Short circuit: Chevy Volt to halt production for five weeks, 1,300 workers to be laid off

posted at 4:15 pm on March 2, 2012 by Allahpundit

B-b-but … California just gave it special car-pool privileges.

See now why I thought O was too optimistic when he said he’ll be buying a Volt in five years?

General Motors has told 1,300 employees at its Detroit Hamtramck that they will be temporarily laid off for five weeks as the company halts production of the Chevrolet Volt and its European counterpart, the Opel Ampera.

“Even with sales up in February over January, we are still seeking to align our production with demand,” said GM spokesman Chris Lee.

Lee said employees were told Thursday that production would put on hold from March 19 to April 23…

In 2011, Chevrolet sold 7,671 Volts, but fell short of its initial goal of 10,000.

That euphemism about “aligning production with demand” is the automotive equivalent of Ian Faith talking about Spinal Tap’s appeal becoming more “selective.” The good news: Volt sales actually picked up between January and February this year. The bad news: The monthly numbers climbed from just 603 units to 1,023. To put that in perspective, GM had initially hoped to sell 45,000 Volts in the U.S. in 2012 before backing way, way off that target last month. According to the Detroit News, current stock exceeds 3,500 units, which at their usual sales rates should be enough to get them through through the spring without needing to build a single new unit. Hence the layoffs.

I went over to Green Car Reports to see what they have on this. Nothing yet — but here’s one car buyer’s defense of why he chose a Prius Plug-in instead of a Volt. The Prius retails for $32,760 while the Volt will run you a cool $39,995, but that’s before tax credits. Thanks to Uncle Sam, you get a $7,500 break on the Volt but just $2,500 on the Prius, which still isn’t enough to create a price advantage for Chevy but at least gets them to near parity. Good ol’ government.


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Now that’s the Chevrolet I grew up with in good old UAW controlled Michigan… big talk, horrible results.

ray on March 4, 2012 at 10:00 AM

Maybe we need a couple of innovative options….

1. An adaptor to run the Volt another 50 miles by attaching your iPod to it. Much better, more reliable battery

2. The libs could hook a cable to run their vibrators for 2 hours off it.

Add the free vibrator and it will sell like hot cakes.

txdoc on March 4, 2012 at 10:26 AM

txdoc on March 4, 2012 at 10:26 AM

Perhaps if they also threw in a year supply of birth control.

ray on March 4, 2012 at 10:32 AM

Some people really do act like the physical laws don’t apply to them.

Speakup on March 4, 2012 at 4:24 PM

“GM laying off 1300 due to low Volt sales”

But, don’t worry, America, the OBOZO regime Dept. of Energy has a correction plan. They will provide government motors will BILLIONS in taxpayer money so they can strap SOLYNDRA solar panels to the roof of their eco-nut car to power it. Of course, since the panels weight two thousand pounds, the car now goes no faster than 9 mph and it now costs over $200,000 (AFTER humongous OBOZO-regime tax credits) – but it’s still a dream car for any eco-nut. It will re -named the “OBOZOMOBILE”, and it will represent nearly everything that is wrong with d-cRAT socialism and crony capitalism.

TeaPartyNation on March 4, 2012 at 4:36 PM

They will provide government motors will BILLIONS in taxpayer money

Don’t worry, GM closed out the year with $7 bil in profits and will be paying significant taxes, not to mention the income taxes paid by its employees.

You can come out of the woods now and face reality.

bayam on March 4, 2012 at 6:03 PM

Maybe Barry bamstahhhs da man !!!!

cableguy615 on March 4, 2012 at 7:32 PM

Don’t worry, GM closed out the year with $7 bil in profits and will be paying significant taxes, not to mention the income taxes paid by its employees.

You can come out of the woods now and face reality.

bayam on March 4, 2012 at 6:03 PM

Bayam, you need to stop trying to comment on matters that are beyond your intellectual capability. Did you ever hear of a net operating loss carryforward? Did you remember that in the course of violating a variety of laws and regulations in forcing the GM bankruptcy, the Obama administration allowed GM to keep its 45 billion in NOL carryforwards? How many years of $7 billion in profits can GM run before using up these NOL’s? Personally, I don’t believe GM will pay any taxes before its next bankruptcy.

That’s before you even start counting up the direct costs to the taxpayer for GM so far and the losses that Obama forced on some of the creditors.

Over50 on March 4, 2012 at 7:34 PM

The problem with the Chevy Volt is:

The people that could afford a Chevy Volt still know how to do basic math.

Wallythedog on March 4, 2012 at 10:30 PM

Yes, Sir Dumbass, selling 7,671 cars means “Demand is zero, production is zero.”

DRywall on March 2, 2012 at 6:12 PM

Aw, come on Dave. Remember that the 7,671 cars include a bunch of government propaganda orders plus all of the millionaire Democraps who bought one to support Dear Leader and left them parked downtown with the keys in them and will never buy another one. You know…the Sierra Yacht Club enviro-mentals.

GM is shutting down production for now because they know that continuing demand is non-existent. You know that too…don’t you.

Jaibones on March 4, 2012 at 10:36 PM

I guess it would be too obvious to pump another batch of our money into this boondoggle

You will notice that this will never be a point of conversation amongst the commies

Business genius

Sonosam on March 4, 2012 at 11:34 PM

Did you remember that in the course of violating a variety of laws and regulations in forcing the GM bankruptcy

Yes, you’re an intellectual heavyweight. The GM bankruptcy was “forced” and you actually believe that the assets of a dead industry would have given a bondholders a strong return on investment. After all, I’m sure you can name the companies lined up to buy automotive industry assets at the bottom of a financial crisis. Or even better- perhaps the Chinese would have even acquired a US dealer network.

How many years of $7 billion in profits can GM run before using up these NOL’s? Personally, I don’t believe GM will pay any taxes before its next bankruptcy.

I never stated that GM would pay taxes on its profit. But the company is still responsible for other taxes, including excise taxes. You must be smarter than every analyst on Wall Street based on your understanding of the company’s financials and outlook.

bayam on March 5, 2012 at 9:33 AM

Aw, come on Dave. Remember that the 7,671 cars include a bunch of government propaganda orders plus all of the millionaire Democraps who bought one to support Dear Leader and left them parked downtown with the keys in them and will never buy another one. You know…the Sierra Yacht Club enviro-mentals.

GM is shutting down production for now because they know that continuing demand is non-existent. You know that too…don’t you.

Jaibones on March 4, 2012 at 10:36 PM

Including a bunch to GE.

I never stated that GM would pay taxes on its profit. But the company is still responsible for other taxes, including excise taxes. You must be smarter than every analyst on Wall Street based on your understanding of the company’s financials and outlook.

bayam on March 5, 2012 at 9:33 AM

He’s smarter than you are apparently, since he understands what’s really going on is a shell game. GM is deeply in the red. Trying to white wash that with accounting tricks doesn’t alter reality or the laws of physics.

Which is why the Volt is a failure and a bad joke.

dogsoldier on March 5, 2012 at 11:14 AM

Slut testifies before congress she needs free electricity to charge her V&V (Volt and Vibrator).

Wade on March 5, 2012 at 5:00 PM

Bayam, you need to stop trying to comment on matters that are beyond your intellectual capability. the creditors.

Over50 on March 4, 2012 at 7:34 PM

Please don’t confuse the children with facts.

Wade on March 5, 2012 at 5:01 PM

Edsel? No, but I haven’t made up my mind between Zhiguli and Moskvitch. Far more accurate for the overall situation. Someone earlier suggested Trabant (they spelled it wrong) but I wouldn’t go quite that far. Detroit is at least theoretically capable of building a superior vehicle; East Germany never was.

Lammo on March 5, 2012 at 5:10 PM

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