
IPFS News Link • Economy - Economics USA
GM Puts Volt Into 'Neutral' To Let Sales Catch Up
• by The Associated PressGeneral Motors will suspend production of its Chevrolet Volt electric car for five weeks amid disappointing sales.
A GM spokesman said Friday that the company will shut down production of the Volt from March 19 until April 23, idling 1,300 workers at the Detroit-Hamtramck assembly plant.
"We're taking a temporary shutdown," said GM spokesman Chris Lee. "We're doing it to maintain our proper inventory levels as we align production with demand."
GM sold 7,671 Volts last year, below its original goal of 10,000 cars. The company stopped publicly announcing sales targets last year. It sold 1,023 Volts in February and 603 in January.
"The fact that GM is now facing an oversupply of Volts suggests that consumer demand is just not that strong for these vehicles," said Lacey Plache, chief economist for auto information site Edmunds.com.
Lee said a decision to allow Volt drivers to use carpool lanes in California should help demand. "We're just looking to increase sales, and we see a positive trend going forward," he said.