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.

[Paladin2]

"I’m waiting for the Ohm."

Wouldn't it be uncomfortable to have to sit in the Lotus position all the time?

[agere_contra]

LOL!

[Itchen]

Call for pictures “A Dolt in a Volt”

[Paladin2]

I thought it was market impedance.

[70th Division]

And that is about as far as it goes between charges.

[jazusamo]

Here's an article with a couple more linked in it regarding GM accounting:

Is GM Using Inventory to Fudge Earnings?

[arrogantsob]

Nope it is true. I have owned Fords, Chevys, and Buicks and the Buicks were totally reliable. My current one is 6 yrs old and I have never had ONE problem with it. Great car and the last one was a Park Avenue which was also problem free and I loved it. They are rated very highly by consumers for reliability. I like the power as well. And I was stunned when I took a trip from Chicago to Seattle and back to find that I got 31 mpg. Would recommend Buick to anyone.

[RobertClark]

I have no idea what a Volt attracts????

Just think, you could pass the vette by and attract the ilk of Jeanine Garafalo. Yessssireee, sign me up for a volt, or is it milliamp?

[ReverendJames]

But only if it’s above 72F

[RobertClark]

Call for pictures “A Dolt in a Volt”

[prisoner6]

Hmmm...I hesitate to post this and give away the secret...

If you are buying used get a Buick. They were mostly owned by older people who TOOK CARE OF THEM.

Sure there are certain things to stay away from but for a reliable car an older Regal, Century, PA with a non-supercharged V6 engine can't be beat!

Last year my oldest son needed a car and bought a 2005-06 Regal. EVERYTHING on it except sunroof. Dual air, traction control, heated seats and mirrors...WOW!

It has higher miles but was maintained by the book and SHOWROOM condition.

My guess is the mileage - a little under 100k IIRC - came from it (probably) being owned by a salesman or someone who put on highway miles.

Yes it was kinda expensive for the mileage but had new brakes, rotors etcetera and came with a great warranty.

At first I was skeptical but after having it for over a year I am AMAZED! It is as quiet and comfortable as the day it was new. It goes GREAT in the Winter around here.

Bottom line...I have had several expensive "luxury" vehicles as well as hot rods and sports cars. In the luxury class it smoke my XJ's and Mercedes!

And while the handling is excellent for a family car, I wouldn't autocross it.

[Erasmus]

The Volt once had potential, but its lifetime will be short.
By 2013, their current model will be the Amp.

[buzzer]

“By 2013, their current model will be the Amp.”

The Ampera is GMs european (Opel/Vauxhall) edition of the volt. It’s the same chassis with a more “european” look.
http://www.youtube.com/watch?v=Q9VjvOP9kqM

[GonzoGOP]

The Volt once had potential, but its lifetime will be short.

There will never be a used Volt. The battery is only good for 5 years and costs $10,000. It is covered under the warranty for 10 years but after that you would be better off scrapping the car than buying a replacement battery. And owning the car without the new car warranty would be insane due to the cost of the battery replacement.

The Volt makes as much economic sense as a Ferrari. IOW none what so ever.

[cameraeye]

Has this man yet picked ONE winner of anything that didn't lose, break, fail or even work? When he mentioned the Steelers, I watched to see if they would lose. Yep, he sure can pick’em!

[pallis]

When gas hits $10 dollars a gallon, Moped will be the way to go. Obama Motors will be obsolete.

[Beckwith]

Now you are a witty person, Robert.

[OldMissileer]

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

They also had one named the Farad but they had a capacity problem.

[Lazlo in PA]

Buicks are as reliable as any car.

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

Hey now. Let lay off Buick. I have owned Buicks on and off and they are pretty nice running and riding cars. I have a '93 Roadmaster Estate that takes little maintenance over the foreign stuff I have laying around. You can't beat a small block 350 rear driver. The idiots on the American version of Top Gear gave one the durability test. Filled it with water and drove it a mile. After it drained, they drove it 50 miles to it's destination. Can't beat that.

[RightOnline]

"I’m waiting for the Ohm.

Me too!!! Watt's the projected release date? Color me amped about it!