General Motors has once again decided to temporarily stop the production of the Chevrolet Volt in its Detroit-Hamtramck plant in Michigan for five weeks due to higher vehicle inventory and lower sales output.
This recent decision marks the second temporary stoppage of the production of the Chevrolet Volt since the factory has also stopped production of the Volt last December 2011. The suspension of production at that time was triggered by the car maker’s holiday plant shutdowns.
Unfortunately, the second stoppage was caused by poor sales which prompted the supply of the Volts that are still seating on the dealerships’ lots to reach its highest level.
As of the present, there are about 6,300 units of Chevrolet Volts that are confined on the company’s dealerships all over the US and this could be considered very high. Based on the current sales pace, it would probably take 154 days before the dealerships would be able to dispose all of these Volts.
Due to this, the temporary suspension of production of the vehicle that would last for least 5 weeks will allow the dealerships to sell the surplus supply before the newly assembled vehicles would be delivered to them.
Based on the figures provided by General Motors regarding the existing supply of the Volt on the dealerships’ lots, a lot of car experts were convinced that the demand for this model has tremendously declined. Chevrolet dealerships were only able to sell a total of 1,023 units of Volts in January and this has somehow increased to 1,626 units delivered in February.
Although there was an increase in the number of units delivered to customers, this still not enough to allow the company to reach its sales target of 45,000 units sold all over the US by the end of 2012. General Motors and its dealerships still need to double and even triple their efforts to sell more Volts in order for them to reach the target that they have set for this year.
The temporary suspension of the production of the Chevrolet Volt in the company’s Detroit-Hamtramck will take place on March 19 and will last until April 23. This decision will send a total of 1300 workers for a long vacation since the assembling plant is solely devoted for the production of the Volt and its Opel Ampera twin which is also subjected to a production halt.