A Jolt to General Motors Volt
GM has briefly halted manufacture of its Volt electric automobile, the corporation declared Friday. Imagine that! Even with taxpayer subsidies, higher gas prices and other incentives by the government the Chevy Volt is fast becoming Chevrolet’s Edsel.
General Motors revealed to workers at one of its locations it was ceasing manufacture of the infamous electric vehicle for five weeks as well as temporarily laying off 1,300 personnel. Is that laying off with or without pay? I’ll bet Mitt Romney’s $10K the workers are getting paid.
A GM spokesperson asserted manufacture of the Volt would likely restart April 23.
“We needed to maintain proper inventory and make sure that we continued to meet market demand,” GM spokesman Chris Lee stated.
In a free market society supply and demand naturally “maintain proper inventory” levels. The problem is the Chevy Volt is not what consumers what, it’s what Barack Obama and his ilk have demanded. All the incentives, all the tax breaks in the world are not forcing people to cough up well over $30K for a Volt. If you don’t make what consumers want you don’t sell your product.
Lee observed that sales from the Volt had been greater in February compared to what they were in January, and added that California recently made a decision to permit the electric car to be eligible for a High Occupancy Vehicle (HOV) lanes within the state. January is typically a very slow month right after the holidays.
Furthermore, it’s odd how GM dealers were busy advertising Cadillac’s, Chevy Cruze and Chevy pickup trucks throughout the Internet. The Cruze is typically the alternative to the Volt, without the huge cost and burden of charging your car to drive it.
The Wall Street Journal reported what consumers are looking for, what is selling and singled out the Chevy Cruze vs. the Chevy Volt.
The Volt and the similarly sized Chevy Cruze may not appear to be rivals, considering the hybrid costs around twice as much. But they are, and the success of the conventional Cruze, and other cars like it, compared to the advanced Volt illuminates important trends in the auto market.
One is that most car buyers have specific demands for relevant, fuel-saving technology. What sells is better mileage and performance for, at most, a modest price premium to older technology. Barring a huge run-up in fuel prices, it could take 20 years, or more, for a Volt buyer to earn back through fuel savings the roughly $20,000 extra cost compared with a Cruze. That math matters to consumers who put cost concerns ahead of emotions and self-image.
The Chevrolet Volt comes under criticism from Republicans in Congress as a result of records of its batteries catching on fire in the course of tests. Barack Obama gave the electric car a vote of confidence in a speech to the United Auto Workers union this week, guaranteeing he’d purchase a Volt “five years from now, when I’m not president anymore.”
However, Republicans argue the Volt had been forced through the Obama administration for political factors as opposed to consumer demand.
“Is the commitment to the American public or is the commitment to clean energy, that we are going to get there any way we can?” Rep. Mike Kelly (R-Pa.) questioned in a hearing inside the House in January in regards to the Volt’s documented battery fires.
“When the market is ready … it won’t have to be subsidized,” Kelly said.
Chevrolet has contended the controversy concerning the Volt has grown to be too political.
“We did not develop the Chevy Volt to be a political punching bag,” General Motors CEO Daniel Akerson testified before Congress in the same January hearing. “We engineered the Volt to be a technological wonder.”
Chevrolet has desired to provide a lift to the general public impression of the Volt, launching an advertisement in January attaching the Volt with the attempt to scale back reliance upon overseas oil.
“This isn’t just the car we wanted to build,” a narrator says in the commercial over footage of Volts being manufactured in Hamtramck, Mich. “This is the car America had to build.”
There is always a problem in a free society, a capitalist free market society when big government decides to influence individual habits for an outcome they want. This is loss of freedom if we are forced to behave in a certain way. Increased mileage standards under rules set forth by government forces car makers to manufacture what government deems necessary and when costs go up those products don’t sell.
Wake up America, don’t be fooled by the crony capitalism, big government ideas to force feed you an ideology by way of consumer goods. Fight Socialism, fight Marxism, fight the Obama administration.
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