GM suspends Volt production
The Associated Press
Posted: Mar 2, 2012 5:50 PM ET
Last Updated: Mar 2, 2012 5:49 PM ET
General Motors is suspending production of its Chevrolet Volt electric car for five weeks in the face of lower-than-expected demand. (Bill Pugliano/Getty )
General Motors is suspending production of its Chevrolet Volt electric car for five weeks amid disappointing sales.
A GM spokesman said Friday that the company will shut down production of the Volt from March 19 until April 23, idling 1,300 workers at the Detroit-Hamtramck assembly plant.
"We're taking a temporary shutdown," said GM spokesman Chris Lee. "We're doing it to maintain our proper inventory levels as we align production with demand."
GM sold 7,671 Volts last year, below its original goal of 10,000 cars. The company stopped publicly announcing sales targets last year. It sold 1,023 Volts in February and 603 in January.
"The fact that GM is now facing an oversupply of Volts suggests that consumer demand is just not that strong for these vehicles," said Lacey Plache, chief economist for auto information site Edmunds.com.
Lee said a decision to allow Volt drivers to use carpool lanes in California should help demand. "We're just looking to increase sales, and we see a positive trend going forward," he said.
Volt not a big seller
Although the Volt has not been a big seller, the low-emission vehicle has improved GM's reputation for innovation
The Volt is powered by a 400-pound battery pack that allows the car to travel about 35 miles. After that, a gasoline-powered generator drives the electric motor. The Volt has a base price of about $40,000.
Battery fires broke out in three Volts after safety crash-testing last year, but federal regulators determined that the car was no more risky than vehicles with conventional gasoline engines.
That conclusion put the Volt in the middle of a political fight. Republicans accused federal safety regulators of going easy on the Volt because the government owns a stake in GM after giving it a $50 billion bailout.
The director of the highway safety agency denied giving GM favorable treatment.
Last year, GM offered to buy back Volts from any customers worried about safety. In January, it advised Volt owners to take the cars to the dealer for free repairs - steel was added to plates that protect the batteries.
Share Tools
Latest Toronto News Headlines
- Brampton man charged in wife's slaying
- Peel Regional Police have charged a man with second-degree murder after his wife was found dead in a Brampton home Monday morning. more »
- Driver dies after vehicle struck by tire on Highway 400
- A male driver has died from injuries he sustained in an accident involving a flying tire on Highway 400 on Monday morning. more »
- Toronto could set heat record on Monday
- The heat and humidity are descending on Toronto, with Environment Canada issuing a special weather statement, advising people to take care as the temperature soars to near 33 C. more »
- Toronto archbishop opposes gay-straight alliance bill
- The Archbishop of Toronto spoke out against the Ontario government's plan to introduce anti-bullying legislation that would allow anti-homophobic clubs to be called 'gay-straight alliances.' more »
Top News Headlines
- B.C. police shooting video sparks calls for new probe
- Amateur video of the shooting of a mentally ill Vancouver man five years ago has prompted calls for B.C.'s police complaint commissioner and the Criminal Justice Branch to take another look at the case. more »
- 'Engine shutdown' forced Air Canada jet to land
- A Japan-bound Air Canada Boeing 777 jet had to make an emergency landing at Toronto's Pearson airport on Monday, after one of its engines failed. more »
- CP Rail union, Tories battle over collective bargaining
- The federal Conservatives defended their plan to force striking Canadian Pacific Railway employees back to work as a way to keep the economy on track, while the union representing 4,800 workers said their collective bargaining rights are under attack. more »
- Bullyproof: One classroom confession
- Chadia became physically scarred after incessant teasing. Her story is one of 150 gathered in a video confessional booth at a Quebec school. more »
- 'Engine shutdown' forced Air Canada jet to land
- Canadian Everest climber's body recovered
- Driver dies after vehicle struck by tire on Highway 400
- Brampton man charged in wife's slaying
- Toronto could set heat record on Monday
- Toronto Mayor Rob Ford 'not even dieting anymore'
- Man hits car driven by nun, has iPhone stolen
- Toronto archbishop opposes gay-straight alliance bill
- Truck dangles on overpass after 401 crash in Ajax

