Some Chevy dealers ceasing Volt sales due to costly tools

Michael Harley — Wed, 02 Jan 2013 11:00:00 EST

Filed under: Car Buying, Hybrid, Technology, Chevrolet, Earnings/Financials

Automotive dealerships are accustomed to training sales and service professionals when new models arrive, but the plug-in hybrid Chevrolet Volt - and its pricey additional tool and equipment costs - is frustrating some low-volume retailers to the point of dropping the model from the showroom. A recent report says that a few discontented dealers have stopped carrying the innovative sedan because General Motors is requiring a more significant investment in the near future, and the specialized costs (in excess of $5,000) aren't offset by the model's slow sales at those establishments.

This time last year, Chevrolet had 2,614 stores certified to sell its Volt (out of 3,079 dealerships). A full 70 percent of the sales were generated by the 300 highest-volume dealers - leaving 2,314 dealerships to fight for the remaining 30 percent. Some of those non-metro stores, like Jim Barnard Chevrolet in Churchville, NY, have sold just five units in the past two years (they are understandably opting out).

Yet some dealerships, like John Holt Chevrolet-Cadillac in Chickasha, OK, are soldiering forward. Even though they have sold only five Volts since its introduction, the owners have chosen to make the investment as sales are on the upswing (Volt sales have more than tripled this year) and GM is introducing other plug-in hybrids with similar technology (Cadillac ELR) in the near future. "I figured I'd be foolish not to buy the damn $5,100 tool," said owner Holt.

Some Chevy dealers ceasing Volt sales due to costly tools originally appeared on Autoblog on Wed, 02 Jan 2013 11:00:00 EST. Please see our terms for use of feeds.

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Some Chevy dealers rejecting further Volt allocations

Zach Bowman — Mon, 23 Jan 2012 13:00:00 EST

Filed under: Car Buying, Hybrid, Sedan, Etc., Technology, Chevrolet, GM, Electric

General Motors is having a hard time with the Chevrolet Volt. First, the National Highway Traffic Safety Administration opened a probe into the vehicle over the possibility of post-crash fires, and now some of its dealers are refusing to take their allocations of the extended-range plug-in hybrid. For example, according to Automotive News, GM set aside 104 Volt models for 14 dealerships across the greater New York City market. Of those vehicles, dealers took just 31. The problem isn't just out East, either. The report claims one California dealer turned down all six Volt models allocated to him despite the fact that his franchise sold 10 of the vehicles last year.

GM, meanwhile, admits that ordering on the vehicle is down. The automaker attributes the slump to the fact that most dealers were awaiting resolution on the NHTSA investigation (the Volt has since been given a clean bill of health), though GM has announced a voluntary repair to prevent the fires in the future. Even so, public opinion on the vehicle has taken a ding, and many dealers may simply be waiting for the dust to settle before recommitting to the model.

Some Chevy dealers rejecting further Volt allocations originally appeared on Autoblog on Mon, 23 Jan 2012 13:00:00 EST. Please see our terms for use of feeds.

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