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Why Can't Akerson Come Clean on Chevy Volt Fiasco?
National Legal & Policy Center ^ | August 23, 2012 | Mark Modica

Posted on 08/23/2012 10:02:49 AM PDT by jazusamo

Some truths are so obvious that they cannot be denied. But that doesn't stop General Motors and politically-motivated cheerleaders for the Chevy Volt from trying. In the case of the Volt, the truth is that this car has been a dismal failure when considering the amount of hype and taxpayer money that has been spent to produce the supposed green wonder-car. Let's review just how wrong GM CEO, Dan Akerson, has been regarding sales projections for the Volt and how he refuses to take accountability for GM's blunders.

Let's start by looking at Akerson's plans and projections for the Volt back in January of 2011, two months after GM's much-hyped IPO. From a Bloomberg report at the time, Akerson touted sales expectations for 2011 of 25,000 for the Volt. An even rosier sales projection for 2012 was made as Akerson's plans for selling 120,000 Volts were revealed to a non-sceptical media. From the article, '"We want to stay sharply focused on technology," Akerson told analysts at Deutsche Bank's Auto Industry Conference in Detroit on Jan. 11. "We don't want to be caught flat-footed as we were in 2008."' And, "Akerson told his executive team in early December that he wanted to boost Volt production and explore adding its drive system to several models with a goal of at least tripling sales of vehicles with that technology by mid-decade from the 2012 target."

So, how close did Akerson's sales projections come? GM sold 7,671 Volts in 2011 and 2012 sales are currently at 10,666, tracking about 19,000 for 2012. Not even close to Akerson's planned sales of 25,000 and 120,000, respectively! Even worse than Akerson's ineptness at predicting the popularity of the Volt is his refusal to take accountability for the blunder. Another Bloomberg article from June of this year has Akerson, in Obamian fashion, blaming Republicans for the Chevy Volt disappointment. The article states Akerson, "said that politics have affected Volt sales. GM reorganized under a U.S.-backed bankruptcy in 2009, which has been criticized by Republicans, including Mitt Romney, the party's presumed presidential nominee." Akerson also stated that he thinks GM will still sell 35,000 to 40,000 Volts this year, an unlikely feat.

It is time for GM and Akerson to take some accountability for the Volt missteps. It is not the fault of Republicans, or any other critic of the Volt, that the vehicle is so far off of initial sales projections. The simple fact that other plug-in vehicles are selling even more dismally than the Volt gives evidence that GM has put a major focus on a segment which does not have mass-market appeal.

In June of this year, Ford sold only 89 plug-in electric cars and Mitsubishi only 33. Of course, you probably weren't very aware of these competing vehicles, as Ford and Mitsubishi have not spent the disproportionate amount of time and money marketing and producing their plug-in cars as GM has. It is also very disingenuous for Akerson and GM to blame low Volt sales on politicians while they tout the fact that they are selling more electric cars than competing vehicles like the Nissan Leaf. Wouldn't it stand to reason that the Volt would be selling less than competing vehicles if only the Volt was being criticized for political reasons? It is equally disengenous to boast of Volt sales of less than 2,000 a month as "successful" based on weak comparisons when projections were for sales in the range of 10,000 per month by now for a car that was to be a "game changer" and "the future of GM."

We must come to the conclusion that GM, specifically Akerson, has been dishonest in touting the potential for the Volt and the reasons for the low sales, or GM management is simply that inept that they were so far off in sales projections for the vehicle. GM may have had an ulterior motive in hyping a vehicle that had no chance of reaching the high goals set for it. The use of the Volt as a "halo" car has been admitted by GM management. Essentially, GM used the Volt to lure consumers into showrooms to bait and switch them to a conventionally powered vehicle.

An Edmunds Insideline piece explains the strategy and quotes GM North America President, Mark Reuss, as he admits the ploy. From the article:

Meanwhile, Chevrolet's bet-the-farm project, the Volt, will continue to gain sales, Reuss said. But perhaps even more important for Chevrolet is the car's "technical halo." Drawn by their curiosity about the Volt's plug-in hybrid technology, consumers come to showrooms. And after they check out the Volt, they stay around to look at, drive and maybe buy a Cruze, he said.

"People want to see the Volt," he said. "Not everyone wants to buy a Volt." Reuss acknowledged that in a down economy, not everyone can afford a car that goes for $40,000 (before a federal tax credit of up to $7,500).

But those Volt visits are leading to Cruze sales, he said. Reuss said he believes the same thing will happen with the plug-in hybrid Cadillac ELR, "a beautiful car" that could perk up sales of conventional Cadillacs.

The use of halo cars by manufacturers is common. What has been unquestioned, however, is whether taxpayer money should be used to produce a vehicle, under the guise of helping America end foreign oil dependence, only to have that money go to help sell conventionally-powered vehicles. And GM's "bet-the-farm" focus on the Volt has left it at a competitive disadvantage as they have lost ground in the more important mainstream segments of the industry. The Chevy Malibu is no where to be found on recent top-selling car lists as cars like the Honda Accord, Toyota Camry, Hyundai Sonata, Nissan Altima, and Ford Fusion all make the grade.

Time and again Akerson and GM management have had the opportunity to come clean on the Chevy Volt. All they had to say was something like, "the Volt is a niche vehicle that holds promise for future development of electric vehicles that may one day build upon the platform to offer an alternatively-powered vehicle that has mass-market appeal." Instead, they have been deceptive and over-touted the potential for the car. Worse yet, they played the political card in blaming Republicans for the failure at a time that President Obama campaigns upon the perceived success at GM. If GM is ever to regain the trust of car buyers and the American taxpayers that have bailed them out, they need to act in a less deceptive manner; starting with telling the truth about the Chevy Volt.

Mark Modica is an NLPC Associate Fellow.


TOPICS: Business/Economy; Government; Politics
KEYWORDS: akerson; chevyvolt; gm; governmentmotors
Modica is dead on the mark for Akerson, Government Motors and the Chevy Volt with this article.
1 posted on 08/23/2012 10:02:57 AM PDT by jazusamo
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To: jazusamo

We have a closet liberal radio announcer here in Atlanta on WSB 750 in the morning (Scott Slade) who takes his 40 pieces of silver each morning touting how “wonderful” his Volt is......

He’s the same guy who after Katrina hit and there was a temporary disruption in the pipeline to Atlanta triggered a one-day gas run panic here that drove gas up over $6/gallon.
His story was essentially untrue and all hype...

Analyze his show over a month and you’d conclude he’s a damned liberal.


2 posted on 08/23/2012 10:09:14 AM PDT by Gaffer
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To: Gaffer
Thanks...He's only one of many.

I google “chevy volt” daily and it amazes me how many blog posts and auto sites are stumping the Volt with glorious accounts of anything and everything to do with the Volt.

Between those and supposed owner testimonials I wouldn't venture even a guess as to the dollar amount this is costing Government Motors in advertising.

3 posted on 08/23/2012 10:19:49 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

I went to the local Chevy dealer the other day.
“That Volt is a nice looking car”, I told the salesman.
“That’s our popcorn machine”, he replied.


4 posted on 08/23/2012 10:20:45 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: jazusamo

The Chevy Volt is an experiment that has failed badly. GM would have been better served by bringing back the EV-1 vehicle they had made for a market survey. The first EV-1 models had a lead-acid battery, later models had a NiMH battery set, with higher energy content, and longer range (100 miles, up to 140 miles). If the Volts used even the battery system from the EV-1, they would be in far better position and have plainly superior usability, but apparently somebody else has the patents on the battery system.

But GM was never that enthusiastic about this technology at the time, and it sort of died on the vine.


5 posted on 08/23/2012 10:21:37 AM PDT by alloysteel (Voter suppression is needed now more than ever. Only, whom shall be suppressed?)
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To: alloysteel
Yep, I don't believe the battery technology is here as yet for a practical all around vehicle. The subcompact for going to the market and back would be fine with present tech but the costs are out of reason even with the federal tax credit.

The vehicle has to able to stand on its own without taxpayer subsidies to be successful and it just isn't here yet.

6 posted on 08/23/2012 10:31:27 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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Please bump the Freepathon or click above and donate or become a monthly donor!

7 posted on 08/23/2012 10:32:13 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

No mention of Volts bursting into flames?


8 posted on 08/23/2012 10:33:59 AM PDT by BubbaBasher ("Liberty will not long survive the total extinction of morals" - Sam Adams)
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To: alloysteel

CEO Akerson learned his craft (lying and hyping) as a senior executive at MCI Communication which morphed into (and died as) Worldcom.


9 posted on 08/23/2012 10:41:26 AM PDT by ReleaseTheHounds ("The problem with Socialism is that eventually you run out of other people's money." M. Thatcher)
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To: jazusamo

Never ONCE, has Slade, or that dipsh!t ditzy girl they have doing commercials about how great it is - no gas, just plug it in at night, unplug, go to work and then plug up and then unplug and go home... NOT ONE OF THEM MENTIONS THE COST OF AND THE FUEL USED FOR GENERATION OF THOSE “PLUG-UPS”....not a damned one of them...


10 posted on 08/23/2012 10:43:12 AM PDT by Gaffer
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To: jazusamo

Volt=Vega


11 posted on 08/23/2012 11:13:31 AM PDT by hadaclueonce (you are paying 12% more for fuel because of Ethanol. Smile big Corn Lobby,)
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To: hadaclueonce

I will never let GM forget the Vega that they conned me into buying. NEVER!


12 posted on 08/23/2012 11:15:40 AM PDT by hadaclueonce (you are paying 12% more for fuel because of Ethanol. Smile big Corn Lobby,)
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To: jazusamo

Is Akerson doing the planning or is he passing on what he is given by the relevant government bureau? Is a bureaucrat ever really responsible for anything?


13 posted on 08/23/2012 11:15:48 AM PDT by arthurus (Read Hazlitt's Economics In One Lesson)
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To: BubbaBasher

That was a feature added for birthday parties and i didn’t catch on.


14 posted on 08/23/2012 11:23:51 AM PDT by arthurus (Read Hazlitt's Economics In One Lesson)
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To: arthurus
I believe he's carrying Obama’s water on the green energy thing through his administration but that's only my view.
15 posted on 08/23/2012 11:23:58 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

The Volt is just Obama’s (and Government Motors’) version of Hitler’s VW.

Volkswagon, for those who may not speak German means “People’s Car”.

If the Volt is to be our VW, expect to see more Americans returning to the “glory” days of the horse and buggy!!


16 posted on 08/23/2012 12:12:09 PM PDT by DustyMoment (Congress - another name for white collar criminals!!)
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To: jazusamo

A Volt starts at $39,000. A Toyota Prius plug-in starts at $32,000. A standard model Prius starts at $24,000. The Prius c starts at $19,000. Why would anyone ever buy a Volt?


17 posted on 08/23/2012 12:25:59 PM PDT by Senator_Blutarski
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To: DustyMoment

The difference is that the “People’s Car” was affordable by the people. It also happened to be reliable.


18 posted on 08/23/2012 1:26:27 PM PDT by BubbaBasher ("Liberty will not long survive the total extinction of morals" - Sam Adams)
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To: alloysteel
The Chevy Volt is an experiment that has failed badly.

True, but the experiment was run back in the gaslight era (circa 1880) as the Baker Electric. The Baker had nearly identical range, speed, and proportional price and sold moderately well to little old ladies from Gramercy Park. The Baker lost out in competition with internal combustion powered cars on just about all figures of merit except noise level of the propulsion system.

All electric cars will not become "everyday" transportation until the power density of battery systems has improved enough to provide equivalent range and speed to gasoline/diesel powered cars. Hybrids performance will continue to pace improvements in battery technology and may altogether replace conventional combustion only autos if prices can be brought into line (economies of scale through mass production).

Regards,
GtG

19 posted on 08/23/2012 2:41:47 PM PDT by Gandalf_The_Gray (I live in my own little world, I like it 'cuz they know me here.)
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To: jazusamo

To make the Volt competitive, Dumbo will issue an Executive Order that 1) all gasoline-powered cars be restricted to gas tanks holding no more than 2 gallons, and 2) that all gas filler caps have time locks preventing them from being opened more than once in any 8 hour period. This EO will be retroactive to all vehicles currently operating.

Hmmm...maybe I shouldn’t be giving the moron-in-chief any ideas?


20 posted on 08/23/2012 6:23:31 PM PDT by TrueKnightGalahad
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To: TrueKnightGalahad

Agreed...Don’t give that bass turd any ideas. :-)


21 posted on 08/23/2012 6:29:17 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: BubbaBasher
The difference is that the “People’s Car” was affordable by the people. It also happened to be reliable.

A mere technicality!!

LOL!!!

22 posted on 08/26/2012 6:07:42 PM PDT by DustyMoment (Congress - another name for white collar criminals!!)
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