GM Halts Volt Production Again as Inventory Rises Ahead of New Model
General Motors will suspend Chevrolet Volt and Opel Ampera production for several weeks in 2012 to address unsold stock and prepare for the next-generation Volt.
General Motors will halt production of the Chevrolet Volt and its European sibling, the Opel Ampera, for several weeks in 2012 as the company works through unsold inventory and prepares for a generational change.
The Detroit-Hamtramck assembly plant, which builds the Volt and Ampera, will be idled from 19 March to 23 April. GM notified 1,300 workers of the temporary layoff as it seeks to bring supply in line with demand. At the end of February, GM held 6,300 Volts in inventory, equating to a 154-day supply at current sales rates, well above the 60-day industry norm.
Sales of the Volt had failed to meet expectations. In January 2012, just 603 units were sold in the US, with a modest rebound to 1,023 in February. For 2011, US Volt sales totalled less than 8,000, far short of the 60,000-unit global target GM set at launch. The Opel Ampera faced similar challenges in Europe. High sticker prices and comparisons with all-electric rivals like the Nissan Leaf made the plug-in hybrid a difficult sell, especially as federal investigations into battery fire risks dampened consumer interest, even though regulators later cleared the Volt of safety concerns.
Preparing for the next-generation Volt
While high inventory was the immediate cause, GM also cited planned upgrades at the Detroit-Hamtramck plant to accommodate the next-generation Volt. The factory was being prepared for the new 2016 Volt and the Cadillac CT6, with construction and engineering changes scheduled for the summer. The production pause allowed GM to complete these changes and begin pre-production for the updated models.
The new Volt, expected to launch later in 2015, would offer more interior space, a sleeker design and an electric-only range of up to 50 miles, an improvement over the outgoing model’s 38-mile capability. Pricing for the next-generation Volt had not been announced at the time of the production halt.
Impact on workers and inventory
The temporary shutdown affected 1,300 workers at the Detroit-Hamtramck plant. GM said it would use the production pause to balance supply with demand and to clear unsold Volts and Amperas from dealer lots. The company also faced pressure from critics over the Volt’s price and lingering perceptions around battery safety, despite the closure of the federal probe.
- Chevrolet Volt: US sales under 8,000 in 2011, 1,023 sold in February 2012
- Opel Ampera: European sales also under target, production paused with Volt
- 1,300 Detroit-Hamtramck workers temporarily laid off
GM’s move to halt Volt and Ampera production in 2012 reflected both the challenge of matching supply to demand for plug-in hybrids and the need to retool for a new generation. The company aimed to restart production once inventories were reduced and plant upgrades completed.
For more on the Volt’s production history and subsequent restarts, seeChevrolet Restarts Volt Production in Detroit After Inventory Pause
