Archive for the ‘Marketing’ Category

 

Mar 07

The Chevy Volt Adoption Curve

 

Back in 2007 when I started GM-Volt.com I was tremendously inspired to do so by the potential the Chevy Volt offered: limitless conventional driving with the chance to use little or no gasoline.

Over the years we fanned the flames of enthusiasm here to show GM how much we wanted this car and actually helped to get the program launched.

We watched with great anticipation as the car went from a back of the napkin idea in GM VP Jon Lauckner’s head into a full production launch in late 2010.

In those days we often thought GMs projections of 10,000 Volt sales in 2011 and 45,000 in 2012 would be too little.  We believed and wanted to believe a car of this importance and tremendous technology would be adopted at even greater rates.

Over the past year or so we have finally had the chance to see just how many Volts would be sold.  It turns out not as many. GM only sold 7671 Volts in 2011 and are on a similar track for 2012 so far. The same thing has happened for the all electric Nissan LEAF as well.  And yet, many other EVs are either in the pipelines or already have been launched.

So what’s the deal with the adoption curve?

Although there is a lot of curiosity, interest, and awareness it appears much of the American pubic is remaining on the sidelines. There are several reasons why.

For one thing the Volt and other EVs remain costly compared to their gas counterparts. Cheap gas cars and cheap hybrids make the cost of operation lower than driving the Volt.

Despite the federal tax credit, the $40,000 Volt price tag remains out of reach to many would-be buyers and for many there many not be enough liability to enjoy the tax credit.

At present volumes GM isn’t in a position to drop price yet, but over time as economies of scale come fully into play they will.  In fact, just knowing that prices may one day drop may be keeping some on the sidelines for now as they wait for that day to come. The first plasma screen were $10,000 for 32 inches when they first came out.  Now they are a few hundred dollars and everybody has one. This will happen with the Volt but will take time.

Lack of familiarity with the technology and fear of the unknown are also keeping buyers away.  The media barrage about the irrelevant battery fires further kindled and grew this group significantly.  They may need years of error free operation by the population at large as well as proof the cars retain their value before they buy.

Furthermore the use of the Volt as a political tool has pushed some conservative would-be buyers into the sideline. Some conservative media pundits have portrayed the car as a tool for the democrats to get a government bailout for GM to save union jobs. Though many conservatives would love to avoid using foreign oil they are being manipulated in this way to view the car negatively.

So patient we must be.  The electric car is here to stay and the Volt is the best foot forward right now.  Sales will eventually come along, it just make take a a bit more time.

GM has announced they are temporarily suspending production at the DHAM plant until unsold inventory shrinks and will build the car not to a random number but to demand.  Simple smart business.

So in the meantime all of us owners need to do our part as pioneers spreading the word and sharing the message and helping encourage those on the sidelines help get this country off of oil and to see the car for what is really is – a tour-de-force of technology and shining example of American ingenuity and engineering.

GM has begun a new ad campaign recruiting Volt owners to tell the world how happy they are with this car.

Though I wasn’t invited to participate, I have offered to do so if GM wants.  I know I am very happy with it.

These days I continue to love driving my Volt and avoiding the use of gas. I have also launched an interesting website to aggregate all the day’s automotive news socially. It is called veh.cl.   Please check it out.

See you on the roads!

 

Feb 09

GM Exec: Four Seats Not Limiting to Volt Marketability

 


The Volt can’t be all things to all people, but GM has aimed to make the car as widely applicable as possible. Certainly the presence of a ranger extender goes a long way in giving the car advantages over pure EVs while still allowing drivers to cover most of their daily miles without gas.

GM designed the Volt’s 400 pound lithium-ion battery to fit into a T-shaped container that runs down the midsection of the car. This heavy weight in the center lowers the center of gravity, improving handling as well as helping to create a near 50:50 weight balance.

When the car was initially being redesigned, in order to keep the roof line low, the battery was so tall that it had to be run through the center of the rear bench, reducing the typically 3-person row, and 5 person capacity to a 2 seat row and 4 person capacity.

We hope and want the Volt to sell in high volumes, but some question if being a four-seater will reduce the car’s potential marketability.

According to former Volt marketing director Tony DiSalle, GM doesn’t see that as the case at all.

“Generally when you look at a vehicle in the small to mid category and realistically look at that middle seat in the back row it is often times not all that functional of a middle seat,” says DiSalle. “So I don’t see that as a major detriment at all.”

DiSalle tries to see it as even adding value in terms of adding storage space. The top of the pack has cupholders and storage space in it.

“There are some packaging advantages of the vehicle,” he says. “The cargo space in the back is very roomy. There’s an ability to put quite a bit of stuff back there.”

DiSalle believes that the center rear seat in most cars in the Volt’s size class are not realistically usable anyway.

“I would specifically say that middle seat if you look around in a small mid vehicle and just look at the dimensionality of the middle seat typically you have to question how functional or realistic that is,” he says. “I don’t think we have any major disadvantage with that at all.”

He would not say if GM plans to open that space for seating in the next generation Volt, by redesigning the battery. “I can’t say in terms of the next generation Volts what the gameplan is, we’re just not given out any specifics on the next gen product,” said DiSalle.

DiSalle thinks people are buying Volts to be involved in new technology and to reduce gas consumption. “So while its certainly not a utility vehicle that’s not why people are buying it per se,” he says.

 

Jan 19

GM Names New Chevrolet Volt Marketing Director in Executive Shakeup

 


Over the years we have been following the Chevy Volt, GM periodically has shuffled its marketing executives. This has on several occasions changed which executive is in charge of marketing the Chevrolet Volt. These changes often bring about a perceptible shift in the way the car is promoted and advertised.

For example, Maria Rhorer was the initial director of Chevy Volt marketing. She was responsible for the famous Chevy Volt song and dance, that I share with you for old times sake, and a few kicks and giggles.


Right after that she was replaced by Tony DiSalle, who brought the car through the important period of the pricing and initial market announcements and finally launch.

Joel Ewanick was brought in to GM as the head of US marketing after the bankruptcy restructuring, and has done an astoundingly good job. So much so, he was promoted to chief of global marketing. To fill his former position, today GM announced the appointment of Chris Perry who had just been VP of Chevrolet marketing. Perry and Ewanick were a dynamic duo in their days together at Hyundai, and it is expected their successful pairing there will continue at GM.

This brings us to the Volt.

In Ewanick’s shake-up moves, Volt director Tony DiSalle has been named as the new Vice President of Buick-GMC marketing. Obviously Ewanick felt DiSalle had done such a great job with the Volt he deserved this promotion.

Being the Volt marketing director is a very important position considering how much this car and its future generations and variants mean to the company. Thus GM has taken no time in naming DiSalle’s replacement.

GM-Volt has learned Cristi Landy will be taking over as the new director of Volt marketing. Landy has a long track record of involvement in and commitment to the Volt program. “She’s been with the program since the beginning,” says GM spokesperson Rob Peterson.

“There was such a strong push. From the get go, it was clear this was a priority,” said Landy about the Volt in a recent interview. “I have a lot of stamina,” she says. “I can stay up until midnight and wake up early.”

Congratulations to Mr. DiSalle on his promotion and the excellent job he did taking the Volt through its launch, and best of luck to you too Ms. Landi, we look forward to your work.

Source (GM)

 

Jan 03

Volt Beats LEAF in December Sales But Will $350 Lease Deal End?

 

I can honestly say this is a post I have been waiting to make for a long time.  I figured I’d get my first chance in a couple of days when automotive companies release December sales figures, but since the Associated Press got hold of this data earlier I can post it now.

December was the first month the Chevrolet Volt and Nissan LEAF electric cars started deliveries in the US, kicking off the electric car future for our nation.

Both companies have begun the process deliberately very cautiously with the intention of slowly ramping up sales this year.   Nissan and GM are carefully monitoring the early adopters’ experiences and will adapt to their feedback in these early stages.  Nissan has bit more to be concerned about as the advent of new owners experiencing unpleasant range anxiety or actually running out of charge could delivery a crushing blow to the nascent industry, and the company’s pure EV plans.

According to the AP, GM sold between 250 and 350 Chevy Volts in December while Nissan sold a mere 10 LEAFs.  Nissan has been careful to only allow LEAF sales in warm locales, as suddenly dropping them into the deep freeze of the north will lead to many low EV range reports.  In fact Volt ranges for me in the NY area are in the mid to upper 20s with high use of cabin heating and lots of high speed highway driving.

Also noted in this report is a rumor which was started here on the GM-Volt.com Ownership forum which was of course not mentioned, referenced, or linked by the author.  The rumor suggests that GM will end the current $350 per month Volt lease deal on January 3rd.  This deal is highly sweetened by a $2000 corporate cap cost deduction, a super-low 0.6% APR interest rate and a $7500 reduction in the depreciation value by the federal tax credit.

It was created to allow the car to be affordable to those zealous early adopters who really can’t afford a $41,000 car.  With a handful sold, the company and its leasing associate US bank might soon pull back.

GM is being a bit coy about what will happen to the lease deal.  In the report, GM spokesperson Rob Peterson was quoted as saying the lease deal “will extend into 2011.”  Peterson said the deal won’t last forever, though current waitlisters will be honored.  ”I don’t have the specifics on how long it will be out there,” he said.

Volt marketing director John Hughes shares a similarly vague message with GM-Volt.com.  ”It is our intention to continue the Volt lease into the 2011 CY,” he said.

In a recent post, I argued that purchasing was the better option anyway.  In a poll GM-Volt readers agreed. Of 564 respondents, 44% said they were buying the car, and only 15% said they were leasing it.  An additional 26% were undecided, while 15% of readers said they had no plans to own the car.

Source (AP)

 

Nov 19

Consumer Chevy Volt Production Has Begun

 

The Detroit Hamtramck (DHAM) plant where the Chevy Volt is being built has been busy turning out cars for some time.  Initially these were known as validation builds but eventually evolved to saleable builds, meaning they are as final as consumer production cars will be.

For a while these saleable build have been used as captured test fleet cars, initially for GM employees and most recently for me and other members of the Volt advisory board.

Reports are surfacing from Chevrolet dealers, however, that GM has already begun to produce cars that are going to actual consumers.

A report in the Detroit Free Press notes that a Volt allocated to a customer of Puente Hills Chevrolet was completed on November 9th.  Henna Chevrolet in Austin, Texas reports that one of their customer’s cars was built on November 10th.

DHAM Plant manager Teri Quigley declined to say how many customer cars have already been built.  GM initially planned to have the Volt launch ceremony on November 11th which was changed to November 30th based on the timing of the IPO.  This suggests that true consumer cars are being made, but that GM won’t announce it until the launch ceremony.

In fact I have noticed my own Chevrolet Volt order is showing up as code 3800 on the Chevrolet tracking site, has a VIN number, and is described as having been built on November 9th and awaiting shipment.

Besides only waiting for the launch ceremony, EPA labeling may be another  hold up on shipping.  GM’s VP Tom Stephens told Automotive News the Volts won’t be shipped until the EPA label arrives.  Those labels are actually finally expected to come “any day,” he said.

After the announcement of the big three car of the year awards, it is likely Volt demand will continue to skyrocket.  Stephens confirmed demand is already shaping up to far exceed capacity.  ”What do you hope for if you’re in the manufacturing business?” Stephens said. “To always have more demand than you can supply. They always say that’s a good problem to have. That’s the problem that we have right now.”

He even confirmed earlier reports that GM has already asked LG Chem to increase lithium-ion cell production so as to supply more cells than initially were planned.

GM’s chief of marketing Joel Ewanick also told reporters just how quickly demand is growing.  He said the number of Volt handraisers Chevrolet has signed up now exceeds 220,000, up from about 70,000 in the late summer, and he points out aggressive marketing and advertising hasn’t even begun.

What we longstanding supporters have long known is finally coming true.  GM has a huge hit on their hands, and a great way for the country to start reducing petroleum consumption.  In fact in my first 9 days of driving the Volt I have covered 568.1 miles, and used only 3.22 gallons of gas, for a total fuel economy of 176 mpg.  And the driving of this car is more splendorous, refined and limitless than I could have ever imagined.

Source (Detroit Free Press), (Automotive News), and (Reuters)

 

Nov 07

Seven Percent of US Carbuyers Could Afford a Chevy Volt

 

Over the years, and increasing at an ever-quickening pace, various research firms and other pundits publish prognostications of how many electric cars people will buy in the future.

Of course no one can predict the future, but electrifying the automotive fleet has tremendous cost associated with it, and automakers need some type of roadmap for planning. Those of us who want to get the country off of oil also look to these reports for guidance as well.

Recently the research company Bloomberg New Energy Finance issued a report, which come on the heels of the recent JD Power study that only concluded 100,000 EVs would be sold in the US in 2020 . The Bloomberg study was a bit more optimistic.

The authors also conclude as did JD Powers that high rates of adoption of EVs will depend critically on two factors: the rise of gas prices and the reduction of battery prices, however did more to find the ceiling for the market based on today’s costs.

To do so, the study used an interesting  two step model: first identifying the addressable market, or hose who could actually afford the cars, and second determining what percentage of that market actually would buy such a car.

Specifically Nissan LEAF and Chevrolet Volt sales were analyzed. The addressable market was determined solely as a function of price and the percentage of the car buying market which could pay it. It was determined that in 2011, 11% of US auto buyers could afford the $32,780 LEAF, and only 7% of buyers could afford the $41,000 Volt.  The $7500 tax credit was taken into account.

Seven percent of ten million in total sales would be 700,000 Volts.  The report does go on to say, however, “actual sales will be much lower and limited by vehicle availability.”

By 2030, plugin cars is predicted to account for 22% of auto sales.

“2011 will see the launch of a large number of new plug‐in hybrid and electric vehicle models around the world,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance. “It’s not just car companies who have a lot riding on their success ‐ utilities; oil companies; whole countries will feel the impact if there is rapid uptake.”

“Once we’ve seen the launch of mainstream plug‐in electric vehicles, we’ll have much more empirical data on consumer reactions, which will be vital in future forecasts,” said Glen Walker, lead transportation analyst at Bloomberg New Energy Finance.

Source (Bloomberg NEF) bia (Edmunds)

 
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