahead of me. :)

[PA Engineer]

Compare this to the Toyota Prius which gets 51 MPG and starts at $23,000. This is data that hardly seems to justify the $7,500 taxpayer subsidy each Volt sold receives.

Look for the union label! ;-)

[stompk]

Look on the bright side. Obama is giving traders the chance to short GM stock all over again.

on zerohedge this morning they were talking about GM stock closing below the IPO price.

[paguch]

“I am still waiting for the article explaining how GM made a profit last year. I assume it is a combination of accounting tricks and government bulk purchases but until someone does the research this is just my speculation.”
Obama gave them a 54 Billion tax break, many they used a little of that.

[paguch]

“I am still waiting for the article explaining how GM made a profit last year. I assume it is a combination of accounting tricks and government bulk purchases but until someone does the research this is just my speculation.”
Obama gave them a 54 Billion tax break, many they used a little of that.

[ropin71]

I was referring to the Volt as a chick blocker vs a magnet...