chevy volt

Steve Carmody / Michigan Radio

Today’s announcement that General Motors plans to spend $300 million in Michigan is good news not only for GM employees, but also for auto parts suppliers.

GM had previously announced the automaker's plans to invest $240 million in its Warren transmission plant. The plant will make the electric drive unit for the next-generation Chevy Volt. 

GM

GM announced today that the price of a Chevy Volt will drop by $5,000:

The 2014 model will start at $34,995...

If consumers include federal tax credits ranging from $0-$7,500 (depending on individual tax liability), pricing could start at $27,495.

GM: Best November since 2007

Dec 3, 2012
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General Motors says it had its highest November sales since 2007.

GM’s sales are up 3.4 percent over last year. Passenger cars are up 19-percent overall, with Buick bumping up 22 percent, and Cadillac sales up 30 percent.

Steve Carmody/Michigan Radio

DETROIT (AP) - General Motors is offering big discounts to boost sales of the Chevrolet Volt, an electric car that struggled to attract buyers until its price began dropping early this year.

Discounts run as high as $10,000 per Volt, according to figures from TrueCar DOT com, an auto pricing website. They include low-interest financing and subsidized leases.

Reuters reports on the numbers behind the Volt - "There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce."

General Motors

General Motors says sales rose 10-percent in August, compared to the same month a year ago.

The Detroit car company also broke several sales records.

GM says it got a noticeable bump from advertising aired during the Olympics.

Sales of the Chevy Cruze, Volt, Spark and Sonic hit an all-time high.

Those are all small cars.  

The Chevy Cruze, a compact car, even beat Honda's perennial top-performer, the Civic, in August.

User IFCAR / Wikimedia Commons

In mid-September, General Motors will temporarily close the Detroit-Hamtramck plant that makes the Chevrolet Volt for about a month.

There's a lot of excitement around electric vehicles. But so far sales have not been great.

Michigan Radio’s auto beat reporter Tracy Samilton decided to get some firsthand experience driving two electric vehicles - the Nissan Leaf and the Chevy Volt.

JW: So while we are calling them electric cars there are some fundamental differences in how they work.

TS: The Leaf is a pure electric vehicle it only runs on the battery and when it runs dry you have to recharge the battery to get more out of the car. And the Volt has a battery, and you run on that as an electric car for about 35 miles, and then after that it has a generator that runs on gasoline that provides more electricity so the car can keep running. So Chevy calls it an electric car with extended range.

JW: And after spending that week with the Leaf and the Volt, what did you think?

TS: Well, they’re two totally different cars and I had two totally different experiences as you can imagine. When I got the Volt, that week that they gave it to me I actually have a vacation arranged in Pennsylvania. Well because it has the extended range I could actually take the volt to the camp sight, some 400 and some miles away. And I plugged it into my cabin, which had electricity. You know most of this was done on the gasoline but I was able to get it recharged in my cabin.

When it comes to the Leaf, it’s a different kind of vehicle, I could not have done that.

user Mariordo / wikimedia commons

GM is planning to extend a production slowdown for its extended-range electric car, the Chevy Volt.

Last month, Michigan Radio's Tracy Samilton reported that GM was halting production of the Volt for five weeks in March and April to reduce inventory, in part because of lower-than-anticipated demand.

Samilton wrote:

The car has been highly praised, but it’s expensive.  Even with a $7,500 federal rebate, the Volt still costs about $32,000.  Meanwhile, people can buy a highly fuel-efficient regular car for much less – including GM’s own Chevy Cruze, which costs about $19,000.

Additionally, the Volt facility was scheduled to be shut down for two weeks in July---a common practice for car factories---but GM has now extended that period to three weeks, again citing a need to reduce inventory.

But according to the Associated Press, "a spokeswoman says the company sold a record number of the electric cars in March and may cancel the extra week if strong sales continue."

-John Klein Wilson, Michigan Radio Newsroom

General Motors will temporarily suspend production of its electric car with extended range, the Chevy Volt, to manage excess inventory on dealer lots. 

The decision puts about 1,200 employees at GM’s Detroit Hamtramck plant on layoff. 

The Volt assembly line will shut down between March 19th and April 23rd, to give dealers time to sell the Volts they already have.    

Demand for the Volt has been lower than GM anticipated. 

The car has been highly praised, but it’s expensive.  Even with a $7,500 federal rebate, the Volt still costs about $32,000.  

General Motors North American President Mark Reuss weighed in on his boss's testimony Wednesday before a Congressional subcommittee. 

The hearing was entitled, "Volt vehicle fire: What did NHTSA know, and when did they know it?"

Reuss says, "It was a huge opportunity for us, yesterday, and the whole company is proud of Dan [Akerson - GM's CEO].  But more importantly it gives the whole country a look into what this company can be."

General Motors CEO Dan Akerson strongly defended the safety of the Chevy Volt during his testimony before a House subcommittee Wednesday.    

The hearing was entitled "Volt vehicle fire:  What did NHTSA know, and when did they know it?"   

Last June, a fire broke out in a Chevy Volt, three weeks after it had been damaged in a crash test.

The National Highway Traffic Safety Administration opened an official investigation into the fire risk of the Volt in late November, after performing two other tests on the Volt's battery alone.

(photo by Steve Carmody/Michigan Radio)

The government ended its safety investigation into the Chevrolet Volt on Friday after concluding that the Volt and other electric cars don't pose a greater fire risk than gasoline-powered cars.

The agency began studying the Volt last June after a fire broke out in one of the cars three weeks after it was crashed as part of safety testing. Two other fires occurred later related to separate safety tests, and NHTSA opened an official investigation into the vehicle on Nov. 25.

The agency and General Motors Co. know of no fires in real-world crashes.

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In her post on Forbes, auto writer Joann Muller says the idea that Chevy Volt batteries are unsafe is pure poppycock... balderdash... hooey... or as she puts it:

Hogwash. GM and its battery partner, LG Chem, have tortured that battery to death. They’ve abused it, mutilated it, jarred it, twisted it, and even punctured it with nails. There’s nothing wrong with the Volt or its battery that can’t be fixed with a couple of minor tweaks.

The minor tweaks are coming after a government safety test found that the batteries can catch fire seven days to several weeks after a crash. No fires were reported in real-world circumstances.

The company announced today that it will add parts to ensure the batteries will not catch fire.

Muller reports that the government has crashed a Volt with the new parts - no fire yet - but they'll give it another week to see if one starts up:

In a statement, NHTSA said  it crashed a Volt retrofitted with GM’s newly designed steel reinforcement device in a side-pole impact test on December 22. The results of that crash test showed no intrusion into the vehicle’s battery compartment, and no coolant leakage was apparent. As a precaution, NHTSA has monitored the crashed vehicle since the test and will continue to do so for one more week. But the agency said the preliminary results of the crash test indicate that GM’s fix should solve the problem.

General Motors says it will modify all of its Volt models. The announcement comes after federal side-crash tests resulted in three battery fires.

The fires occurred up to three weeks after the tests when coolant leaked into the cars' batteries.

There has been no recall of  GM’s electric Volt, but the automaker is voluntarily asking owners to bring their cars in for a fix.

"We've added some structure that allows the load to be spread, so it doesn't cause intrusion into the battery pack or coolant leak," says Mary Barra,  GM’s senior vice president of Global Product Development.

GM sold about 8,000 Volts in the U.S. over the past two years. No fires have been reported by customers.

Volt owners will be notified when dealers get the repair parts – probably in February. GM says the modification should not take more than a day and a loaner car will be provided.

Associated Press

Michigan native and GOP Presidential candidate Mitt Romney is drawing fire from Michigan Democrats for remarks he made on a radio program this week.

At the very end of a radio interview Romney called the Chevy Volt “an idea whose time has not come.”

There was little context for the remark, but Democrats seized on it. They say it’s part of a pattern of Romney “rooting for the US auto industry to fail.”

More subpoenas issued in Wayne County probe

The FBI has issued more subpoenas in their investigation into Wayne County government. The FBI's investigation was launched last October following an uproar over a $200,000 severance payment given to former Wayne County development director Turkia Mullin.

The Detroit Free Press reports the latest subpoenas are seeking the following information:

- Records for the county's purchase of the Guardian Building, an Art Deco masterpiece that officials spent tens of millions of dollars renovating before moving in 2009.

- Contract and payment documents involving Destination Marketing Group, a Plymouth-based tourism marketing firm that had a county contract to talk to at-risk teens about mental illness.

 -Contracts and e-mails related to the county's dealings with three vendors of Health Choice, the county's health insurance program for small employers and working people.

Snyder says he was bullied after signing anti-bullying bill

After signing the state's first anti-bullying legislation into law yesterday, Governor Rick Snyder reflected on how he was bullied in school. More from the Muskegon Chronicle:

Gov. Rick Snyder is famously “one tough nerd,” but he said Tuesday that wasn't always the case.

“I was a victim of bullying,” Snyder said just after signing into law a plan requiring schools to develop anti-bullying policies, surrounded by families of children who took their lives after being harassed.

“While I didn't experience it to the same degree as these families, I was bullied because I was a nerd. I was beaten up in elementary school and middle school. I was pushed around in high school and even in college.”

Coolant leak cause of Volt battery fires?

The National Highway Traffic Safety Administration is investigating Chevy Volt battery fires after some of their test vehicles caught fire weeks after crash tests. Now a source says the Volt's coolant system was likely the cause of these delayed fires.

From the Associated Press:

The liquid solution that cools the Chevrolet Volt's batteries is the likely cause of fires that broke out inside the electric car after government crash tests, a person briefed on the matter said...

The coolant did not catch fire, but crystallized and created an electrical short that apparently sparked the fires, said the person, who asked not to be identified because the findings are not final.

Recently, GM's CEO Daniel Akerson said the company would buy back Volts from any owners who think the cars are unsafe.

staff / GM MEDIA

NEW YORK (AP) - The top executive at General Motors says the company will buy back Chevrolet Volts from any owner who is afraid the electric cars will catch fire.

CEO Daniel Akerson told The Associated Press Thursday that the cars are safe. But he says GM would buy back the vehicles to keep customers happy. Three fires have broken out in Volts after side-impact crash tests done by a federal safety agency. The fires happened seven days to three weeks after the tests.

Akerson also says that GM could recall more than 6,000 Volts now on U.S. roads, if necessary, and fix them once the company and safety regulators figure out what caused the fires.

GM says no Volts involved in real-world crashes have caught fire.

Chevrolet kicks off the Woodward Dream Cruise weekend with a parade of classic Chevy vehicles alongside 50 Chevy Volts - GM's modern flagship electric car with an extended range gas engine.

Chevy is celebrating its 100th anniversary this year.

Spokesman Rob Peterson says fifty Volts will cruise quietly down Woodward Avenue on battery power – alongside some classic Chevys with their big V-8 engines.

user paul (dex) / Flickr

LANSING, Mich. (AP) - General Motors Co. will add 2,500 jobs at a Detroit-area factory that now makes electric cars, investing $69 million so the plant can make two new Chevrolet sedans.

The factory, which straddles the border between Detroit and the small enclave of Hamtramck, now makes the Chevrolet Volt and its European counterpart, the Opel Ampera.

But GM announced on Wednesday that it will upgrade the factory so that it can run around the clock making the new Malibu midsize car and a revamped version of the aging Impala large sedan.

About 1,200 of the jobs will be new hires, since GM still has to recall about 1,300 laid-off workers in the U.S.

But in Michigan, which has among the highest unemployment rates in the nation, 1,200 new jobs is big news.

GM announced on May 10 that it would create or keep about 4,000 jobs by investing $2 billion in 17 factories in eight states.

The Detroit-Hamtramck announcement adds to previous expansion announcements in Bowling Green, Ky.; Toledo, Ohio; and Flint and Bay City, Mich.

"Filling this plant with new work is very satisfying because GM is dedicated to helping rebuild this city," Mark Reuss, the company's North American president, said in a statement.

GM said last week it would shut the plant down for four weeks starting in June, reconfiguring it to increase Volt and Ampera production from 16,000 cars per year to 60,000 next year in order to meet strong demand.

The shutdown also will let GM add equipment to build the 2013 Malibu midsize sedan at the plant starting next year. The car also will be built in Kansas City, Kansas.

In addition, GM said it will build a long-overdue new version of the Impala at the Detroit-Hamtramck plant.

GM will stop producing two other big cars at the factory, the Cadillac DTS and Buick Lucerne, later this year.

Insurance Institute for Highway Safety

The Insurance Institute for Highway Safety gives the Chevy Volt and the Nissan Leaf top ratings for safety in crash tests.  The results could ease any lingering concerns people might have about the safety of electric cars.

Russ Rader, a spokesman for the Insurance Institute for Highway Safety, says the results show that customers don't have to trade safety for environmentally friendly electric cars.  And the heavy batteries in the cars actually make them safer.

"We can have environmentally friendly, green vehicles and not give up the safety advances that we've made in the bargain… Even though they are small cars in their dimensions, they are considerably heavier than other small cars weighing as much as some midsize or even large cars.  And that is a safety advantage."

Car companies say the huge batteries inside electric cars shut down in the event of a crash to greatly reduce the risk of an electrical fire.

Both the Leaf and the Volt cost more than most similar sized small cars. But Rader says as the price of gas goes up, and the cost of producing the cars goes down, electric cars will become more economical.

(Ford Motor Company)

Rising gasoline prices are apparently spurring interest among car buyers in smaller, more fuel efficient vehicles. Gas prices in Michigan are hovering around $3.50 a gallon. In California, the average price for a gallon of gas is nearly $4. 

George Peterson is the president of Auto-Pacific, an automotive marketing research firm. He says gas prices are helping boost interest in small cars. 

“There’s a tremendous amount of interest, especially with the new small cars on the road that are very, very good.  The Hyundai Elantra, the Ford Focus, the Chevrolet Volt, the Chevrolet Cruze, the upcoming Honda Civic.  All of those are very fuel efficient.  Very good small cars.”  

Still, Peterson says  SUVs remain the leading segment in the auto sales market.

“The largest segment of vehicles still selling is Sport Utility Vehicle.  Now most of those are cross-over SUVs.  So they’re much more fuel efficient than the old gas hog SUVs that we had before.   If you think about sales, SUVs are king, followed by small cars, followed by mid-sized cars.”   

Peterson says the last time gas prices spiked over $4 a gallon, many drivers traded in gas guzzling SUV’s for smaller, more fuel efficient cars. But, he says many of those drivers expressed buyers’ remorse, after missing their larger, more powerful rides.

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In its April auto issue, the magazine Consumer Reports calls the Chevy Volt is a "tough sell."

It's not the kind of review GM has been accustomed to after the car was released with much fanfare.

The Volt was named "Car of the Year" at the Detroit Auto Show.

The Detroit News says that harsh review from Consumer Reports questions whether the car makes "economic sense."

David Champion, the senior director of Consumer Report auto testing center said:

"When you are looking at purely dollars and cents, it doesn't really make a lot of sense. The Volt isn't particularly efficient as an electric vehicle and it's not particularly good as a gas vehicle either in terms of fuel economy. This is going to be a tough sell to the average consumer."

The car costs around $40,000, but with a government tax credit (a credit some lawmakers want to turn into a rebate) the cost comes down to around $33,500.

The criticism came from the car's range in cold weather. The Volt's electric motor range is 40 miles under normal driving conditions, but that range dropped significantly when Consumer Reports tested the car in Connecticut this winter - the range dropped to 25 to 27 miles on electric power alone.

A GM spokesman said his range was better in cold weather. Again, from the Detroit News article:

GM spokesman Greg Martin noted that it's been an extremely harsh winter — and as a Volt driver he said he's getting 29-33 miles on electric range. But he noted that in more moderate recent weather, the range jumped to 40 miles on electric range or higher.

Other criticisms of the Volt were its 5-hour charging time, and a heating system that leaves your hands and feet cold.

The magazine gave the Volt praise for its acceleration and for its "taut yet supple ride."

USA Today reports that in the April auto issue, Consumer Reports gives foreign automakers Honda and Subaru top honors with Ford positing the "largest gain" in rankings overall.

General Motors

For people who follow the car business, the big news coming from the North American International Auto Show on Monday was no surprise.    

Still, GM employees enthusiastically cheered and applauded the announcement.

The Volt is GM’s extended range electric car.  GM has big plans riding on the electric car’s small frame.  In fact, the Volt is more than a car for GM. It’s an entire strategy.

General Motors formally announced today that it is investing more than 160 million dollars in plants in Flint, Bay City and in Defiance, Ohio.


 The three plants produce components for the Chevy Volt, Cruze and a third unnamed Chevrolet small car.


 Bill Jordan says GM’s announcement is an early "Christmas present.”   Jordan is the president of United Auto Workers local 599.    He says GM’s investment shows workers are doing the job right.