Chevy Volt has taken a completely new direction. If insanity is doing the same thing and expecting different results, then the advertising people behind the new Volt campaign are in no need of therapy.
Everyone’s in agreement that the Chevy Volt is a groundbreaking achievement of automotive engineering. General Motors never wavered in its vision and commitment to bring this plug-in hybrid electric to market even with the bankruptcy struggles.
Sales Disappoint
However, sales of the Volt are below expectations. GM sold 7,600 units in 2011 with a goal of 10,000. The ambitious target of 45,000 sales for 2012 is looking to be unattainable. Despite rapidly increasing gas prices only 1,600 Volts have been sold through February.
The car is not the problem; Volt customers are exceedingly satisfied and loyal. The real issue is price; it’s widely acknowledged that the Volt is just too expensive.
New Direction
Last years Volt advertising focused on energy smart car buying, specifically targeting oil and fuel-efficiency. With sales faltering to the point where Volt production has been idled, it was time for something new.
GM has now called upon the Volt’s biggest strength. The new series of ads features real owners speaking candidly about the virtues of the Volt. Personal endorsements are definitely a new approach and I hope they help to boost the sales performance of the Volt.
Beyond a new advertising campaign it’s difficult to know whether GM will adjust their pricing strategy and offer the Volt at lower cost. With gasoline prices set to remain elevated for the summer I can see the temptation to leave the price where it is. Although Ford and Toyota will soon have their plugin hybrids on the market, adding downward price pressure.
Did she really say crapload?
Is the new advertising approach enough to save the Volt, or will GM have to cut the price?
The only thing stopping me from buying a hybrid is the price. I think if hybrids were less, they would sell many more cars.
At $40,000 for the Volt, I agree the price is a bit steep. However the $7,500 tax credit drops this significantly. Even so, current gas prices make it difficult to justify this premium.
I agree with KrantCents, it’s always been the only thing holding me back too. I think they would increase their sales if they lowered the price. The ads by actual customers are a nice touch, but if people can’t spend that much, then it doesn’t really matter how great they are.
It’s difficult to justify the expense when you can buy a Hinda Insight that averages 43 mpg and only costs $18,000, or a small 4cyl conventional car for $12,000. I’m sure the price will come down as more hybrids come onto the market.
I agree — I bought a used Corolla for a third the price of a new Prius. Even with gas prices being so high, it would take a long time to recover that difference.
Yes, there needs to be a radical shift to make more people switch to hybrids. Gas needs to go to $10 per gallon or the cost of hybrids must drop significantly.
I understand the main marketing method is how much it saves in gas pricing (and perhaps they’re going the environmental angle, too). But simple math will tell you that it’s going to take years to recoup your initial investment by paying a premium price for this car and saving on gas in return. For most, the math just doesn’t make since if you’re buying this car based on cost alone.
True, the economics are not in play yet. Of course the unnown factor is the future price of gas. Even with hybrid prices high they are not going to get any lower while current inventories are in high demand. At least Chevy has made a wise decision to idle production of the Volt until they can figure out how to sell more of them.
If you were trading a $70,000 truck, I’d say go for it, but the price is way too high. Most people would never recoup the extra cost.
Good point, thanks John.
I’m all for saving the environment by reducing our dependence on foreign oil, but I’m even more committed to saving my own type of green – my money. I did see the Volt commercial the other day and was struck by the claim that most users can go 900 miles between fill ups – that really could be beneficial to my bottom line.
It’s not easy generalizing how much anyone will save by driving the Volt, it depends on how many miles you drive every day. If you never drive more than 40 miles per day then you will need use any gasoline and save 100% what you currently pay for fuel.
It’s also not a fair comparison between plig-in hybrid and battery hybrid. The plub-in is far superior in terms of using less gasoline.
It’s reasonable to say that at current prices you would save $2,000 per year if driving less than 40 miles per day. $10,000 in savings over 5 years significantly shifts the cost-benefit in favor of the Volt.
It may be worth looking beyond the initial purchase price and take an honest look at the operating costs that we must pay.
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I think the idea behind the Volt is great. But with any new make and model I think it’s smart to wait on future generations of this vehicle so that any and all bugs can get worked out. Mr. LH is a car fiend and I’m pretty sure the Volt has had some mechanical issues pop up. Maybe if the price point comes down a bit over the next couple of years, the Volt sales will pick up steam.
That’s excellent advice, I think there’s a lot of truth to new models having teething problems in the early production phase. The early adopters pay a high price for the privelage of being first.
She should have said “I saved a crapload of money AFTER I paid way too much for the pleasure to drive this car…AND THEN the battery will die just before the point where it all made fiscal sense.” That would be truth in advertising.
Is it really that expensive? $32,500 after tax credit. Try buying a Ford Fusion or Chevy Malibu with decent options and they’s cost about the same.
Let’s not under estimate the fuel costs. Volt drivers are saving $2,000 per year at least on gasoline.
Plus, GM has warrantied the battery for 8 years.
I think the real problem is marketing. It’s tough to sell a car with such a high sticker price, despite the fuel savings. GM has not effectively communicated the benefits yet.
I don’t think Chevy can bank on the Volt especially when there are established alternatives from Toyota and Honda.
I think a better strategy would be to focus on its Cruze which is apparently doing pretty well.
The Cruze has a lot to offer, great package.
One major issue with GM and the Volt is that they could not possibly walk away from it now. When they dumped the EV1 over a decade ago there was outrage from the green movement, and it was Rick Wagoners biggest regret as CEO to cancel that project. Plus, congress slammed GM as they entered bankruptcy and asked for a hand-out. They screamed at GM for not producing more fuel efficient cars. I don’t think the Government, which owns a big chunk of GM would lt them ditch the Volt now.
Things will improve for the Volt, I’m sure.
I think the idea behind the Volt is great. But with any new make and model I think it’s smart to wait on future generations of this vehicle so that any and all bugs can get worked out. Mr. LH is a car fiend and I’m pretty sure the Volt has had some mechanical issues pop up.
I bought a Volt this week and LOVE the car. I will hardly use any gas. My commute is 35 miles per day and in Colorado we qualify for an extra $6,000 tax incentive. The market is soft so I was able to negotiate a price of $2700 below MSRP. I leased the car and am VERY happy with the car. Some people just buy cars for practical purposes. Other people buy cars because they are fun to buy, or they go fast, or they are loaded with extras. This car is so fun to drive and I like that its eco-friendly. I am willing to spend a little more for that and to completely bypass the multinational oil companies.
You got a great deal on your Volt Mark, thanks for sharing. Plus, you won’t be purchasin gas for your normal driving needs. I think you’ll be a long way ahead in a year or two…and you’re not polluting like most gas guzzlers. Awesome.
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