DETROIT – Yesterday, General Motors Co. unveiled its plan to spend
$449 million in two Michigan plants to develop and produce Cadillac ELRs and
Chevrolet Volts, the Wall Street Journal reports. The two models are
hybrid-electric vehicles.
“These investments will help the next-generation Chevrolet Volt build
on its position as the leader in electrified propulsion,” said GM North America
manufacturing chief Gerald Johnson.
GM is funneling the money as part of an overall plan to spur Volt
sales, which have been less than stellar. As of March 31, GM had sold just over
3,600 models, a decline of 15% compared with the same time period in 2013. The
drop comes after the company lowered the car’s price tag by $5,000 to $35,000.
Part of the lack of appeal is the Volt’s low range of around 40 miles
per battery charge before switching to gasoline. GM will release the
next-generation Volt in 2015, which will add some mileage per charge.
Meanwhile, the ELR hasn’t had a long enough
track record to gauge customer enthusiasm. GM had to recall 656 of the 2014
models due to a possible defect in the electronic stability control system.