General Motors Co. has announced that they will stop production of the Chevrolet Volt hybrid vehicle for five weeks to allow their surplus of inventory to be depleted. This will be the third time that production of the Volt has been stopped for at least a month since the car first went on sale in December 2010. The lack of interest in the Chevy volt is being blamed on several factors:

  • A recent NHTSA investigation into battery fires resulting after crash testing.
  • The lack of charging stations in some states.
  • Electric car technology is still relatively new and problems need to be solved before it can be attractive to the mass market, the biggest complaints being lack of range and performance.
  • The production of electric vehicles by other automobile manufacturers.

GM hoped to sell 10,000 Volts last year, but ended up selling just over 7,600. Some feel the promotion of the electric vehicle by the Obama administration has failed. Even as gas prices continue to climb and government incentives are used, it is still not enough to get consumers to buy electric cars. The plant shutdown is expected to lay off almost 1,300 workers, and slow down companies that supply parts and batteries for the Volt.

The National Highway Traffic Safety Administration (NHTSA) is investigating certain GM vehicles after receiving twelve complaints of smoke and fire from the inside of doors of some Trail Blazer mid-size sport utility vehicles. The complaints are similar to consumer reports that lead the NHTSA to open an investigation into some 2007 Camry, Camry Solara and Rav4 vehicles, earlier this month. The NHTSA will be focusing on whether window switches on the GM and Toyota vehicles were manufactured by the same supplier. The investigation could affect up to 310,000, 2006-2007 Chevrolet Trailblazers. According to the safety administration, the Buick Rainer, Saab 9-7x, and the GMC Envoy share the same parts at the Trail Blazer, but these vehicle are not part of the investigation yet

The National Highway Traffic Safety Administration (NHTSA) is being accused of trying to keep the Chevrolet Volt battery fire a secret in an attempt to protect the government’s investment in the car company. Members of the House Committee for Government Reform released a report that states that the bailout of GM, creates business and political reasons for the government to sacrifice public safety. They criticize the time it took for the investigation to begin and the conclusion that the vehicle was safe, just two weeks into the investigation.

The NHTSA defends their position on the Chevy Volt investigation, saying that the agency is still developing protocols for dealing with battery powered vehicles. In the case of the Volt, they do not see the fire as a highway hazard because the problem could only be reproduced after impaling the battery with a steel rod. Still, it took at least a week for the fire to start. They added that GM was quick in responding to the problem, and developed protocols to drain the battery after a Volt has been in an accident.

General Motors is asking its Chevrolet Volt customers to return their vehicles to dealers so they can make repairs that will lower the risk of battery fires. The announcement comes after an investigation into a battery fire that consumed three vehicles at the National Highway Traffic Safety Administration (NHTSA) test facility. Follow-up tests to simulate the incident resulted in two out of three vehicles catching fire. GM and federal safety officials believe that the fires were caused by coolant leaking from damaged plastic casing around the batteries after a side-impact collisions. That coolant caused an electrical short, which sparked battery fires seven days to three weeks after the crashes.

Dealers will add steel plates around the Volt battery that will spread the force of a crash over a larger surface area. Tests carried out by GM and the government have shown that the repairs prevent battery damage and coolant leaks.

General Motors (GM) has issued a recall on some 2012 Chevrolet Sonic vehicles that may have been manufactured without the front brake inner or outer brake pads. The missing pads will significantly reduce brake performance increasing the chances of a crash. GM will inspect and install missing inner or outer pads, a new brake caliper and new rotors as necessary. Owners wanting more information on the recall can contact Chevrolet at 1-800-630-2438.

General Motors (GM) has issued a recall for certain 2010-2011 Cadillac SRX vehicles for a transmission shift cable that may have been improperly installed. The cable could become detached from the transmission bracket leaving the driver unable to shift gears, or the driver may be given an inaccurate indication that the transmission is in park. GM will be notifying customers of the recall starting this month, and dealerships will inspect the cable for proper installation. Owners wanting more information on the recall can contact Cadillac at 1-866-982-2339.

A rescue plan to save Saab has hit another road block as General Motors decides to stop supplying Saab 9-4X vehicles as well as automobile technology to Saab’s Chinese owners. According to GM, Saab’s third quarter results showed that it is not in the best interest of GM shareholders to continue investing time and money into the company. While Saab Cars North America has suspended warranty coverage on vehicles, GM says they will continue to cover any warranty remaining on Saab vehicles sold under GM ownership. This includes any 2009 and earlier model vehicles sold in the US and Canada.

Saab Cars North America has told owners of newer vehicles to keep receipts of all related warranty work or services performed until further notice. They said they are suspending the processing and payment of all claims, including recalls, towing, certified pre-owned coverage and no-charge maintenance until further direction from Saab Automobile AB, and that any unsold vehicles still sitting on dealers lots will be sold “as is”.

Saab has not filed for either Chapter 7 bankruptcy, which would lead to the liquidation of the company, or for Chapter 11 bankruptcy, which would result in the reorganization of the company under court supervision and protection from creditors.

GM sales strong in ChinaThe end of 2011 looks promising for the auto industry as vehicle sales climb almost 14% in November. Analysts predict that lower gas prices and a wider availability of Japanese automobiles, could lead the industry reaching its highest December sales in two years. The Big Three automobile manufacturers showed the biggest increases with Chrysler sales up almost 50%, Ford up 13%, and General Motors up 7%.

According to Edmunds.com, “Many consumers who held off buying a new vehicle because of the uncertain economy, or because of inventory shortages that caused prices to jump, are now making a purchase. The result is a “mini-bubble” that will most likely end in early 2012.