Channel | Auto Industry News

GM Reportedly Halting Chevy Volt Production To Pare Down Excess Inventory

HAMTRAMCK, Mich. – Reports have abounded in the last week that GM is temporarily halting production of it’s Chevrolet Volt line in the plant here. The reports, first published in Automotive News, note that sources have said the shut down will be from Mid-September until Mid-October, and will both allow GM to bring the supply of the Volt in-line with current demand. At the same time, the plant will also temporarily stop production of the Chevrolet Malibu as well.

According to widely circulated reports, during the shut-down, the 1,200 workers will be given unemployment compensation for the period, which will amount to roughly 90% of their usual pay.

GM has struggled to match production of the Volt to consumer demand, selling 13,000 so far this year. Dealers are reporting enough inventory to last 84 days at the current sales pace, which explains the temporary halt in production. The Volt uses a lithium-ion battery for the bulk of it’s power, with a small gasoline engine for times when the battery runs low. It retails for $40,000.

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