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Chevy Volt Production Again Halted

Posted by Steve Markowitz on March 3, 2012

The New York Times reported that General Motors halted production for the Chevy Volt for the third time in less than one and a half years.  This time production will be stopped for four weeks with 1, 300 workers being laid off at the Volt Detroit factory.

During the month of February, General Motors managed to sell only 1, 023 of the plug-in Volts.  These low sales indicate that the Chevy Volt is a failure in the marketplace, especially when compared to the Toyota Prius that sold 20,589 vehicles during the same month.

It doesn’t take a rocket scientist to determine why the Volt has failed.  Forgetting for a moment any aesthetic or mechanical issues that buyers might have, the numbers just don’t add up.  The Volt cost $41,000, approximately double the price of the least expensive Prius.  In addition, its overall fuel economy is at best marginally better, and under some conditions worse than that of the Pirus.

The Chevy Volt is subsidized by the US government, its largest shareholder, who gives buyers a whopping $7,500 tax credit.  In addition, with gas prices over four dollars a gallon in many states it is evident that the Chevy Volt is a modern-day Edsel.  However, GM will not admit failure even with this indisputable evidence.  In making the announcement of the plant closing, a GM PR executive said “Sales for the Volt in February were significantly better than January, and we anticipate that to continue.  We see good things in the future, but right now we had to make this adjustment.”  This gentleman not only works for the President, but offers the same type of political doubletalk.

Once again, President Obama who has been an ardent supporter of the Chevy Volt, has proved inept in picking winners and losers in the marketplace.  More to the point, the President’s vision for green energy is totally out of sync with economic realities.  However, that will not stop this President from continuing to waste the people’s money on his pet projects.   Like the PR puppet that works for General Motors, the President seems to believe that if he says it, it becomes reality.  Yikes.

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