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Limited Edition Chevy Volt about to hit market
As we come close to the introduction of the Chevy Volt, individuals who have been putting off the purchase of a new car in order to get one of the first electric cars available to the public may have to wait even longer.
GM recently announced that it plans on producing 10,000 Chevy Volts in 2011, with plans to increase production to 30,000 in 2012.
According to the blog GM-Volt.com, there are 53,000 potential buyers who have shown interest in purchasing a Chevy Volt, meaning that demand for the new car far outstrips supply at the moment.
It appears that GM’s approach is one of caution, which I think is a calculated move as the company enters uncharted territory. The company needs to ensure that dealerships have been educated and are prepared for a new set of questions and potential issues related with a new car, even if they will have few to sell at first.
However, do you think that GM could be too cautious? What happens if one of its competitors announces a similar product, causing individuals to wait instead for that release? Nissan already plans on producing more Nissan Leafs during the first year of production than GM. Could GM’s caution be the company’s Achilles heel?
The “New Normal” consumer is speaking out
Further evidence that the “Great Recession” has had a significant effect on consumer behavior:
– In a recent Mintel consumer study, a substantial 76% of respondents state that they are “smarter shoppers” than they were a year ago.
– Almost seven in ten say they are trying to buy only necessary items, such as food (and that last number includes about half of those households earning more than $100k annually).
But price is not the only consideration. Only half of the consumers in the survey say that low price is more important than good customer service, while seven in ten say they only buy brands they trust.
What does this mean? It means that the definition of “smart shopper” is not just about price, it is more and more about value. And the concept of value has been extended to include trust in the brand, as well as good customer service.
These numbers look very much the same as they did a year and even two years ago, when the recession was just beginning to alter consumer behavior. This means that consumers are settling into a “less is more” mindset, while expecting more from their brand and shopping experiences.
Anyone in Financial Services (along with other industries) who is not conducting branding studies and consumer experience research should probably take note.
Auto news: Mercury out, Lincoln to be American luxury brand
It was announced in early June that Ford plans to discontinue the Mercury brand at the end of this year.
To those in the auto industry, this is not surprising news as Ford has alluded to its desire to concentrate on its more popular brands. It also shouldn’t be surprising since the Mercury brand currently accounts for less than a 1% market share in the US.
As part of Ford’s refocus, the company announced plans to expand the Lincoln lineup over the next four years.
Ford appears to be adopting the strategy used by both Chrysler and GM by aligning quality/status more with brand than with make or model.
I think the idea is that Lincoln would represent the luxury brand of the Ford Motor Company. Currently there are around 1,700 Mercury/Lincoln dealers in the United States (which will likely turn into Lincoln dealers soon).
Do you think the Lincoln brand, with an expanded lineup, can compete with the likes of Cadillac to be the king of American-made luxury cars?
Battle to be first electric car “sparking” hot
In all of my excitement to report about Nissan’s March 30, 2010 press release on the all-new Nissan Leaf, I totally overlooked an announcement from General Motors. On the eve of the 2010 New York Auto Show (the same day Nissan issued its press release), General Motors announced that the new 2011 Chevy Volt would be available on showroom floors in November 2010. How could I have not blogged about this at the same time?
For those of you who don’t know, the Chevy Volt is also an electric car that, according the company’s website, can create its own electricity. When fully charged (accomplished by plugging the car in overnight), the car can run 40 miles on pure electricity. After about 40 miles, a “range-extending gas generator” kicks in, which recharges the battery and adds up to 300 drivable miles on a single tank of gas. The ability to have a car re-generate energy will be a strong selling point in why consumers should pick the Volt over the Nissan Leaf. A jump start on sales won’t hurt either.
So I have to ask: who has been holding out to be a part of the first generation of electric car owners?