Meta-Luxury

rss

auto motive

Chevy Volt Ready to Recharge

Posted by Dale Buss on January 31, 2012 02:02 PM

Don't expect General Motors CEO Dan Akerson to go meekly back to Flyover Country after his resolute defense of the Chevrolet Volt before Congress last week. His appearance will rank as the high-water mark for the car's critics, not for the car.

The appeal of Volt to American consumers is poised to begin rising again. There's a new federal imprimatur on its crash-worthiness. GM will use its new marketing campaign, including on Super Bowl Sunday, to get out a fresh and upbeat message about Volt. And gasoline prices will likely start rising again, at least for seasonal reasons, as spring approaches, meaning that American consumers will be taking a closer look once again at what they shell out at the pump after about a year of relative stability, though at about $3.50 a gallon.

While U.S. car buyers remain uninterested at best in all-electric vehicles and only tepid about hybrids, even after they've been pushed in their faces for a decade, Volt still makes more street sense than any of the others. It can get better mileage than regular hybrids because it can operate in all-battery mode. Yet Volt has a huge leg up on its competition to date because it vanquishes "range anxiety" with an onboard small engine.

All of that means as gradually higher numbers of consumers inevitably consider the EV proposition — and Millennials certainly will — they're likely to trust Volt over others because they know they'll never be marooned.

Akerson was right when he said that Volt had become "a political punching bag." Only time will tell if the CEO also was right in his message in some paid print advertisements by GM that Volt is "the most significant step in GM's history to give customers a choice beyond oil" and a "technological 'moon shot.'"

Overall in its new Volt marketing campaign, GM certainly takes the gloves off a bit more. Over the last couple of years, most of its ads for Volt have focused on range anxiety and the car's capabilities, not on the surrounding political or cultural environment. But in its new spot, voiced per Chevy these days by Tim Allen, GM focuses on the actual production of Volt, in its Hamtramck, Mich., plant — "for our town; for our country; for our future."

In the meantime, congressional critics are likely to begin holstering their fire at Volt after yesterday's hearing. They may or not be correct in saying that Obama administration footdragging since last summer shielded Volt from attention over the fire concerns until late last year, because of the potential political sensitivities around the government's bailout of GM.

But that's largely moot now.

Why? Because most Americans don't care about that allegation, especially without hard evidence. Because most taxpayers have moved far beyond their initial skepticism about the GM and Chrysler bailouts if only because the companies have recovered nicely and the government will regain most of its investment.

And in Midwestern political swing states like Michigan, where manufacturing employment finally is rising again, most voters don't want to hear that's a bad thing because in a free market events would have unfolded differently. Even Mitt Romney doesn't knock the GM bailout anymore.

Critics are right to point out the huge federal tax break of $7,500 that a buyer gets for purchasing a Volt that is priced at a whopping $40,000: Those amount to subsidies of Obama's clean-energy fixation, directly out of the pockets of taxpayers, at a time when neither individual taxpayers nor the federal government can afford it — not that there would be a good time.

And for justifiable criticism of Obama's fixation with "green jobs," critics have much easier targets. Solyndra is still ripe for the knocking.

Instead of setting a wildly optimistic sales goal and not meeting it as GM did last year, and suffering push-back from frustrated dealers, GM executives finally have gotten realistic about just how quickly Americans will warm up to Volt. Akerson has said that Volt production will be adjusted to market demand, and that likely means making and selling a lot fewer of the cars than the 45,000 initially projected sales for 2012.

In its new TV ad, GM says about Volt, "This isn't just the car we wanted to build. It's the car America had to build."

That's true in ways most viewers won't recognize. But it's one more thing Volt will move past.

Comments

@bobbleheadguru United States says:

Akerson made some revealing points during his testimony that did not make it to the mainstream media. Here are two:

1. Their "wildly optimistic sales goal" was actually adjusted to a production goal in a March 2011 press release. The goal stated in that release was for 10,000 units PRODUCED (not sold) in 2011. They produced 14,500 in 2011, beating their estimate by 45%.

Also note that the Volt started selling nationally on 11/1/11.... 91 days ago. For the majority of 2011, the Volt was sold in 6 of 50 states. 91 days is mili-second when it comes to car sales.

Akerson mentioned Chevy sold 1500 Volts in January to date... Realistically, that means the January sales could be as high as 2000 for the entire month... which would not only be a record, but would just about make up the difference between their ~8000 sold and their ~10,000 goal.  Even from a sales (v. production) perspective, they may be literally weeks behind their initial estimate.... make their goal "slightly optimistic" rather than "wildly optimistic".

2. Akerson mentioned in his testimony that eAssist technologies used in both Chevys and Buicks are derivative technologies of the Volt. If you add sales of eAssist and Volt, it is not hard to come up with math that puts "Volt technologies" revenue at well over $5,000,000,000 for 2012. That would hardly be a sales dud.

January 31, 2012 02:28 PM #

Rick United States says:

The $7,500 credit is not part of Obama's energy strategy, it was part of Bush's energy strategy. He signed it into life.

January 31, 2012 03:29 PM #

John McVicker United States says:

The 7500 tax credit was instituted by the Bush Administration to help kick-start the creation and sale of Electric Vehicles to assist on reduction reliance on foreign oil.

green.autoblog.com/.../

January 31, 2012 03:32 PM #

Tinsa United States says:

I paid $32k for my fully loaded Volt (after 7500 tax credit). Our family loves this car. My daily commute is 65 miles round trip and am getting 120 MPG.  It plows right through the snow. After 12,000 miles we haven't had a single problem. It takes me 6 seconds to plug in, no standing at a cold, windy rainy gas pump. The car charges while I have dinner and watch a TV show. Easy! My electric bill increased $330/year, my gas bill was slashed by $2,000/year! This is the best car I have had in 30 years. We are planning on another when our second car needs replacing.

January 31, 2012 06:48 PM #

Dan T. United States says:

I haven't spoken to anyone that has a Volt so it is nice to hear a story from an owner.  After the tax credit the price is very reasonable and I certainly hope that GM sees enough success to keep pushing the technology forward.  I have considered one myself and I only have a 20 mile round trip commute.  I'm tired of paying high gas prices that continue to rise.

January 31, 2012 10:42 PM #

Tim United States says:

I have a 2012 Volt and am in love with it, despite it's the very first American car I've owned (1 Mtsubishi, 2 Acuras, 1 Volvo, 1 Lexus, 1 Infiniti, and 3 Audis). Besides being a very good car, there is something deeply satisfying that the engine rarely comes on. After almost 1000 miles, I've yet to visit a gas station while still having a quarter tank of gas from the initial delivery of my car.

January 31, 2012 11:17 PM #

Dave -Phoenix United States says:

I own a 2012 Volt after owning a BMW 3 series previously. The Volt is more fun to drive.

I can describe the Volt in 5 words:

FAST - 273 lb of torque at zero RPM
QUIET - the tire make more noise than the motor
SMOOTH - great balance and suspension
EFFICIENT - 0.0 gallons of gas used in January
AMERICAN - Made in Detroit

This is without a doubt the best car I ever owned.

If this is the kind of vehicle that goverment subsidies produce, then we need more of them in my opinion. I would say Bush's $7500 tax credit did its job.

January 31, 2012 11:51 PM #

Volt3939 United States says:

My wife loves her volt, she does about 20-25 miles a day, so rarely uses any gas. Since we took delivery in June, we have put about 5000 miles on it. So far it has consumed 1.6 gallons of gas, mostly when we first got it. MyVolt.com calls that 2200MPG! It does ignore the electricity used, but our MPGe is still almost 90. (My wife does better on her commute, but I also drive it, and my heavy foot brings down the average, but it's so much fun!)

It does have to run the generator ever couple of months to keep it lubed and ready to go, and it will use up the dealer supplied tank of gas after a year (so that the gas won't get stale).

You can see over 400 Volts and the real-world mileage they are doing at Voltstats.net.

January 31, 2012 11:58 PM #

WVhybrid United States says:

We've owned our beautiful red Chevy Volt for almost 11 months now, and have driven almost 14,000.  I'm now convinced that I will never buy another vehicle unless it has a plug.  Chevy has built a transformational car.  Instant torque, great handling, beautiful styling, quite, and low total cost (purchase, fuel, insurance, and maintenance) of ownership.  Is there anything else I should want?  Oh yeah, I can easily stuff both our bicycles in the back, and our saddlebags, when we go on vacation.

February 1, 2012 02:21 AM #

neil United States says:

135 MPG. Drives awesome . Feels likes driving Kitt from Knight rider. Love it. Would be hard for me to imagine myself buying a gas only vehicle in the future

February 1, 2012 08:29 AM #

Comments are closed

What Branders are Saying on Twitter

elsewhere on brandchannel

1 2 3 4 5 6 7 8 9
brandcameoThe Avengers
Acura leads brand blitz
Martin LindstromMartin Lindstrom:
On Brandwashing, Brand Ethics, and Privacy
debateJoin the Debate
What's your can't live without brand?
BPBP
Back in Business?
Michael Stone and Nancy BaileyMove Over Mad Men: Here Come the Brand Licensors
Beanstalk's Michael Stone & Nancy Bailey
Digital Watch: WahlWahl Climbing
Wahl’s Digital Branding
paperThe Millennial Consumer: Debunking Stereotypes
The latest from The Boston Consulting Group
Jeff Weedman
P&G's Jeff Weedman

Connect + Develop Your Career
Marketing to the New MajorityBranding 123
By Barry Silverstein