Chevy stops Volt production (temporarily ...)

Chevrolet Volt Assembly Plant In Hamtramck Idled A Month. But Not Why You Are Thinking

I'm not sure if it really is to fight the Canadian union, but it doesn't seem to have much to do with the volt. The laid off workers get 90% of their salery. They appear to be building ahead for demand in October. Poor planing might lead to lower October sales.

 

lol.

 

The canidian union does not have much to do with the Volt, they have a lot to do with the Impala. By adding Impala production capability at Hamtrack, GM is setting up a stronger position.. if Canadian UAW strikes, they just sift production earlier (it was already scheduled to partiall move into Hamtrack next year anyhow). But that would be too late to impact negotiations.

 

The threat of massive layoffs in the Canadian union, is part of a negotiating position. As I said, I don't go along with the conspiracy theory, but the timing seems very odd if it is not to exert pressure on the Canadian union.

The only costs GM saves on the volt by building a head then shutting the line are labor costs, and workers will get 90% salary, so it doesn't really save any money. Their inventory holding costs, and the costs of potentially building the wrong mix of cars is higher. The wrong mix would mean lower sales in October. The best thing for the volt line to do is to build cars as late as possible given their potential to speed up the line.

GM's big problems are in Europe, the dispute with the Canadian union are minor.

 

whats the capacity of that plant and what was their plan for total worldwide sales in 2012?

Those two will tell you why is the plant being idled. Plants running under capacity are simply terrible for profits.

 

I want to believe that GM is managing the entire business for optimal outputs.

I know that the media is in the business of selling ads and will spin anything possible to that end.

 

It seems likely you don't understand car manufacturing at all. You should take a look at the TMS (Toyota Manufacturing System) and learn about it so that you can make more informed posts.

From an inventory level the volt seems to have been properly built to stock through the beginning of august. Good lean manufacturing principals would have them continue to build to stock. I'll use some made up numbers in this example. Say build to stock means building 500 cars per week in august/September, but the plant will close down for 4 weeks. That means 4 weeks before you ramp up to build 1200 cars a week for the 4 weeks before. You build extra cars because your mix and allocation may be wrong. Now you close down for those 4 weeks. You need to work hard for the next 2 to make up for a change in say the color of car or leather, but then you go slower to work through the inventory. Did you save any money? I would say you likely lost more money in the weeks before and after the shut down than you saved during the shut down. You also jerked around your suppliers asking for speed ups of their lines, then no orders. The labor costs are only a small part of the volt costs.

 

Your view of this and other affairs is very simplistic. Toyota has recently said that running their plants at less than 90% of capacity is losing them a LOT of money... this was with regards to their European plants that they reorganized since then. Labour is only small part of the cost of producing the vehicle. Once again, in recent interview one of the European Toyota bosses said that labor costs are 8% or less (he was talking about people worrying about production moving to China).


If you build a plant and run it to sell 100k cars a year and you sell 20k, then you are in deep problems my friend.

In other words, Volt is pain the butt of GM and they once again wont reach even half of their production goals for this year... Spending billions on outdated technology that is 0.3% of their production is massive ongoing failure for GM.

There is no need to invent some political stories when it comes to Volt sales failures really...

 

Toyota is losing a lot of money in Europe. I also have consulted with some of the ex Toyota guys, and understand TMS, which you apparently do not. If toyota were to speed up the factories, then idle them, they would lose more money.

The labor costs are a problem in europe. If you close the excess capacity, you still have to pay that labor cost. Apples and Oranges. The volt plant was not built so it had to be run full out. Those european plants were built with the idea of much higher auto sales.

Huh. Who would do that? Certainly if you build a plant to run 2 shifts, and you run 1 you can be profitable at the plant, and you can expand to 3. The plant is question also can shift production to the malibu. It is flexible manufacturing. You need to think past your limited knowledge of headlines.

We should try not to just read your rags and think a little bit. The prius started in a similar way, although toyota didn't go through bankrupcy. It appears from the analysts the volt has cost about $700M. I do not know where your figures came from. No one really believed it would be a majority of their production. GM is losing about $1B/year in europe because of real factory problems. They are actually doing better than most analyst expected on the volt, but worse than lutz predicted GM has swapped people out of europe, but it is bleeding badly there. With the debt crisis and other european troubles, IMHO GM needs to slash opel
http://www.nytimes.com/2012/08/03/business/gms-profit-falls-41-on-losses-in-europe.html?_r=1&pagewanted=all
Read reports and understand. The valuation of gm is down because of European losses.

Then why are you doing it?

 

Maybe GM should have announced that they have met the current CARB goals and need to build more Malibu units with their supply chain. I have no idea, but it is fun speculating.

 

I presume you mean outdated technology as in it makes most other cars seem outdated in their technology. You might want to check out this tread, http://gm-volt.com/forum/showthread.php?16430-Volt-vs-Prius
where lots of people that own both compare.. and almost all say the Volt is technology far superior.

Volt sales, in both its launch year were, and its first full year will be better than the initial Prius. One does not launch new tech more quickly than the market will absorb it. They could have sold more at a lower price but then they may be loosing more money, and with the studpid model of 200K tax credits, they don't want to get too far ahead of the market. Yes 30-45K units this year would have been nice (and not too far ahead), but its already the second best selling hybrid in the country and the best selling EV.. so hardly a failure.

 

That's a wicked Pulse & Glide!... LOL

Big Three's biggest problem: Europe - Apr. 30, 2012
(Toyota has been losing money, but big 3 are losing more, by far...)

 

my friend, Volt is not being launched in 1999... it is launched in the world where Prius (Toyota Hybrids) sell 1,200,000 per annum. And thus it selling paltry 25k a year is awful number.

If you few GM fans cant realize that GM spending billions to sell 25k cars is awful, then I guess there is nothing I can do to convince you anyway.

And no, Volt is not 2nd best hybrid... it is 7th best selling hybrid... and I bet that with new Ford's and other competition, it might end up being out of top 10 next year.

 

So Spy, to be successful in your eyes any new car has to sell as many units as the Prius currently is selling?

 

So when Toyota launched the Prius it should have been killed becuase it was selling in a world where GM sold Millions of other cars? Your logic says no new concepts can be introduced.

GM did not invest just, to sell 25K cars, they invested it to advance a new type of vehicle for them that may, over a decade, sell millions. Same way that Toyota invested in hybrids early in the day. GMs more tradational hybrid technology was eclectic at best, the Voltec design is far superior for many drivers to any standard hybrid. GM needed to show they could do advanced green tech, and that they could do quality. They did both.

I stand corrected on its ranking, what I meant to say GM is now the second largest seller of hybrids with the volt leading the GM offerings. And with august being a new Volt record sales month it may be moving up the overall individual rankings as well. Time will tell where GM and ford end up after next year as consumer trade off price (where ford may do better) vs Quality vs Range (volt's advantage).

 

Is the Volt still being produced ? The last I read it was discounted at 'going out of business' prices.

OK, that was a little tongue in cheek. But not by much

 

No that is the leaf.. with leases as low as $99/month
Niisan Leaf lease deals - As low as $99/month

The Volt is just having some serious end-of-year and get them moving sale. Funny how when the price was high complain, now that they are starting to actually give some incentives and effectively lower prices, people take that a a bad sign?

 

What a twist on your words. Prius was indeed selling in a world when Government Motors were selling gas guzzling large cars, trucks, and Suburbans.

When the Prius was launched, Goverment Motors said that there was no market for a hybrid car.
The Prius proved Government Motors wrong.

Get you facts straight.

DBCassidy

 

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That is a lot of assumptions you are making about Government Motors being around in a decade. Your statement of advancing green tech and quality - is lacking in legacy. Toyota has legacy in their Prius, Government Motors does not have it (legacy) in the Volt. If, as you claim the so called "Voltec" design is so superior, then there is not problem selling 45k units this year. This number was from CEO Ackerson. Now there is an 84 day inventory (Volt) vs. 51 day avg. This 84 day Volt inventory is WAY behind
the BMW X3 10 day inventory. The $40 grand plus price for the Volt, puts it in the price range of the BMW X3. The Volts' weak sales are supported by government intervention - subsidies, If no subsidies, no Volt sales. Ref: National Review Online.

This time of the year, Volt sales should be closing in on the 45k production units sold for 2012.

The Volt is not even close.

DBCassidy

 

We approach 2 years since Volt rollout began. The goals originally set have long since been abandoned, forgotten, and denied. Now GM is stuck trying to recover from yet another mess they over-promised themselves into while supporters greenwash about what's actually needed.

It's an unfortunate situation.

The expectations for better efficiency are growing. Consumers are looking a middle-market offering, something with significant MPG improvement but without a big cost increase. Toyota & Ford have strived to deliver that. GM didn't consider it a priority until the second-generation... which will essentially have to become a redesign to be competitive... making wonder about what happens next quite intriguing.