DETROIT — General Motors will stop production of the slow-selling Chevrolet Volt next month and extend the normal retooling time to make the next generation of the extended-range hybrid vehicle.
The Detroit/Hamtramck Assembly plant in Michigan is almost doubling the changeover period because it has a glut of Volts. GM has a 200-day supply of the hybrid, and in its No. 1 market for the car, California, the supply is about 100 days, said spokeswoman Michelle Malcho. Automakers ideally like to carry about a 60-day supply of a vehicle on dealer lots.
Sales of the 2015 Volt are slow – only 1,874 have been sold through the first quarter, down 48 percent from a year ago.
There are a couple contributing factors. One is that low gasoline prices have hurt vehicles whose main selling point is their fuel economy.
Also, the original Volt is nearing the end of its lifecycle and consumers could be waiting for the second-generation model to go on sale this fall. The 2016 Volt has a new powertrain that increases the car’s range to 50 miles from 38 with the current model.
The 2016 Volt was shown in January at the North American International Auto Show in Detroit. GM also showed the Chevrolet Bolt concept which is an all-electric car designed to go 200 miles on a single charge.
Automakers try to avoid expensive downtime at their plants. When production must be slowed or stopped temporarily, the down weeks are often tacked onto model changeovers or holidays.
The Detroit/Hamtramck plant makes five different models and will continue to operate during the Volt changeover, Malcho said. GM is spending $343 million to retool for its next-generation hybrid vehicles.
At the other end of the spectrum, GM is seeking tax abatements as it mulls a $1.2 billion expansion of its Arlington, Tex., plant that makes its profitable large SUVs. Arlington Mayor Robert Cluck told media Wednesday that city council will discuss necessary zoning on Tuesday as a first step to offering tax breaks. It could take a few months before a final decision on the investment is made by GM.
A report on the city’s website says the plant could expand by 1.2 million square feet over three years and add almost 600 jobs.
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