Tuesday, June 18, 2013

Green Fail: GM Pins Another $4000 To Chevy Volts In Attempt To Get Anyone To Buy Them...

Let's add the incentives up: $4000 from GM, $7500 from federal taxpayers, $2000 from may states. That comes to about $14,000  per vehicle and GM reportedly is selling them for a large loss
General Motors has announced a $4,000 rebate (or $3,000 and a four year, zero interest loan from government-owned Ally Financial) on the slow-selling Chevy Volt. The company had a choice regarding how to deal with an excess supply of Volts that is growing faster than demand. GM could have, once again, temporarily halted production until inventory (currently at about a 6 month supply) came down to reasonable levels. It instead chooses to lose more millions of dollars by spending on incentives designed to manufacture demand that otherwise is practically nonexistent.

The much-hyped Chevy Volt was originally presented by GM as a green wonder-car that would be a savior for the company with sales expected in the 10,000 per month range by now. Almost three years after first hitting showrooms, the Volt now sees sales stabilizing at a dismal rate of approximately 1,500 per month. That's roughly one Volt every two months for each Chevy dealership.

No comments: