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Some Chevy dealers ceasing Volt sales due to costly tools

Posted Jan 2nd 2013 1:30PM

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Automotive dealerships are accustomed to training sales and service professionals when new models arrive, but the plug-in hybrid Chevrolet Volt – and its pricey additional tool and equipment costs – is frustrating some low-volume retailers to the point of dropping the model from the showroom. A recent report says that a few discontented dealers have stopped carrying the innovative sedan because General Motors is requiring a more significant investment in the near future, and the specialized costs (in excess of CAD$5,000) aren't offset by the model's slow sales at those establishments.

This time last year, Chevrolet had 2,614 stores in the US, certified to sell its Volt (out of 3,079 dealerships). A full 70 per cent of the sales were generated by the 300 highest-volume dealers – leaving 2,314 dealerships to fight for the remaining 30 per cent. Some of those non-metro stores, like Jim Barnard Chevrolet in Churchville, NY, have sold just five units in the past two years (they are understandably opting out).

Yet some dealerships, like John Holt Chevrolet-Cadillac in Chickasha, OK, are soldiering forward. Even though they have sold only five Volts since its introduction, the owners have chosen to make the investment as sales are on the upswing (Volt sales have more than tripled this year) and GM is introducing other plug-in hybrids with similar technology (Cadillac ELR) in the near future. "I figured I'd be foolish not to buy the damn CAD$5,300 tool," said owner Holt.

2012 Chevrolet Volt Vs Toyota Camry Hybrid 0-60 MPH Mashup Review

News Source: Automotive News

Image Credit: Copyright 2012 Seyth Miersma / AOL

Category: Budget, Electric, Hybrid, Car Buying, Chevrolet, Earnings/Financials

Tags: chevrolet, chevrolet volt sales, retailers, tool investment, volt

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