General Motors Company (NYSE:GM) has been forced by circumstances to withhold production of its Chevrolet Volt because of sluggish sales. The company hopes that suspending production for a few weeks will allow room for sales to move faster before machines start running again. General Motors plans to stop production of the hybrid Chevrolet Volt for four weeks in the summer, and the step will also allow for improvements in plant were the car is produced.
Slower sales are chocking General Motors Company (NYSE:GM) and the company wants to allow itself some breathings space by halting production of Chevrolet Volt. The plant that produces the Volt will cease operation for four weeks during which some repairs will be carried out in the factory. The repairs have much to do with the production of 2016 Chevy Volt model, which calls for certain manufacturing line adjustments.
General Motors Company (NYSE:GM) will also take the opportunity to make preparations for the production of Cadillac CT6.
The Volt plant will remain silent between June and July, but when things resume work is expected to move faster as General Motors hopes to bring the newly unveiled Cadillac CT6 to market. The company looks to its revamped nameplates to bolster sales.
The demand for the Volt has not been what General Motors Company (NYSE:GM) expects it to be, at least looking at the latest sales figures. In March 2015, Volt sales slumped 48% compared to the same month a year ago. GM only managed to sell 1,874 units of Chevy Volt in the month as demand for hybrid and electric cars soften.
The decline in the demand for electric or hybrid cars has linked to the steep fall in gas prices, which on the other has boosted sales of fuel guzzling SUV brands.
General Motors Company (NYSE:GM) has a plan to bring more new vehicles to market this year as the company seeks to boost sales and profitably following a tough 2014.