backtop


Print 83 comment(s) - last by Cheesew1z69.. on Jan 4 at 2:02 PM

Dealerships don't want to spend more on tools needed to service the Volts since sales for most are down

Select Chevrolet dealerships around the U.S. are ditching the Volt after General Motors (GM) hiked up the price of tools to service the vehicle.

Last year, dealerships spent $1,800 to $2,800 on tools that are required to service each Volt plug-in hybrid. However, GM has raised the price of these tools to $5,100. The reason? A battery-repowering tool that removes and ships sections of the Volt's huge 435-pound battery for repair instead of shipping the whole thing costs dealerships about $4,735. This makes up the bulk of the tool costs while a few others are needed as well.

Due to this price hike, some dealerships have decided to stop selling the Volt altogether. Some say their overall Volt sales just don't justify the additional cost.

Allyn Barnard, owner of Jim Barnard Chevrolet in Churchville, New York, is among those who feel that way. He has only sold five Volts since the vehicle's launch in late 2010/early 2011, and doesn't see the point in paying over $5,000 for the tools needed to service them.

"Going forward, the profitability would be really hard for us to justify the expense of the repair tools," said Barnard.

The Volt may have had a bumpy start with a few production shutdowns and issues with lithium ion battery fires during National Highway Traffic Safety Administration (NHTSA) testing, but sales of the Volt have been very impressive over the last year. During the first seven months of 2012, GM sold 10,666 Volt extended range electric vehicles for an increase of 270% compared to the first seven months of 2011.

However, Chevrolet then had a low November sales month due to low inventory. Chevrolet sold 1,519 Volts in November 2012, which represented a 33 percent increase over November 2011. But the number of cars sold in November was roughly half the number sold in October and September when the company sold 2,961 and 2,851 Volts respectively.

Chevrolet said this is a good thing, though, because it means demand is higher than expected

As of December 2012, General Motors had sold 20,828 Volts for the year. 

Despite these excellent numbers (Nissan was hoping to sell 20,000 Leafs in 2012, but fell way short), about 70 percent of Volt sales are generated by the 300 top-selling dealerships. There are about 2,614 dealerships certified to sell the Volt.

Source: Automotive News



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: For Pete's sake
By chromal on 1/2/2013 8:29:56 PM , Rating: 2
Don't throw a rock in a glass house. Folks who don't drive or own cars could just as easily protest how much public money and resources go to supporting and subsidizing individual car owners by virtual of the road network itself, urban and suburban space given over to vast seas of parking spaces, etc.


RE: For Pete's sake
By Ringold on 1/3/2013 2:42:32 AM , Rating: 4
No, in fact, they couldn't complain, since taxes are levied against fuel and car ownership in a myriad way that supports highway spending. Local and, to an extent, the federal governments general funds top up that spending, but folks who don't drive cars absolutely still use them indirectly. That milk didn't come from a cow hidden behind the grocery store, after all. It traveled, probably hundreds of miles.

No such public benefit of equal scale is derived from helping that guy be an eco-smug tool.


RE: For Pete's sake
By Chernobyl68 on 1/3/13, Rating: 0
RE: For Pete's sake
By ebakke on 1/3/2013 1:01:40 PM , Rating: 3
quote:
And for everyone who says the should not have helped GM, go find out how many times the airlines have been bailed out by congress.
So if I'm against the GM bailout, I have to be for the airline bailouts? Try again.


RE: For Pete's sake
By DockScience on 1/3/2013 3:59:21 PM , Rating: 2
How about this.

You live without anything delivered by truck for a year, I will live without a government subsidized electric car.

After all, both have equal value, right?


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki