Posted on 01/10/2014 1:28:22 PM PST by jazusamo
The final tallies for 2013 sales are in for the Chevy Volt and its little sister, the Chevy Spark EV. The results are ugly.
While the Volt relies on both a gas engine and electric power, the Spark is actually an electric-only vehicle, assumedly designed to compete with the all-electric Nissan Leaf which had sales of 22,610 for the year. The Spark EV did not compete well, with sales for 2013 coming in at only 589 for the seven months in which it was offered. Chevy Volt sales for the year also disappointed, coming in at 23,094 and down from 2012 sales. The Volt's sales drop came during a year when overall US car sales rose about 8%.
Back in November of 2012, new General Motors CEO, Mary Barra, hyped the Chevy Spark EV and proclaimed that GM would focus on such plug-in electric vehicles in the future. If this is Barra's vision for the future focus of GM, shareholders should be very nervous. Following are excerpts from the Automotive News article with quotes from Ms. Barra on her electrified vision for GM:
General Motors' future green-car efforts will focus on plug-in hybrids and electric vehicles rather than conventional hybrid powertrains, product chief Mary Barra said today.
Barra said GM has narrowed its future development emphasis in an effort to defend its leadership position attained with the Chevrolet Volt plug-in hybrid. GM will unveil an electric Spark minicar this month at the Los Angeles Auto Show.
"A major focus for GM's electrification strategy will center on the plug," Barra said via a satellite feed to reporters gathered here for a GM event. She added that plug-ins offer "a unique opportunity to change the way people commute" and that Volt owners "love the ability to refuel at home."
Barra said she has worked with her global team over the past few months to narrow GM's electrification focus. In the past, GM sought to "cover the waterfront" by pursuing myriad powertrain technologies, but that approach is too costly and inefficient, she said.
"We need to make educated bets on which technologies hold the most potential for creating values for our customers and our company," Barra said.
Traditional hybrid technology, a realm now dominated by Toyota Motor Corp., "is important, of course," Barra said. "But we think plug-in technology will play an increasingly important role over the years to come."
So, how is Ms. Barra's bet on plug-in EVs over conventional hybrids working out? Not so well, based on the numbers. Toyota sold over 200,000 conventional hybrid Prius models in 2013. That's about ten times the combined sales for the Volt and Spark EV. And if Barra is concerned with "costly and inefficient approaches," the money-losing Volt and Spark EV are certainly not the way to go.
GM wisely chooses not to talk about the Spark EV. Sales figures for the vehicle were not broken out from total Spark sales on previous monthly sales data releases. The taxpayer-subsidized vehicle's apparent real hidden goal is to help GM meet compliance requirements in states like California.
Shareholders can only hope that Mary Barra does not really believe that plug-in electric vehicles are the wave of the future. Even a recent government report predicts sales to stay in the one percent range of total vehicle sales all the way through 2040. If Ms. Barra's vision for GM truly centers on plug-in electric vehicles such as the Volt and Spark EV (not to mention the new Cadillac ELR which is sure to be a failure ) there will be a price to pay; for both taxpayers who subsidize the vehicles and the GM shareholders who will end up absorbing the losses.
Mark Modica is an NLPC Associate Fellow.
the only things wrong with the Volt/Spark,
is that they cost too much for what they are.
you have to start somewhere.
Correct, that’s what it’s about but the taxpayer funded tax credit for these electrics is a huge rip off, let the companies and their investors stand on their own and not accept taxpayer subsidies.
“Yep, they make money on Corvettes and pickups but lose on every Volt sold.”
It’s not that simple. Basically, the Corvette, the Mustang, the Camaro SS/Z-28 or any car/truck with a big, thirsty (according to the government CAFE rules) engine subsidizes the Volts and other electric cars. If it wasn’t for the taint of government, I’d actually look at a 30,000$ Volt. As the CAFE goes up, expect “Muscle” cars to get even MORE expensive, a lot more expensive.
This is basically why Mercedes bought Smart, IMO.
I am ones of those that won’t buy a car because of its name. No funky named cars for me! My usual line is....what the heck is a ______? What the heck kind of name is that? Then I snort and walk off. Lol
You’re correct, it is about CAFE rules as well as 0bama government motors but it can be done with higher mileage gas and diesel cars and trucks that don’t have tax credits funded by taxpayers.
Check my post 22.
Chevy Volt (electric mode only): 38 miles
Spark EV: 82 miles
Cadillac ELR (electric mode only):35 miles
Nissan Leaf: 75 miles
Toyota Prius (electric mode only): 10-14 miles
The range of these vehicles would be substantially decreased if the heater, defroster, wipers, lights or stereo system were being used. Range would also be decreased by cold temperatures. So if you are driving any of these vehicles on a cold winter night when lights, wipers and defroster would be essential for safety you better have cab fare.
I think the range in winter for an electric car is the end of the driveway.
Thanks for adding that caveat to driving those vehicles.
Corvette sells well for a car of that price range and class. 50K-125k and 2 seaters are not family sedans. As opposed to the Volt the Vette is a proven performance icon. Go check SCCA Super Stock results, every year they are 80-90 percent of the top ten... That Volt is a Dolt and does not belong in the same conversation as the Vette.
After shareholders got screwed by the bailout the first time, I’m surprised there are any GM shareholders now.
Sales figures are all about perspective.
Compared to the 2013 Prius, the Volt sales figures are disappointing. Compared to the Vette, they don't look bad.
The MY 2012 Prius sold ~147,000 units in the USA.
But, the first year it was sold, the Prius only sold ~38,000 units worldwide and only 5,600 in the USA.
The second year, ~59,000 units worldwide and less than 16,000 in the USA.
So, compared to the Prius during the early years, the Volt isn't doing bad, especially considering that sales of all new cars are down, even the Corvette.
In 2005, the first year of the C5, GM sold ~32,000 Corvettes in the USA.
In 2010, only ~12,000 Corvettes were sold in the USA.
Sales rebounded slightly in 2013 up to ~17,000 units in the USA.
Even though the C7 has been introduced and the Corvette is considered the crown jewel in the GM line, there is talk of discontinuing it after the 2015 model year.
You'll get no argument on that from this quarter.
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