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Volt Sales Drop In January

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On: Thu, Feb 9, 2012 at 9:55AM | By: Chris Weiss


Volt Sales Drop In January

The Chevy Volt is starting to look like one of those Miss America winners that get rocked by a scandal during their year of reign and fall rapidly from grace. The Volt got to do its best pageant wave when it took home all kinds of awards and accolades in late 2010 and early 2011. Then, during the remainder of 2011, it was one 'scandal' after another: poor sales, battery fires, government investigations, lowered expectations, etc.

This year isn't starting off any better. In addition to Congressional hearings on the Volt fires, the Volt's sales are off to a sluggish start.

Volt sales were cut in half between December and January. GM sold just 603 Volts in January, its worst month since last August when Volt production was limited due to factory retooling.

Prior to this month, the Volt was on a big upswing. Month-over-month Volt sales had increased for four straight months, leading to a total of 1,529 units sold in December. Despite the fact that GM fell well short of its goal of 10,000 Volts in 2011, the series hybrid appeared poised for a solid 2012. But the ongoing investigations into Volt battery fires and the publicity surrounding it really hurt January sales. GM North America President Mark Reuss called the bad publicity a component of the Chevy Volt's sales problems.

It's a bad start for 2012, a year in which GM originally planned to build 45,000 to 60,000 Volts. The company has abandoned such ambitious goals and plans to sync production with consumer demand. Given the declining demand seen last month, we wonder if GM will be able to exceed the magical 2011 number of 10,000.

A study released by J.D. Power and Associates earlier this week had both good and bad news for the Volt. It showed that gas mileage was the most important factor motivating consumers when looking at new vehicles. The Volt was among the vehicles cited as benefiting from the focus on gas mileage. On the other hand, the study also indicated that the high price of the Volt was the main factor leading customers to cross the car off their lists.




Comments

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Stephy21 | 10:29AM (Fri, Feb 10, 2012)

I think the Volt is a good car but the price is just to expensive for a lot people to swallow. If GM would consider lowering the price they might make a few more sales.


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Sami18 | 12:28PM (Fri, Feb 10, 2012)

One of the big reason the Chevy Volt's sales dropped was because of the battery problems and i dont think customers think that can be fixed. They might have offered a solution to the problem but that doesn't mean it wont happen again under certain circumstances and that's what most people are afraid of.



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