Carmaker GM to Build Limited Number of Volts in 2011

General Motors is poised to begin selling the Chevrolet Volt electric vehicle by the end of 2010. But if you plan on buying one, you had better get ready to wait.

GM intends to manufacture just 10,000 of the Volt in 2011.

That translates to a maximum sales rate of about 835 Chevy Volts per month. Currently, General Motors sells more Cadillac Escalades than that, and it is only a sliver of the sales for best-selling models like the Chevrolet Malibu, of which the automaker sold 21,000 in June.

In 2012, General Motors intends to boost production to 30,000 Volts, but even that tripling of production will not meet demand for the vehicle, according to New Jersey neurologist Lyle Dennis, the author of the blog GM-Volt.com.

Dennis’ blog, which he began soon after the Volt debuted in 2007 as a concept vehicle, has enabled consumers to include their names on a list of possible buyers. The list currently has approximately 53,000 names, according to Dennis.

Although “hand-raisers,” as these list-signing consumers are referred to in the industry, do not always become actual buyers, GM spokesperson Rob Peterson concurs that GM could likely sell many more Volts than it is making.

Proceeding with Caution

Propelled by a lithium-ion battery, the Chevrolet Volt will be able to drive up to 40 miles on electric power alone after a full charge. To travel outside that range, the Volt will come equipped with a four-cylinder gas engine that will produce electricity to send power to the wheels.

However, as GM enters into largely unfamiliar territory, it will proceed with extreme caution, Peterson said.

“We want to make sure, at the beginning, that everything is right,” said Peterson.

Selling the electric vehicles is one thing, but dealerships also have to be ready to service them.

The Chevy Volt will also come with an updated version of GM’s OnStar telecommunication service, and those representatives must be ready to field calls that could be very different from the ones they receive from the drivers of other GM vehicles.

Long Waits, High Prices

With such limited supplies, dealerships might sell the Chevrolet Volt for substantially more than its MSRP. This commonly occurs when highly anticipated vehicles are initially introduced.

A few dealers are already accepting deposits on the Chevy Volt despite the fact that GM or Chevrolet has yet to announce a sticker price. The price is frequently predicted at roughly $40,000, or $32,000 after accounting for federal tax credits.

On the other hand, there is also a chance that demand for the Volt might not be as high as GM expects. By boosting production slowly, Dennis said, GM is hedging its bets, trying to prevent the embarrassing potential scenario of unsold Volts languishing on dealership lots.

“The last thing they want is to have to discount the Volt,” he explained.