Topic: Volt and 500 Worst Product Flops of 2011

[Ontariodriver]

http://finance.yahoo.com/news/the-worst-product-flops-of-2011.html

3. Volt
Company: General Motors

GM (GM) was originally so excited about the Volt that the company had announced in January it was speeding up its roll-out by six months. But by November the excitement had fizzled out. Larry Nitz, GM’s executive director for vehicle electrification told Reuters, “It’s naive to think that the world is going to switch tomorrow to EVs [electric vehicles].” Indeed, sales for the vehicle have been consistently low. Only 125 models were sold in July 2011. This was after GM spokeswoman Michelle Bunker was quoted as saying that the Volt was “virtually sold out” due to its popularity — a statement later shown to be misguided. Adding insult to injury, Chevy Volts are under investigation for fires involving the cars’ lithium-ion batteries. For concerned Volt owners, GM has offered free loaner cars.

6. Fiat 500
Company: Fiat

This year, Fiat released its new 500 — a three door car that is under 12 ft. long. The car was expected to be a big seller, rivaling BMW’s Mini. Even before the car’s launch, however, detractors were predicting failure. Alan Mulally, CEO of Ford (NYSE: F), stated in Panorama magazine, “I do not see a large market in the U.S.A. for a smaller car than the Fiesta. Those that tried failed.” He was right. According to online magazine DailyTech, “Fiat expected to sell 50,000 500s during 2011 in North America. Through the first seven months of 2011, Fiat sold fewer than 12,000.” Sales were so poor that Chrysler Group, which manages the Fiat brand in the United States, ousted U.S. chief Laura Soave this past November.

[Sir Osis of Liver]

Autoblog had it right:

For our money, it's too early to call either of these vehicles flops – moving 20,000 relatively expensive very small cars for a new-to-North America (well, "new again," at least) brand doesn't sound too bad to us, and putting the Volt on the list when it wasn't available to most consumers strikes us as Yahoo! Finance trolling for controversy.

http://ca.autoblog.com/2011/12/29/fiat-500-chevy-volt-listed-among-biggest-product-flops-of-2011/

[vdk]

 

Given the price and type of vehicle the Volt is, I don't think they did bad at all.

[richink]

Yahoo news has a very bad habit of reposting crap from other sites or producing their own crap without researching the whole situation.

The Volt is far from a flop, it's an expensive proposition within a niche market. I'm sure GM would love to sell 100,000 of them in a year but I don't think that is the intent.

50,000 Fiat 500's WAS overzealous even with JLo and her butt all over the ads. I read through some of the Yahoo posters and it seems that the consensus is that the 500 should have been priced at $12k to start, not $15k. It sounds trivial but that's how all the Asian makers got their footholds.

[DKaz]

50,000 Fiat 500's WAS overzealous even with JLo and her butt all over the ads. I read through some of the Yahoo posters and it seems that the consensus is that the 500 should have been priced at $12k to start, not $15k. It sounds trivial but that's how all the Asian makers got their footholds.

Being a Dodge product, you can haggle the price down, no? Problem is, not a lot of the demographic (under 30?) who would likely buy this vehicle would be comfortable with haggling so they don't look at the car in the first place.

Also, this thing is tiny. At least with a Mini Cooper you have a little bit of cargo space with 4 seats.

[airbalancer]

50,000 Fiat 500's WAS overzealous even with JLo and her butt all over the ads. I read through some of the Yahoo posters and it seems that the consensus is that the 500 should have been priced at $12k to start, not $15k. It sounds trivial but that's how all the Asian makers got their footholds.

Being a Dodge product, you can haggle the price down, no? Problem is, not a lot of the demographic (under 30?) who would likely buy this vehicle would be comfortable with haggling so they don't look at the car in the first place.

Also, this thing is tiny. At least with a Mini Cooper you have a little bit of cargo space with 4 seats.

I usually see older people ( older then me )driving this and Veloster

[articsteve]

You're never going to get reasonable sales numbers of any vehicle with retail exposure.  The 500 should have been rolled out of existing Dodge/Chrysler stores.  This stand alone Fiat/Alfa franchise thing DOA in this country.

As far as the Volt goes it was never intended to "make" money.  It was a halo vehicle that GM created to help support justification to the massive bailout of which approx 50 Billion has yet to be recovered.  Let's say the Volt represents $5 Billion of that.  When's the break even day? 

[rrocket]

Although I'm not a fan of the Volt, I don't think it's a flop....yet.

[richink]

Being a Dodge product, you can haggle the price down, no? Problem is, not a lot of the demographic (under 30?) who would likely buy this vehicle would be comfortable with haggling so they don't look at the car in the first place.

I'm not sure. I was in a Dodge store in '94 when they just brought out Neon's and still had Mitsubishi Dodge Colt's on the lot. Base models had absolute jack in them for margin and there were no programs. I don't think a $2k to $3k haggle process is possible.

Chrysler should have figured out a way to make this the least expensive new car on the market. $10995??? $11995 with power steering and a CD player??? Their load it up and make it a "premium" model was the wrong way to go. Back in my Hyundai days I used to sell up to a dozen Accent's a month just with those basics at $14.5k driveaway or just shy of $15.5k if you wanted automatic. OK sell the boutique models with canvas roof's and bring in the pavement eating Abarth models, but the majority doesn't want the fancy colour coordination or JLo spread across the hood.

[CarGuyJay]

Being a Dodge product, you can haggle the price down, no? Problem is, not a lot of the demographic (under 30?) who would likely buy this vehicle would be comfortable with haggling so they don't look at the car in the first place.

I'm not sure. I was in a Dodge store in '94 when they just brought out Neon's and still had Mitsubishi Dodge Colt's on the lot. Base models had absolute jack in them for margin and there were no programs. I don't think a $2k to $3k haggle process is possible.

Chrysler should have figured out a way to make this the least expensive new car on the market. $10995??? $11995 with power steering and a CD player??? Their load it up and make it a "premium" model was the wrong way to go. Back in my Hyundai days I used to sell up to a dozen Accent's a month just with those basics at $14.5k driveaway or just shy of $15.5k if you wanted automatic. OK sell the boutique models with canvas roof's and bring in the pavement eating Abarth models, but the majority doesn't want the fancy colour coordination or JLo spread across the hood.

Indeed... and now enter the GUCCI (Yes THE Gucci (Badging and all)) inspired design edition .... really???... so good they renamed it the Fiat FABULOUS!   

[johngenx]

Even in Canada, where we like small cars more than south of the 49th, we equate small with inexpensive.  The 500 is cute, but looks like an entry level economy car.

[Giant Dwarf]

Anyone who thinks the Volt will single-handedly convert the mass populous to EVs is misguided.  What's important is that EVs are coming -- perhaps not to replace gas cars any time soon, but they're coming -- and GM has done a great job bringing an EV that serves as a cool-looking car that actually functions as a car.  The fact that they're even selling this vehicle makes it a success in my opinion and I look forward to the future applications of 'extended range' EVs that are even better sorted out.

[articsteve]

The fact that they're even selling this vehicle makes it a success in my opinion

It's not selling.  They are going out the door via a give-a-way LEASE:


$399/month 36 month lease.

$2,899 due at signing (after all offers)

12K miles or 20K km

Bumper to bumper warranty.

What do Canadians get for their 8 BILLION contribution?  The Regal line 

[rrocket]

What do Canadians get for their 8 BILLION contribution? 

Steve...don't be an idiot!!  It was $10.6 Billion!!   

[articsteve]

haha

But honestly, Canadians getting shafted even on the Volt lease.  It never ends in this country.  Who's in charge for Christ's sake!  Oh ya, I forget yet again, the anti-Christ.

[Shnak]

The fact that they're even selling this vehicle makes it a success in my opinion

It's not selling.  They are going out the door via a give-a-way LEASE:


$399/month 36 month lease.

$2,899 due at signing (after all offers)

12K miles or 20K km

Bumper to bumper warranty.

What do Canadians get for their 8 BILLION contribution?  The Regal line 

That's a great point. Even I would consider leasing a Volt at these prices (if I needed a small 4-seater...)

[Giant Dwarf]

The fact that they're even selling this vehicle makes it a success in my opinion

It's not selling.  They are going out the door via a give-a-way LEASE:


$399/month 36 month lease.

$2,899 due at signing (after all offers)

12K miles or 20K km

Bumper to bumper warranty.

What do Canadians get for their 8 BILLION contribution?  The Regal line 

You've misunderstood my intent.  My point is that GM has made a great effort to bring a highly effective EV to market.  It is costly, but then any new technology is when it first arrives on the scene.  Typically only early adopters will make the leap of faith (or spend the big bucks), so it's not surprising that it's not a huge seller. 

I will also concede that it's far from perfect, but it does work well -- at least in my week-long experience it did.  And if this is the jumping off point for future, better 'extended range EVs', then more power to 'em. 

You've got to start somewhere and it's a solid first effort.