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Chevy Volt May Sales Dismal - Ad Spending Ineffective
National Legal & Policy Center ^ | June 1, 2012 | Mark Modica

Posted on 06/01/2012 11:16:03 AM PDT by jazusamo

General Motors reported that Chevy Volt sales for May came in at a paltry 1,680. To put this in perspective, GM sold 29,579 Chevy Malibus during the month. The funny thing is, I do not recall seeing as many TV ads for the Malibu as I have for the Volt. While GM's ad strategy (which has seen the company discontinuing advertising on Facebook and the Super Bowl) has received much attention, auto journalists and analysts do not seem to want to question the reason why GM is spending such a disproportionate amount of money advertising a vehicle that is losing money for the company and its shareholders.

GM did not think that spending $10 million annually on Facebook was leading to enough additional sales to justify the expense. Based on the amount of ads I see on the Volt, I would guess that the company is spending at least that much per month on advertising for the Volt. The ad cost per Volt sold must be in the thousands of dollars. Why is GM continuing to be so free with marketing dollars for the Volt as it makes a commitment to improve efficiency of its advertising budget and why isn't anyone questioning the move?

The decision by GM to continue to hype the Volt despite the low demand can not be based on economics. I am aware that Volt owners seem to love their cars, good for them. But let's face it, the car did not live up to the hype and sales rates are no where near enough to meet GM's goal of selling 45,000 this year in the US. The fact remains that the Volt is representative of the Obama Administration's commitment to green energy initiatives that have cost taxpayers billions of dollars. Shareholders of GM deserve to know if the company has its priorities straight as share price continues to suffer and the company appears to have political motivations by focusing on a "green" vehicle that is costing both taxpayers and shareholders money.

GM continues to function as Government Motors with odd priorities and shady deals that seem to award cronies like CFO Dan Amman's wife at advertising agency, Mother New York. Shareholders should be concerned that GM seems to have an agenda that does not place profits ahead of politics. And the continuing dismal sales of the Chevy Volt warrant congressional debate regarding the wasteful spending of taxpayer dollars to promote vehicles and technologies that the majority of Americans do not seem to want or can not afford. The Chevy Volt, not unlike the Obama green energy initiatives, is more and more appearing to be a misguided and costly idea. Neither is helping with the country's economic, environmental, or energy issues.

Mark Modica is an NLPC Associate Fellow.


TOPICS: Business/Economy; Government
KEYWORDS: bailout; chevyvolt; gm; governmentmotors

1 posted on 06/01/2012 11:16:16 AM PDT by jazusamo
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To: jazusamo

How many people are willing to spend $45 K for a special version of compact car? If you are enviro one can buy a Prius as penance for a much lower price.


2 posted on 06/01/2012 11:18:24 AM PDT by C19fan
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To: jazusamo
My personal experience with batteries (even rechargeable ones) over 50 years is that they suck and are expensive.

Useful, of course, but the technology has just not made enough progress for me to drop >$10,000 on one.

3 posted on 06/01/2012 11:18:30 AM PDT by Paladin2
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To: jazusamo

Dolt.


4 posted on 06/01/2012 11:19:14 AM PDT by Wagonboy (STOP GLOBAL WHINING!)
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To: jazusamo

5 posted on 06/01/2012 11:20:51 AM PDT by AngelesCrestHighway
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To: Red Badger

Ping.


6 posted on 06/01/2012 11:20:51 AM PDT by Army Air Corps (Four Fried Chickens and a Coke)
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To: jazusamo

7 posted on 06/01/2012 11:22:43 AM PDT by AngelesCrestHighway
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To: jazusamo
If only GM hadn't stopped advertising on Facebook, things would've been different.

< /sarc>

8 posted on 06/01/2012 11:22:52 AM PDT by Joe 6-pack (Que me amat, amet et canem meum)
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To: jazusamo

Even if it was free, I wouldn’t allow one of those firetrap/POS in my garage.


9 posted on 06/01/2012 11:27:18 AM PDT by carriage_hill (All liberals & most demoncraps think that life is just a sponge bath, with a happy ending.)
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To: C19fan
The sales figures for the Volt are showing there's not nearly as many people as projected that are willing to spend that kind of money on it.

The sales so far this year shows they won't even sell 50% of the 45,000 projected.

10 posted on 06/01/2012 11:27:18 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

The ads for the Dolt are lousy to boot.


11 posted on 06/01/2012 11:32:42 AM PDT by razorback-bert (I'm in shape. Round is a shape isn't it?)
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To: jazusamo
Oh Come On!!!

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12 posted on 06/01/2012 11:35:46 AM PDT by ZX12R (FUBO GTFO 2012 !)
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To: Army Air Corps

They way things are going, we may all be driving Volts, as that will be the only car allowed to use the highways, per the EPA...................


13 posted on 06/01/2012 11:43:20 AM PDT by Red Badger (Think logically. Act normally.................)
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To: jazusamo
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14 posted on 06/01/2012 11:45:04 AM PDT by baddog 219
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To: All

Have they sold enough to count with one finger yet?


15 posted on 06/01/2012 11:46:45 AM PDT by newnhdad (Where will you be during the Election Riots of 2012/2013?)
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To: AngelesCrestHighway; carriage_hill

Last time I checked a grand total of 1 Chevy Volt had caught fire. And this happened to a test vehicle after a collision test.


16 posted on 06/01/2012 11:49:36 AM PDT by wideminded
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To: jazusamo

Everyone in Obama’s administration should be forced to buy a Volt, especially Secretary of No Energy Chu. (Maybe we’d get rid of some of them in the ensuing explosions.)


17 posted on 06/01/2012 11:59:10 AM PDT by beethovenfan (If Islam is the solution, the "problem" must be freedom.)
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To: jazusamo

Obviously they need to double the price to meet the revenue goal. That should do the trick.


18 posted on 06/01/2012 12:03:34 PM PDT by Newtoidaho (Fight organized crime. Vote out all incumbent Democrats!)
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To: jazusamo
New Chevy Volt incentive -- Buy a Chevy Volt... get 10 years of fire insurance of your house for free.

Or... buy a Volt, get a Vette (the only GM car I'd buy) free...

19 posted on 06/01/2012 12:16:26 PM PDT by ExCTCitizen (If we stay home in November '12, don't blame 0 for tearing up the CONSTITUTION!!)
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To: wideminded; AngelesCrestHighway

“...after a collision...”

That’s one too many for me. Sure, it’s not a Ford Pinto, but it’s possibly a ticking time-bomb, if left uncorrected. Who knows what’s being hidden from the public about those electric cars’ safety? I’ve read about rescuers fear of cutting hi-po cables with ‘Jaws of Life’ in removing crash victims, etc.

Just saying.


20 posted on 06/01/2012 12:29:43 PM PDT by carriage_hill (All liberals & most demoncraps think that life is just a sponge bath, with a happy ending.)
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To: wideminded

“Last time I checked a grand total of 1 Chevy Volt had caught fire”

I have a particular fixation with the Volt, and its drawbacks (heck, I’m paying for it). So here goes, concerning fire:

At least 3 Volts caught fire after crash testing, per NHTSA:
http://green.autoblog.com/2011/11/26/nhtsa-releases-chevy-volt-fire-investigation-details/

As a result, GM recalled the ENTIRE FLEET...and even offered a buyback of the cars.http://autos.yahoo.com/blogs/motoramic/gm-recalling-chevy-volts-prevent-battery-fires-164320241.html

Note some of the language in the article: “toughen the protection around its battery pack”, “prevent fires”, “adding steel plates around the battery pack”, “add a sensor to watch coolant levels for the battery’s temperature controls and a new cap to prevent coolant overfilling”...sounds like there may have been a fire hazard.

There are also two house fires, in which a Volt is a possibility - one in Connecticut and one in North Carolina.

In both cases, GM has been quick to say it wasn’t the Volt...but the actual car is only part of the equation. Nobody knows for sure why these houses caught fire; and, electrical overload has not been excluded.

And the Volt charging cord has been suspected by others of being dangerous: http://www.thetruthaboutcars.com/2012/03/chevrolet-volt-120v-charging-cords-to-be-replaced-by-general-motors/

And, in general, battery powered cars have had problems. Ever hear of the GEM electric truck? Here’s one on fire: http://www.youtube.com/watch?v=-nYQBCg8IQY&feature=player_embedded

Do you remember Neil Young’s ‘LincVolt’ that caught on fire?

A few months ago, GM had an explosion at a battery testing facility...they immediately put out a statement that it wasn’t a Volt battery. O...K...but a rechargeable battery still exploded, and caused $3 to $5 million in damage.http://www.autoblog.com/2012/04/18/gm-battery-lab-explosion-cost-could-reach-5m/

Heard of Fisker? They recalled 200 cars because of fire fears...but the details of this make me shudder. Fisker’s recall said some hose clamps in the cooling system were put on wrong. If you work on cars, you know that all rubber hoses will eventually fail...and it is not encouraging to hear that hose maintenance is required to prevent disaster.

We will undoubtedly hear more about fire problems with the Volt, as the fleet ages. More cords will melt during charging. More batteries will vent flammable gases as the cases age. More critical cooling components for the batteries will fail.

Alot of stuff has to go right, for a Volt not to catch fire...when today’s Volts become ten year old beaters, that is going to be a problem.

Just my humble opinion, of course....but I predict a fleet buyback by 2016.


21 posted on 06/03/2012 3:24:26 PM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: jazusamo
Shareholders of GM deserve to know if the company has its priorities straight

Why should post-bailout shareholders be treated any better than the pre-bailout sharholders?

22 posted on 06/04/2012 11:48:33 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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