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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

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RE: For Pete's sake
By Integral9 on 1/3/2013 9:44:39 AM , Rating: 2
You need to update your sources. Your source is severely out-dated.

At the bottom of the tables it says:

Sources: Federal Reserve, Treasury, FDIC, CBO, White House Note: Figures as of November 16, 2009


RE: For Pete's sake
By theapparition on 1/3/2013 3:39:09 PM , Rating: 2
Here's a little more accurate reporting, even if it's from GM's website.

So almost half has been repaid, with the US Treasury owning 500,000,000 shares. To break even, that would require stock price to be about $50 per share. Currently running $30, so at most, if sold today, that would cost the taxpayers 10 billion.

Seriously? I wasn't happy how the bailout happened either.....but are we're really quibbling over 10 billion. To save the American industry.

Let's not forget that GM could have borrowed the money to stave off this restructuring........but no they couldn't. That's because the financial markets collapsed and they couldn't lend money anymore. Where are all the outrage from the hundreds of billions given to the financial sector?

And for the Ford apologists, I saw them in Washington with their hand out as well. That is until it became unpopular. Ford was very lucky in that they financed everything before the collapse. Kudos to them for that, no doubt, but stop making them as some magnanimous entity trying to fight the noble battle. If possible, they would have snatched up any extra cash laying around.

And lastly, every expert pretty much agreed that GM going through liquidation would wipe out many parts suppliers. Ford stood before Congress and noted that they would be severely impacted by the loss of GM. That's right. Trying to protect their prime competitor. To put this in perspective, imagine Apple standing before Congress arguing that they need Samsung to stay in business.

But instead it's more fun to argue what's already done on message boards, especially when done by people who have no idea on economics.

Arguing about 10 billion when other companies are getting those same billions in subsidies is disturbing.

RE: For Pete's sake
By 91TTZ on 1/3/2013 5:52:53 PM , Rating: 2
Seriously? I wasn't happy how the bailout happened either.....but are we're really quibbling over 10 billion. To save the American industry.

For one, the cost was far more than that. That was only taking into account new money that was borrowed from American taxpayers to bail them out. It ignores all the outstanding shares of GM that people owned that became worthless overnight when they declared bankruptcy.

Also, your post seems to imply that this $10 billion has saved the American industry. However, it's still possible that GM can go out of business again in the future. It has only propped them up after they've fallen.

"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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