Despite strong numbers GM is faced with an oversupply, and plans to suspend production of the new PHEV for three weeks in July, instead of the traditional two-week holiday.
Faced with an oversupply of Volts, GM plans to suspend production of the new PHEV for three weeks in July, instead of the traditional two-week holiday. The company has already idled the Volt production line at the Detroit-Hamtramck plant for five weeks to allow demand to catch up with supply.
However, the Volt had a record month in March, selling 2,228 units, so GM may cancel the summer shutdown if sales stay strong. According to Ward’s AutoInfoBank, GM had enough Volts in its inventory at the end of February to supply dealers for 154 days. A 60-day supply is considered optimal.
Automakers have learned (the hard way) the wisdom of modern “just in time” inventory management, but it’s a feat that’s not so easy to pull off with a complicated fashion accessory such as an automobile. And the Volt is no ordinary automobile – it’s been compared to the iPhone, the Space Shuttle and a political football. Workers on the Volt production line may have to get used to an erratic work schedule.