WSJ: GM bancruptcy and Volt future | FerrariChat

WSJ: GM bancruptcy and Volt future

Discussion in 'General Automotive Discussion' started by TheMayor, May 29, 2009.

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  1. TheMayor

    TheMayor Nine Time F1 World Champ
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    Feb 11, 2008
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    By Keith Johnson
    What will General Motors’ impending bankruptcy filing mean for the electric Chevy Volt?


    The U.S. government first encouraged, then ordered, automakers to make more fuel-efficient cars—like the much-anticipated Volt. But after the expected bankruptcy reorganization, the U.S. government will own 70% of GM. As the majority shareholders, they will want GM return to solvency – and that means making cars people want to buy: affordable, profitable, big-selling cars. The Volt doesn’t fit.

    For now, and despite all the financial storm clouds, GM executives are defending the Volt’s role in the carmaker’s future. That was the official line last month when the automaker unveiled its latest blueprint for survival.

    Volt vehicle line executive Frank Weber says the Volt—and electric cars in general—are key to increasing energy independence, giving heart to Volt fans everywhere.

    Departing GM vice-chairman and Volt patron Bob Lutz is also keeping up the cheerleading. He took the Volt to the David Letterman show to counterattack derogatory comments from the talk-show host. Yesterday, he told the Automotive Press Association that a “smaller, leaner” GM will be best-equipped for the future.

    But the price tag for the Volt, set for production next year, is still the same: About $40,000 before rebates.

    GM’s bankruptcy will let it shed a lot of legacy costs and become competitive again. But not even the restructuring will make the pricey Volt a mass-market success.

    And the new owners–the government and taxpayers–will have to come to terms with this tension. GM can focus on making mass-market cars that sell well and abandon the Volt. Or it can carry on with the Volt and hope either costs come down or consumers suddenly change their habits and run out to buy a $40,000 compact sedan.
     
  2. boxerman

    boxerman F1 World Champ
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    Sean
    Or Gm could sell 100,000 volts per year and still make an entire range of other cars for people to buy.
     
  3. anunakki

    anunakki Seven Time F1 World Champ
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    Obama will subsidize them further. They will sticker for high 20s, low 30s and the tax payers will cover the rest.

    Watch.
     
  4. frefan

    frefan F1 Veteran

    Apr 21, 2004
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    Alternative energy costs more money. Thats why its alternative. Govt will have to offer tax credit rebates to bring the costs back down to be competitive with conventional cars.
     
  5. buckminster

    buckminster Formula Junior

    Aug 18, 2005
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    Nicholas Raftis
    http://content.usatoday.com/communities/driveon/post/2012/08/gm-suspends-chevy-volt-production-over-slow-sales/1#.UDwbGGhSQ1c

    General Motors is halting, for a month, the manufacture of its well-known but seldom-sold Chevrolet Volt extended-range electric car, according to trade publication Automotive News.

    It would be the second interruption in production for the Volt, which can go 38 miles on battery power before needing a recharge from its gasoline engine or via a plug-in.

    Automotive News, citing unnamed sources, reports the Detroit-Hamtramck plant will suspend production from Sept. 17 until Oct. 15. Leaders of the UAW told the plant's 1,500 union workers about the scheduled downtime last week, the source said.

    A GM spokesman declined to comment. "We don't comment on production schedules," the spokesman told the News. "We continue to match supply and demand."

    Although the plant had another temporary shutdown earlier this year, Volt demand has actually been healthier. GM sold 10,666 Volts through July, way up from the 2,870 sold during the same period a year earlier.
     
  6. TheMayor

    TheMayor Nine Time F1 World Champ
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    I can't believe this was originally posted in May of 2009. :)
     
  7. Jedi

    Jedi Moderator
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    Mar 18, 2008
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    Somewhere I heard that the Chevy Volt is a PR stunt and won't make GM any money ;)

    :D:D

    Jedi
     

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