GM kills the volt

I agree that some dealerships appear to be greedy and sleazy...but what else is new? I've also long felt that Toyota's support of Prius "should" be the blueprint for other manufacturers trying to launch alternative automotive products.

It's deplorable some of the business tactics it appears some dealerships are applying to Chevy Volt sales. but I think the biggest mistake Cheverolet has made was such a limited release. I was worried before they were even made available when I heard Chevy/GM had only commited to a first year launch of 10,000.

The Volt isn't dead, despite all this. Which actually might foreshadow it's future success.

It's funny that you have Chevy dealerships evidently able to sell Volts at upwards of $20,000+ above MSRP...yet USA TODAY recently runs an article where the headline screams that "Americans Say No to Electrics"....

Yep, sometimes American automakers are their own worst enemies. I think a LOT of people want alternatives and are willing to embrace new technology and new products. Yet it does seem at times that Chevy/GM poisons it's own well.

For The Volt? You can only hope, that which doesn't kill it...only makes it stronger.

 

There's been some discussion in another thread, in particular this post might change your mind a little:

http://priuschat.com/forums/prius-h...cars-each-other-cashing-in-3.html#post1336840

 

I don't think anyone is saying GM can force independent franchises to sell at MSRP hence the (S) for suggested.

But I wouldn't say the "exact same thing" happened with Prius. While I'm sure at high demand times (such as now) and in the past, there has been price gouging, I don't remember reports of $20,000 dollar mark ups, and/or dealers selling to each other to take the tax credit for themselves.

Plus I think Toyota has always shown a dedication and faith in Prius that I don't see from GM as a whole with The Volt.

GM should of known, that with a state by state release and a ridiculously initial release of only 10,000 vehicles things like this were bound to happen. Create an aura? How about creating an aura that you are building a terrific and available product sold at a fair market value? I think it more likely certain Old School executives in GM so nervous about any alternative automobile, GM simply afraid to commit or take huge risk.

I hope Volt succesful. But I think the release could of and should of been handled better. And while independent franchises aren't directly controlable, if the Volt wasn't released with a production volume so low as to make the product aged wine rare...dealers wouldn't be able to be quite as nakedly greedy.

 

Toyota has always enjoyed a good reputation for quality products in the states anyway. There are still late 1980's Corollas on the road around here, and Camrys from the same era. (Incidentally, and Chevrolet Novas that were rebadged Corollas). Just saying. The Prius was just another good model that had as much good press as bad, so that seems like a wash.

 

Slightly off topic but related, I thought what really hurt The Honda Insight upon release was dealer mark-up. Along with what I thought were some unfair and high profile negative reviews. (Jeremy Clarkson, I'm talking to you).

But at least in my area, when Insight and 3rd Gen Prius were released? Seemed Toyota and Toyota dealers, kept prices reigned in, closer to MSRP...Prius II's and III's being great values. Meanwhile and simultaneously, Honda dealers marked the Insight up 2-3 thousand dollars...which made it Insight vs. 3rd Gen Prius II...almost head to head...and IMO HSD and Prius wins that battle everytime.

I concede my "area" and local experience is NOT a huge test sample. But it is what I witnessed.

I think when applying marketing strategy for the good of the entire company there should be communication and "shared" goals for both dealerships and manufacturer. And sometimes, Dealers become the Manufacturers worst enemy. And sometimes Manufacturers become the Dealers worst enemy. IMO when a vehicle is being sold for $20,000+ over MSRP, whatever the underlying demand or the fact that the market may allow it....it's still not long term good for the manufacturer or the dealerships...

 

I would agree about Honda. Still, I don't think Honda is serious about selling the Civic hybrid. It starts at $24,050 and a Prius III starts at $24,520.

 

I don't understand what all the hype is about with Chevy Volt. With a $41,000 MSRP, a limited range on battery, seats four, rear seats don't fold down and you can just about place a couple of grocery bags in the cargo area. Even a low end Prius will beat out the features of a Volt and for a low price in the $20K range!!

 

GM is going to have to control the dealers and their practices or they will literally kill the Volt. I don't think they want to be accused of killing another so-called electric car or plug-in hybrid. After all, they will introduce this crossover called Crossvolt and create a Prius-like family; that's right, Prius style. They will get their act together or the car will not sell in sufficient numbers to be sustainable!

Chevy Crossvolt!


It is a nice looking vehicle!

GM Trademarks "Crossvolt"... A Crossover Volt is on the Way (The Torque Report)

 

this shot across gm's bow seems a bit premature. unless i can go down to a chevy dealer and buy one off the lot, why would you say they are going to kill it. i'm no gm fan and even i'm not that skeptical or pessimistic.

 

FYI the rear seats do fold down, and there isn't a problem with storage in the hatchback even with them up.

The source of the original article is dubious and he appears to have gotten much of his data from autotrader.com. He sees dealerships listing some used cars and cars in inventory and assumes there is a sales problem. I went looking for some of those when shopping for my Volt, most dealers who said they had them didn't, and the few who did were using them as demos to take orders and not selling the one they had.

The issue with the dealers getting the credits was from dealers who bought Volts from other dealers in release markets to have on their lots for demos. They were the buyers and got the credits, when they eventually sell them they'll have to list them as used. The speculation that consumers would think they were new is just that fantastic speculation.

 

Huh? Never said Gen III Prius was the same, hence my very first sentence...slightly off topic but related....

My point being, despite there being times in the early years of Prius where demand outpaced production and I'm sure price gouging among some dealers existed, you said "The exact same thing happened with Prius"...

I disagree. Bottom line to me, there is and has been a significant difference between Toyota, and Toyota's approach to producing, marketing and supporting Prius and Hybrids vs. GM's approach today with the launch of The Volt and their history with other alternative automobiles.

My ancedote about dealer mark-up with Honda Insight and Gen 3 Prius was offered more as an example of where I think the "short term" desire of profit of individual dealerships can wound the long term outlook of the entire product.

Regardless of how widespread the reality of these massive mark ups on Volts may or may not be, regardless of comparitave happening in the past with other automobiles, this is clearly NOT the type of publicity GM would wish for....

IMO there is an undeniable philosophy difference between Toyota and GM when it comes to "alternative" automobiles. It's purely my opinion, but I see Toyota expanding a line of Prius. Supporting their own investment into Hybrids and upcoming plug in Hybrids...

Has GM ever demonstrated anywhere near that level of commitment? For years IMO the Volt existed primarily as an Auto Show concept pipe dream, meant to exite investors more than exite the potential driving public.

When they FINALLY do bring the product to fruition, it's released in such a manner that it almost guarantee's the uglieness we see happening..happening.

Do I think GM has "killed" The Volt? No. But I do agree with the OP, that GM needs to change their attitude and approach.

I think GM came in late..with the Volt as a trump card entry. But with such a limited initial supply, it remains for most still simply a marketing tool. Simply? I think GM would like to tell you all about The Volt....but sell you a Chevy Cruze.....

Where I think Toyota would like to tell you all about Prius, Prius V, Prius c....and plug in Prius...AND SELL YOU ONE....(at a fair price).

Big difference.

 

i agree with you on the toyota/gm philisophical differences. but i disagree on the selling part dealers are pretty much autonomous and make their own decisions. a manufacturer is more concerned about price cutting than price gouging, tho is powerless to do much about either.

 

I never said they weren't....

 

sorry, somewhere in there i thought you said gm dealers were more likely to gouge than toyota. my bad.

 

Aren't there competing dealers? Surely the Chevy dealers in a given area can't secretly agreeing on a price to sell the Volt or any other models. Wouldn't what be price fixing and illegal? I've visited many Toyota dealers that proudly say that they don't practice dealer markups regardless of demand. Infact, many years ago when there were only 1 Toyota dealer in my town, they were marking up all the cars on the lot with 1,000-3,000 dollar markup. People were driving 75 to 120 miles to other dealers that don't practice dealer markups. The dealer in town saw increasing new Toyotas with other dealer plates in their service bays. They have since stopped practicing dealer markups.