Triple Pundit: 3 Things GM Needs To Consider As It Halts Chevy Volt Production
As the automaker shuts-down the plant for the 2nd time this year, why they need to embrace the political debate and confront the long term environmental impact in the interim.
August was an all-time record month for the Chevy Volt. We don’t have the final tally yet, but GM said the company expects the Volt’s August sales, which includes both 2012 and 2013 models, to top 2,500, a 35 percent increase over July sales. Yet, apparently the sales of the Volt are still not strong enough and GM will close the Detroit-Hamtramck assembly plant, where the Volt is made, for four weeks, from September 17 through October 15.
GM, according to Detroit Free Press, disputed reports that the plant shut-down is connected to disappointing sales and explained it needs to upgrade equipment for the forthcoming production of the 2014 Chevrolet Impala. At the same time, William Grotz, a GM spokesman told Bloomberg that “it’s just a matter of matching supply with demand and gearing up for the production of the Chevy Impala.”
This is the second time this year GM has closed this plant temporarily. In March, GM halted the production of the Volt for four weeks and laid off 1,300 workers due to sluggish sales. As we wrote here GM needed not just to match supply to demand, but also to recalibrate its Volt strategy, and while sales have significantly improved since then, the fact that the plant is going to be closed again is an indication that GM still has some work to do. So while the manufacturing line workers will be at home, it might be worthwhile for GM’s executives to consider the following points…
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Original article by Raz Godelnik. Originally published by Triple Pundit, republished with kind permission.