chevy volt may kill gm,US HMMR OWNERS
#1
07-20-2011, 10:45 PM
chevy volt may kill gm,US HMMR OWNERS
its sucking the life out of gm,subsidies for a ded dud car!!! i wonder how many of the 30000 have been built!!! 3600 projected sales!
Chevy Volt Sales Slump, GM Asks for another Government Handout
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By Robert Romano
NetRight.Daily
Posted Apr 04, 2011 @ 10:08 AM
Washington —
Chevy Volt Sales Slump, GM Asks for Government Handout
By Robert Romano – Recent reports find that General Motors (GM) is lobbying for the passage of legislation by Michigan Senator Debbie Stabenow that would turn a $7,500 electric vehicle tax credit into a rebate that will be available to all consumers at the point of sale. It’s been dubbed “Cash for Clunkers II”.
Right now, the $7,500 tax credit can only be redeemed at the end of the year when taxes are filed, and are applicable to purchases of the Chevrolet Volt. Apparently, Chevy is not pleased with its sales — 321 units sold in January and 281 in February — out of 30,000 cars made for 2011, and a planned 45,000 to be made in 2012.
At that rate, just 3,600 of the cars will be sold this year, 12 percent of the supply. Will the additional 45,000 even run off the assembly line?
The asking price of $41,000 for the Volt, or $33,500 even with the tax credit is the likely culprit for the poor sales. Plus the fact that the car can only go 100 miles before needing to be recharged hardly makes it an attractive investment. Put simply, consumers are being asked to pay more for something that is of less quality.
That alone might explain why GM thinks the current tax credit is insufficient. But it’s only half the story.
Since GM’s initial public offering in November, the government sponsored automaker has been desperate to boost overall sales on a monthly basis. As such, GM boosted buyer incentives for the past four months. GM’s incentive spending averaged about $3,663 per vehicle in January, and $3,732 in February, more than $1,100 over the industry average.
According to the CarConnection.com, “That’s increased GM’s market share — albeit at the expense of image, resale value, and even company profits — oddly, at a time when most other automakers have admitted that such a strategy doesn’t make long-term business sense.”
So, in March the additional spending incentives came to an end, with GM announcing that it would be returning buyer incentives to the industry average. Unfortunately, according to MSNBC’s Dan Carney, “the word in the industry is that sales slumped in March once the incentives expired.”
That does not bode well for GM. Apparently, the only thing keeping sales figures up has been massive buyer incentives — which, considering the U.S. Treasury’s 33 percent stake in the company, are effectively another form of government subsidy.
So, they can’t keep giving the incentives out because they are destroying what it left of the GM brands and it is becoming increasingly hard to hide the fact that they are losing on each car because they are, in effect, rebating back their profits to consumers in order to move the metal.
So, they have had to cut the incentives, tank the sales and now are throwing the ball back into Barack Obama and Congress’ court with Cash for Clunkers II to boost sales of the Volt. They are hoping that Uncle Sam cutting a $7,500 check at the point of sale will make a difference.
Whether it would or not, this just another bailout for GM — better known as Government Motors — and the UAW that helped to bring the company to its knees in the first place. If the Chevy Volt cannot be sold on its own in a profitable manner in the marketplace, then taxpayers should be under no obligation to give GM corporate subsidies for an inferior vehicle.
Robert Romano is the Senior Editor of Americans for Limited Government.
Read more at NetRightDaily.com: http://netrightdaily.com/2011/03/chevy-volt-sales-slump-gm-asks-for-government-handout/#ixzz1IZE6488
Chevy Volt Sales Slump, GM Asks for another Government Handout
Yellow Pages
Find whatever you're looking for
with Totally Local Yellow Pages
Search provided by local.com
Featured Business »
By Robert Romano
NetRight.Daily
Posted Apr 04, 2011 @ 10:08 AM
Washington — Chevy Volt Sales Slump, GM Asks for Government Handout
By Robert Romano – Recent reports find that General Motors (GM) is lobbying for the passage of legislation by Michigan Senator Debbie Stabenow that would turn a $7,500 electric vehicle tax credit into a rebate that will be available to all consumers at the point of sale. It’s been dubbed “Cash for Clunkers II”.
Right now, the $7,500 tax credit can only be redeemed at the end of the year when taxes are filed, and are applicable to purchases of the Chevrolet Volt. Apparently, Chevy is not pleased with its sales — 321 units sold in January and 281 in February — out of 30,000 cars made for 2011, and a planned 45,000 to be made in 2012.
At that rate, just 3,600 of the cars will be sold this year, 12 percent of the supply. Will the additional 45,000 even run off the assembly line?
The asking price of $41,000 for the Volt, or $33,500 even with the tax credit is the likely culprit for the poor sales. Plus the fact that the car can only go 100 miles before needing to be recharged hardly makes it an attractive investment. Put simply, consumers are being asked to pay more for something that is of less quality.
That alone might explain why GM thinks the current tax credit is insufficient. But it’s only half the story.
Since GM’s initial public offering in November, the government sponsored automaker has been desperate to boost overall sales on a monthly basis. As such, GM boosted buyer incentives for the past four months. GM’s incentive spending averaged about $3,663 per vehicle in January, and $3,732 in February, more than $1,100 over the industry average.
According to the CarConnection.com, “That’s increased GM’s market share — albeit at the expense of image, resale value, and even company profits — oddly, at a time when most other automakers have admitted that such a strategy doesn’t make long-term business sense.”
So, in March the additional spending incentives came to an end, with GM announcing that it would be returning buyer incentives to the industry average. Unfortunately, according to MSNBC’s Dan Carney, “the word in the industry is that sales slumped in March once the incentives expired.”
That does not bode well for GM. Apparently, the only thing keeping sales figures up has been massive buyer incentives — which, considering the U.S. Treasury’s 33 percent stake in the company, are effectively another form of government subsidy.
So, they can’t keep giving the incentives out because they are destroying what it left of the GM brands and it is becoming increasingly hard to hide the fact that they are losing on each car because they are, in effect, rebating back their profits to consumers in order to move the metal.
So, they have had to cut the incentives, tank the sales and now are throwing the ball back into Barack Obama and Congress’ court with Cash for Clunkers II to boost sales of the Volt. They are hoping that Uncle Sam cutting a $7,500 check at the point of sale will make a difference.
Whether it would or not, this just another bailout for GM — better known as Government Motors — and the UAW that helped to bring the company to its knees in the first place. If the Chevy Volt cannot be sold on its own in a profitable manner in the marketplace, then taxpayers should be under no obligation to give GM corporate subsidies for an inferior vehicle.
Robert Romano is the Senior Editor of Americans for Limited Government.
Read more at NetRightDaily.com: http://netrightdaily.com/2011/03/chevy-volt-sales-slump-gm-asks-for-government-handout/#ixzz1IZE6488
Last edited by drtom; 07-20-2011 at 10:48 PM.
#4
07-21-2011, 06:48 AM
They should have went with the HX. That's what happens when politicians dictate corporate policy . . . disaster.
#5
07-21-2011, 08:22 AM
They need better advertising. Seems like a pretty good car to me, and IMHO it's the right way to do a hybrid.
Even the author of that article doesn't understand the way it works, this is just plain wrong.
It does seem a bit over priced, but honestly I don't know how it compares to other cars in a similar price range.
Plus the fact that the car can only go 100 miles before needing to be recharged hardly makes it an attractive investment.
It does seem a bit over priced, but honestly I don't know how it compares to other cars in a similar price range.
#6
07-21-2011, 08:52 AM
chevy cruze,18000 in march!
the cruze at apx 24000/40 mpg sounds like a winner for gm. junk the volt and push cruze.
18000 sounds a little better than 300!!
meantime ford sold 53000 f150 in march,shows what people want.
ford really otta be making hummers,,,,they are the truck people
what a motor,,,
Brook Park makes two V-6 engines, a 3.7-liter model that's the base engine for the F-150 and the premium EcoBoost 3.5-liter V-6. The EcoBoost engine uses direct fuel injected and twin turbochargers to get large V-8 levels of power and performance out of a more fuel-efficient engine.
Ford spokesman Richard Truett said the automaker has only been able to get a small number of EcoBoost F-150s to dealerships in recent weeks, so Ford hasn't been able to meet demand for the premium engine.
"It's the fastest-turning vehicle in our system. It comes in and goes out right away," Truett said.
theres a video abt the ecoboost,astonishing!! ill try to find link or u can. fantastic engine,makes over 350 hp with 3.5 liter!! how bout that in h3!!
18000 sounds a little better than 300!!
meantime ford sold 53000 f150 in march,shows what people want.
ford really otta be making hummers,,,,they are the truck people
what a motor,,,
Brook Park makes two V-6 engines, a 3.7-liter model that's the base engine for the F-150 and the premium EcoBoost 3.5-liter V-6. The EcoBoost engine uses direct fuel injected and twin turbochargers to get large V-8 levels of power and performance out of a more fuel-efficient engine.
Ford spokesman Richard Truett said the automaker has only been able to get a small number of EcoBoost F-150s to dealerships in recent weeks, so Ford hasn't been able to meet demand for the premium engine.
"It's the fastest-turning vehicle in our system. It comes in and goes out right away," Truett said.
theres a video abt the ecoboost,astonishing!! ill try to find link or u can. fantastic engine,makes over 350 hp with 3.5 liter!! how bout that in h3!!
Last edited by drtom; 07-21-2011 at 08:59 AM.
#7
07-21-2011, 09:33 AM
I think the volt is a good concept. I spend about an half an hour in the morning and half an hour in the evening to drive 7 miles each way in Washington DC traffic. The range of the car on it's battery would WELL more than cover the commute. The electricity costs to charge it up would certainly cost less than paying for gas.
BUT
It seems like most things GM has been doing recently, they screw the pooch on the execution.
-Advertising for the car has been weak.
-The cost is WAY too high to make the concept work.
It may very well cost that much to manufacture… and maybe the only answer to that is time and technological advances.
Most people don’t care about being green. They care about saving money. Saving 30% (arbitrary guess… I’m not getting that number from anywhere) on your fuel cost doesn’t do you a $h!t-bit of good, if your car payment is double that of an equivalent gas car.
BUT
It seems like most things GM has been doing recently, they screw the pooch on the execution.
-Advertising for the car has been weak.
-The cost is WAY too high to make the concept work.
It may very well cost that much to manufacture… and maybe the only answer to that is time and technological advances.
Most people don’t care about being green. They care about saving money. Saving 30% (arbitrary guess… I’m not getting that number from anywhere) on your fuel cost doesn’t do you a $h!t-bit of good, if your car payment is double that of an equivalent gas car.
Last edited by beitodesstrafe; 07-21-2011 at 09:37 AM.
#8
07-21-2011, 02:56 PM
Ask the typical person on the street the technical differences between a Volt, a Prius, and a Leaf. Ask them if they know the volt is motortrend's car of the year. Not to say it doesn't have drawbacks, price being the biggest, but how can they expect to sell 10's of thousands without an aggressive ad campaign? Most people don't know what's different about it, if they know it exists at all.
#9
07-21-2011, 05:39 PM
, if they know it exists at all.
im betting they know,if they sell them at chevy stores,where they also sell the cruze. the cruze is cheaper but even at givaway prices and govt kickbacks for the volt the cruze outsells the volt
60:1!!! the cruse can get 42 they say and the volt on gas,30+,maybe 35.
shoppers probably look at a turbo 4 small engine and its a simple decision. the volt could be "guessy" batt life,cost, and just what does it cost to charge??, to go 40 miles. even at 40 mpg it better be a lot less than 4 bucks huh!!
could the motor be 50 hp? thats twice a big lawn tractor and electric hp aint cheap.
but 50 hp dont do much does it. anybody know the $ to charge?
i had a 2.2 turbo probe,great car and gave up to 32 mpg. the cruze has 1.4 turbo and 42. from a ford man that sounds like a winner. some day ill be looking,and my son will disown me!!
60:1!!! the cruse can get 42 they say and the volt on gas,30+,maybe 35.
shoppers probably look at a turbo 4 small engine and its a simple decision. the volt could be "guessy" batt life,cost, and just what does it cost to charge??, to go 40 miles. even at 40 mpg it better be a lot less than 4 bucks huh!!
could the motor be 50 hp? thats twice a big lawn tractor and electric hp aint cheap.
but 50 hp dont do much does it. anybody know the $ to charge?
i had a 2.2 turbo probe,great car and gave up to 32 mpg. the cruze has 1.4 turbo and 42. from a ford man that sounds like a winner. some day ill be looking,and my son will disown me!!
#10
07-21-2011, 06:54 PM
I attended a Chevrolet "Main Street" event in Dallas... this is where you can drive any Chevy product back to back against the competition.... but you were not allowed to drive the Volt without first driving the Cruze.
It seems to me that GM is using the Volt as a means of getting buyers in the showroom to buy the Cruze, and they really don't want to build too many of the Volts since they lose money on everyone of them.
If gas gets up to $4 plus per gallon, Chevy will have a stampede for the Volt. But, at least in Texas, gas prices are always about $3.50 for the cheap stuff per gallon.
The car guys say the Volt is a great vehicle... I wanted to drive one but wasn't allowed since I didn't drive the Cruze... which is basically a rebadged Daewoo or Dahaitsu. There are some cars that I will never buy and many of those have GM or Chevy emblems on the nose even though they are rebadged foreign crap... whereby GM has swapped jobs in America for profits that benefit only shareholders.
Back to the Main Street event... it was awesome... driving a new Camaro SS confirmed it was no quicker than either of my 2002 models... and the 'vette is a joy... except the older I get, the tougher it is getting in and out of it.
It seems to me that GM is using the Volt as a means of getting buyers in the showroom to buy the Cruze, and they really don't want to build too many of the Volts since they lose money on everyone of them.
If gas gets up to $4 plus per gallon, Chevy will have a stampede for the Volt. But, at least in Texas, gas prices are always about $3.50 for the cheap stuff per gallon.
The car guys say the Volt is a great vehicle... I wanted to drive one but wasn't allowed since I didn't drive the Cruze... which is basically a rebadged Daewoo or Dahaitsu. There are some cars that I will never buy and many of those have GM or Chevy emblems on the nose even though they are rebadged foreign crap... whereby GM has swapped jobs in America for profits that benefit only shareholders.
Back to the Main Street event... it was awesome... driving a new Camaro SS confirmed it was no quicker than either of my 2002 models... and the 'vette is a joy... except the older I get, the tougher it is getting in and out of it.