General Motors Co. (NYSE:GM) is planning to invest more on its Chevy Volt than it has in previous years. The company has tried to fix its failing hybrid cars for years now. However, tough competition hasn’t let the company advance much into this market thus causing the sales of the Volt to decrease sharply.
Mary Barra, th CEO of General Motors Co. (NYSE:GM) stated that the company will soon create a new facility for manufacturing requiring a $300 million investment. With this statement she is telling the market that the auto manufacturer is working on improving its manufacturing stance. Investors should be ready to see what the auto manufacturer has in store for its customers. This improvement may be a turning point for the company.
She stated that breakthrough technology should be given to the customers because this is what they want therefore the investments that the company is putting in its Chevy Volt and its Michigan show how committed General Motors Corp (NYSE:GM) is in the advancement of the industry that it works in. General Motors Co. (NYSE:GM) is ready to give its Volt another try with the hope that the market will accept it this time and sales will rise.
The PR division of the company also stated the financial commitments of its Volt were as follows:
General Motors Co. (NYSE:GM) announced over $11 billion in its investments in the United Stated ever since 2009 with nearly half of the total investment focused on Michigan.
General Motors Co. (NYSE:GM) announced back in 2008 that it were to build the Volt. Ever since then the company has seen increased competition. Production problems didn’t really do well for its public image at the time. Engine fires which erupted from its Volt battery caused the company to grow weaker in its public image even though National Highway Traffic Safety Administration reported the danger to be negligible.
The Volt’s competitors are industry giants like Tesla Motors Inc. (NASDAQ:TSLA) The competitor has increased building its electric vehicle automobiles to keep the Volt from dominating in the market thus being copied by firms like Ford (NYSE:F) who just recently announced that its engineers bought a Model S automobile and took it apart to study then put it back together.
Thus with increased competition, General Motor Co.’s (NYSE:GM) Volt will need careful study and upgrades so that it hits the market with a differentiating factor and consumers will be attracted to it.
It isn’t like the market won’t let in competitors. The brand image that the company has created will sure enough let the vehicle enter the market; it’s just how consumers will perceive it over other vehicles available in the market that really counts.
The sales of General Motor’s (NYSE:GM) Volt have been discouraging. Its sales dropped in September by 21% hence making the sales amount to 1,394. Sales dropped by 13% in the initial nine months making them reach an amount of 14,450.