Chevy-Dealing Congressman: "There Is No Market" For The Volt

Edward Niedermeyer
by Edward Niedermeyer

In addition to being a representative from Pennsylvania, Republican Mike Kelly is also a Chevrolet dealer whose family has sold Chevys since 1953. But in recent hearings on government fuel economy ratings, he laid into his brand’s green halo car, the Chevy Volt with surprising zeal. Or, not-so-surprising, when you realize that he decided to run for congress in the wake of the bailout-era dealer cull.

I’m a Chevrolet dealer… we have a Chevy Volt on the lot, it’s been there now for four weeks. We’ve had one person come in to look at it, just to see what it actually looks like… Here’s a car that costs $45,763. I can stock that car for probably a year and then have to sell it at some ridiculous price. By the way, I just received some additional information from Chevrolet: in addition to the $7,500 [federal] tax credit, Pennsylvania is going to throw another $3,500 to anybody foolish enough to buy one of these cars, somehow giving them $11,000 of taxpayer money to buy this Volt.

When you look at this, it makes absolutely no sense. I can stock a Chevy Cruze, which is about a $17,500 car and turns every 30 to 40 days out of inventory… or I can have a Volt, which never turns and creates nothing for me on the lot except interest costs… So a lot of these things that we’re seeing going on have a tremendous economic impact on people who are being asked to stock them and sell them. There is no market for this car. I do have some friends who have sold them, and they’re mostly to people who have an academic interest in it, or municipalities who are asking to buy these cars.

With dealers like that, who needs competitors? Seriously, Kelly even says he fired the guy who ordered a Volt for his dealership… which he then counts against the Volt’s job creation record. Hit the jump for the rest of his quote.

I can tell you… as far as job creation, the guy who ordered that Volt for my store is no longer in that job. So it actually worked against him. I was told that the reason that car is on our lot is that General Motors told him he had to stock it. I said “let me understand. I told you that under no circumstances were you to order a Volt,” and he said “yeah.” “So, why did you order it?” “Because General Motors told me.” “Is this the same General Motors that tried to take my Cadillac franchise from me? These are the guys you’re listening to, but the guy who signs your paycheck doesn’t have as much influence as the guys who tried to take away the franchise?”

So clearly Kelly has his reasons for disliking his business partners at GM, but bashing a car that Chevy managers insist is a brand-building halo is still surprising. In any case, this somewhat rambling but fascinating critique eventually led to question “do you see any market for this car at all?” directed at Edmunds CEO Jeremy Anwyl… who first took the opportunity to defend the Volt.

Well, there’s a little bit of good news. First, you mentioned that it did create some traffic for you, albeit one person. But that is something the car companies tout, that these vehicles do attract some interest, some traffic, not necessarily buyers. And let me also say, the Volt is actually a very nice vehicle. We actually bought one ourselves, it’s in the long-term fleet… people actually enjoy it.

But then came the bad news.

The problem that I think you’ve outlined is really twofold. One of them is that there are all sorts of inducements for people to be buying these vehicles… and yet when you look at whose been buying these vehicles, and there are people buying them, they are at the very high end of the demographic scale… Right now we’re seeing people who would have bought that vehicles anyway, without a tax credit, getting the tax credit at the expense of other taxpayers, and you have to wonder about the wisdom of that.

The second part of the Anwyl’s critique would have to wait, because after getting in one last knock at the Volt, Kelly was out of time. Rep Jackie Speier (D-CA) was next in line, and she jumped on Kelly’s Volt-bashing, telling him

First of all, to Mr Kelly, send that Volt to California! It doesn’t have to stay on your lot, because there is a waiting list in my district, at my Chevrolet dealership, of six months to get a Chevy Volt.

To which Kelly replied,

Give me the name of the dealer, and I’ll send it out there right away. If he’ll pick up the transportation cost, I’d love to do that.

The name was exchanged, and jokes were made about bipartisanship and “working together.” Then the partisan back-and-forth continued. You gotta love Congress.


Edward Niedermeyer
Edward Niedermeyer

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  • Max Entropy Max Entropy on Oct 15, 2011

    Xeranar: "Clinton was stuck with a hard-core right-wing congress that tried to impeach him over whether or not he had an affair with an intern. He reformed welfare because they forced his hand, just like he made do with NAFTA because the Republican answer was much worse." Is that what they're teaching you kids now? LOL. Here's what happened. Clinton was sued for sexual harrassment by a former Arkansas state employee. During his testimony before the grand jury, Clinton was asked about other sexual affairs with employees, i.e. Lewinsky. He LIED. The lies were eventually proven with DNA evidence. Congress impeached him for committing perjury before the grand Jury. The Arkansas Bar disbarred him. He settled with Jones for $850,000. He was impeached for committing perjury, NOT for having an affair. BTW, Clinton had a Democrat congress for two years, during which he tried to nationalize healthcare (Hillarycare). He couldn't even get his Democrat congress to pass it. The electorate was so enraged about the Democrats pushing Hillarycare that they threw the D congess out in '94 and installed a Republican congress. Being a political strategist, he went along with the Republican initiatives of reforming welfare and NAFTA to save his political hide.

  • Effinayright Effinayright on Oct 16, 2011

    Sorry, but Obama signed the $7500 for the Volt. Bush signed a $7500 credit for new homebuyers. Both were idiotic moves, in my book.

  • Jonathan IMO the hatchback sedans like the Audi A5 Sportback, the Kia Stinger, and the already gone Buick Sportback are the answer to SUVs. The A5 and the AWD version of the Stinger being the better overall option IMO. I drive the A5, and love the depth and size of the trunk space as well as the low lift over. I've yet to find anything I need to carry that I can't, although I admit I don't carry things like drywall, building materials, etc. However, add in the fun to drive handling characteristics, there's almost no SUV that compares.
  • C-b65792653 I'm starting to wonder about Elon....again!!I see a parallel with Henry Ford who was the wealthiest industrialist at one time. Henry went off on a tangent with the peace ship for WWI, Ford TriMotor, invasive social engineering, etc. Once the economy went bad, the focus fell back to cars. Elon became one of the wealthiest industrialist in the 21st century. Then he went off with the space venture, boring holes in the ground venture, "X" (formerly Twitter), etc, etc, etc. Once Tesla hit a plateau and he realized his EVs were a commodity, he too is focused on his primary money making machine. Yet, I feel Elon is over reacting. Down sizing is the nature of the beast in the auto industry; you can't get around that. But hacking the Super Charger division is like cutting off your own leg. IIRC, GM and Ford were scheduled to sign on to the exclusive Tesla charging format. That would have doubled or tripled his charging opportunity. I wonder what those at the Renaissance Center and the Glass House are thinking now. As alluded to, there's blood in the water and other charging companies will fill the void. I believe other nations have standardized EV charging (EU & China). Elon had the chance to have his charging system as the default in North America. Now, he's dropped the ball. He's lost considerable influence on what the standardized format will eventually be. Tremendous opportunity lost. 🚗🚗🚗
  • Tassos I never used winter tires, and the last two decades I am driving almost only rear wheel drive cars, half of them in MI. I always bought all season tires for them, but the diff between touring and non touring flavors never came up. Does it make even the smallest bit of difference? (I will not read the lengthy article because I believe it does not).
  • Lou_BC ???
  • Lou_BC Mustang sedan? 4 doors? A quarterhorse?Ford nomenclature will become:F Series - Pickups Raptor - performance division Bronco - 4x4 SUV/CUVExplorer - police fleetsMustang- cars
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