GM exploring increased production of Chevrolet Volt, new E85 flex-fuel version
General Motors officially launched the Chevrolet Volt on Tuesday as CEO Dan Akerson drove the first retail-ready production model onstage at the automaker's Detroit-Hamtramck Assembly plant.
That "job one" is one of only 10,000 Volts that GM is expected to produce through 2011 before bumping up production to 45,000 units in 2012. By comparison, GM sold more than 160,000 Chevrolet Malibus in 2009.
But according to GM, those limited production numbers are not for lack of consumer demand.
The automaker says around 240,000 potential buyers have signed up to receive information on the Volt, and Akerson on Tuesday told David Barkholz of Automotive News the company is studying how it could double or triple Volt production if that demand continues.
The real disparity between supply and demand, officials say, lies in the supply chain.
Nov. 30, AutoNews.com: Speaking on the sidelines of the official Volt launch ceremony today at GM’s Detroit-Hamtramck assembly plant, GM North America President Mark Reuss said that Volt production is constrained largely by vendor production of battery cells needed for the battery packs that GM assembles in suburban Detroit for the Volt.
Increased production, of course, could potentially allow GM to reduce the cost of producing the Volt. In his recently released memoir, former "auto czar" Steven Rattner said the $41,000 vehicle costs about $40,000 to produce. Akerson would not confirm those figures Tuesday, but acknowledged the Volt will sell for "close to cost."
"Obviously, we produced a car that had a time line associated with it," he said. "Now we're going to have to go back and look at where we can keep the content and the quality at extraordinarily high levels, and at the same time take the cost down. That'll come with volume."
The Volt is capable of traveling around 35 miles on electricity before a gasoline-powered generator kicks to provide up to an additional 300 miles.
GM global product chief Tom Stephens on Tuesday told Barkholz the company is considering a new version of the Volt that would allow the internal combustion engine to run on E85 fuel. If it moves forward with the plan, GM could produce a flex-fuel Volt in the 2012 model year.
