Monday, October 18, 2010

The Car Exam News #21: The Chevy Volt in small supply, and Chrysler's lineup grows



Follow The Car Exam on Facebook "Car Exam" and Twitter!

Chevy Volt to be in small supply

If you're eager to buy a new Chevrolet Volt, you may not want to get your hopes up at first: Automotive News reports that GM will only produce 10,000 Volts in 2011--yikes! This may be a serious tactical error on GM's part. According to the Automotive News article, Chevrolet will have a large marketing blitz to promote the Volt, but if eager customers want to go out and buy a Volt--and find out they probably won't be able to get their grubby paws on them until 2012--they may just say "forget it" and seek out alternate vehicle options (some may turn to the Nissan Leaf--if Nissan doesn't do the same thing GM is doing). GM may hope "pent up" customer demand will drive Chevrolet Volt sales, but they had better hope a lack of Volts doesn't diminish it.

Source: Automotive News (http://www.autonews.com) 10/18/10


Chrysler's lineup grows

Apparently, Chrysler/Fiat thinks the more, the merrier: The Detroit Free Press reports that Chrysler is bucking the trend set by Ford and General Motors: instead of subtracting brands from their model lineup, Chrysler/Fiat is adding new brands. The addition of the Fiat brand in early 2011, Chrysler has already separated their pickups from the Dodge brand into their own Ram brand, and after the Fiat launch, Alfa Romeo will be re-introduced in to the U.S., and five models from that brand will be sold.

That is quite a gamble for Chrysler/Fiat. However, several facts remain: if the cars have terrible build quality and reliability and no one buys them, Chrysler is once again "up a creek without a paddle." Sergio Marchionne and his crew had better work hard--and pray they get it right.

Source: The Detroit Free Press (http://www.freep.com/article/20101018/BUSINESS01/10180318/1331/Chrysler-expands-as-others-cut-brands) 10/18/10

P. Scott

No comments: