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    Chevrolet Volt Gets A Heap Of Incentives To Move Stock


    William Maley

    Staff Writer - CheersandGears.com

    June 11, 2013

    At the moment, Chevrolet is currently sitting on a 140-day supply of Volts, more than double the amount supply analysts say is healthy. How is General Motors going to cut down the supply? By piling on incentives!

    Chevrolet spokeswoman Michelle Malcho tells The Detroit News the company will be offering $4,000 off on 2013 Volts and $5,000 off on 2012 models. Alternatively, you can do a 36-month lease on a Volt for $269 with $2,399 down at signing or can be purchased with zero percent financing for 48 months and receive $3,000 off.

    Total Volt sales for the year stand 7,157 units, an increase of 1.4 percent. However, the past three months have seen Volt sales drop when compared to the same time last year.

    Source: The Detroit News

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

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    This would be a sweet ride for you Drew.

    Interesting is I built both a 2013 and 2012 model on Chevy's web site and the 2012 came out $185 higher than the 2013 and this included their 4000 or 5000 discount. Then with the fed tax credit, you still end up at about 32,500 for a fully loaded VOLT.

    Not bad, but still need to do more I think. Hopefully it will help move auto's.

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    I also see this as a good time to see how people will react to a lower priced Volt. It could show us what the lower price second gen could do.

    Whole sales may be slower else where they have been strong here in Ohio. It is common now to see one nearly every time I go out and it is not the same one.

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    better get em now, the states are waking up and realizing they haven't taxed the snot out of electric cars yet, are starting to put taxes on them...........

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    Consumers are used to seeing big discounts on American cars. Open a local newspaper, and you'll see ads screaming THOUSANDS OFF FOUR AT THIS PRICE BUY NOW. So I wonder whether this will have much effect on Volt sales, or whether Nissan's strategy to lower the MSRP makes more sense. IMO, a price drop leaves a more lasting impression on the consumer and speaks to the evolution and maturity of the technology.

    If it were widely known that the net MSRP were $27,495, rather than $39,995 before tax credits, Volt would appear more accessible to more individuals.

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    Consumers are used to seeing big discounts on American cars. Open a local newspaper, and you'll see ads screaming THOUSANDS OFF FOUR AT THIS PRICE BUY NOW. So I wonder whether this will have much effect on Volt sales, or whether Nissan's strategy to lower the MSRP makes more sense. IMO, a price drop leaves a more lasting impression on the consumer and speaks to the evolution and maturity of the technology.

    If it were widely known that the net MSRP were $27,495, rather than $39,995 before tax credits, Volt would appear more accessible to more individuals.

    I agree, I think if GM was to move to a $29,995 MSRP for a base VOLT we would see far more VOLT's move out the door. $29,995 plus the gov $7500 gives one sweet ride for for $22,495. I could then see thousands of these move every month and this would drive the technology into other versions.

    I still believe that GM is missing a HUGE opportunity to have a Tahoe/Yukon/Escalade on this system.

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      "General Motors doesn't have to be relieved. They can be proud of giving Opel-Vauxhall a better future," said Tavares.
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      “For GM, this represents another major step in the ongoing work that is driving our improved performance and accelerating our momentum. We are reshaping our company and delivering consistent, record results for our owners through disciplined capital allocation to our higher-return investments in our core automotive business and in new technologies that are enabling us to lead the future of personal mobility.
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      The transaction is another step in GM’s ongoing work to transform the company, which has delivered three years of record performance and a strong 2017 outlook, and returned significant capital to shareholders. It will strengthen GM’s core business, support its continued deployment of resources to higher-return opportunities including in advanced technologies driving the future, and unlock significant value for shareholders.
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      GM will also participate in the future success of the combined entity through its ownership of warrants to purchase shares of PSA. GM and PSA also expect to collaborate in the further deployment of electrification technologies and existing supply agreements for Holden and certain Buick models will continue, and PSA may potentially source long-term supply of fuel cell systems from the GM/Honda joint venture.
      Additional Information
      Terms of the Agreement
      Opel/Vauxhall automotive operations will be acquired by PSA for €1.3 Bn. GM Financial’s European operations will be jointly acquired by PSA and BNP Paribas for 0.8 times their pro forma book value at the closing of the transaction, or approximately €0.9 Bn.
      The transaction has a total value of €2.2 Bn, for Opel/Vauxhall automotive operations and 100% of GM Financial’s European operations.
      The transaction value for PSA, including Opel/Vauxhall and 50% of GM Financial’s European operations, will be €1.8 Bn.
      In connection with this transaction, GM or its affiliates will subscribe warrants for €0.65 Bn. These warrants have a nine-year maturity and are exercisable at any time in whole or in part commencing 5 years after the issue date, with a strike price of €1. Based on a reference price of €17.34 for the PSA share5 , the warrants correspond to 39.7 MM shares of PSA, or 4.2% of its fully diluted share capital6. GM will not have governance or voting rights with respect to PSA and has agreed to sell the PSA shares received upon exercise of the warrants within 35 days after exercise.
      The transaction includes all of Opel/Vauxhall’s automotive operations, comprising Opel and Vauxhall brands, six assembly and five component-manufacturing facilities, one engineering center (Rüsselsheim) and approximately 40,000 employees. GM will retain the engineering center in Torino, Italy.
      Opel/Vauxhall will also continue to benefit from intellectual property licenses from GM until its vehicles progressively convert to PSA platforms over the coming years.
      In connection with the transaction, GM will take a primarily non-cash special charge of $4.0-4.5 Bn.
      Ongoing Pension Fund Commitments
      All of Opel/Vauxhall’s European and U.K. pension plans, funded and unfunded, with the exception of the German Actives Plan and selected smaller plans will remain with GM. The obligations with respect to the German Actives Plan and these smaller plans of Opel/Vauxhall will be transferred to PSA. GM will pay PSA €3.0 Bn for full settlement of transferred pension obligations.
      Closing Conditions
      The transaction is subject to various closing conditions, including regulatory approvals and reorganizations, and is expected to close before the end of 2017.
      Warrants
      The issuance of the warrants is subject to the vote of shareholders at PSA’s General Meeting of May 10th, 2017. The three main shareholders of PSA (the French State, the Peugeot family and DongFeng) representing in aggregate 36.6% of the share capital and 51.5%7 of the voting rights of PSA have undertaken to vote in favor of the resolution related to the issuance of the warrants to GM. In the event the warrant issuance reserved to GM and its affiliates is not approved by PSA’s General Meeting, PSA will settle the €0.65 Bn in cash over five years.
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