Chevrolet Halts Volt Production for Five Weeks Amid Weak Sales
General Motors will suspend Chevrolet Volt output at Detroit-Hamtramck for five weeks from 19 March 2012, temporarily laying off 1,300 workers as inventories outpace demand.
General Motors will halt production of the Chevrolet Volt for five weeks starting 19 March 2012, citing slow sales and high inventory. The shutdown at Detroit-Hamtramck will temporarily lay off around 1,300 workers until assembly resumes on 23 April.
The move follows a sluggish start to 2012 for the plug-in hybrid. Chevrolet sold only 603 Volts in the US in January and 1,023 in February, far short of the pace needed to hit GM’s annual target of 45,000 units. At current rates, the company would sell fewer than 15,000 Volts in the US this year. The Volt also missed its 2011 goal, with 7,671 units sold against a planned 10,000.
GM said the production pause is necessary to align output with actual demand. Despite a modest sales increase in February, inventories have grown, prompting the company to act before stock levels climb further. The Detroit-Hamtramck plant, which builds the Volt alongside other models, will be idled for the duration, with affected employees placed on temporary layoff.
Inventory and market challenges for the Volt
The Volt’s slow sales have been attributed to several factors. The car’s price, around $43,000 in the US before incentives, puts it well above conventional hybrids such as the Toyota Prius. The Volt’s complex plug-in hybrid system, which allows limited pure-electric driving before switching to petrol power, has drawn praise for innovation but struggled to find a mass-market audience at its price point.
Impact on workers and plant operations
The shutdown affects about 1,300 hourly and salaried workers at Detroit-Hamtramck. GM has said employees will return when Volt production resumes in late April. The plant also produces other models, but the Volt’s unique platform limits the ability to reassign staff during the pause.
Volt’s future and GM’s response
Chevrolet has reiterated its commitment to the Volt, pointing to positive owner satisfaction and ongoing technical improvements. The company will monitor sales and inventory closely after production restarts. The five-week pause is intended as a correction rather than a sign of retreat from the plug-in hybrid segment.
For more on the restart of Volt production later in 2012, seeChevrolet Restarts Volt Production in Detroit After Inventory Pause
