The Chevrolet Bolt received a lot of bad news for 2021. Last month, General Motors recalled every single Chevy Bolt ever made to avoid a potential fire risk. Recently, The battery system was also found to have defects. These defects have so far caused 12 fires out of 147,000 Bolts produced.
These recalls are always a heavy loss for car manufacturers. After a series of unexpected recalls in the 1980s, Audi has almost dropped out of the North American market. In the 1990s, Ford installed over 13 million defective Firestone tires on Ford Explorer. in August of 2000, Ford had to do a recall on those tires, and the SUV suffered a catastrophic drop in sales after that.
Currently some dealers are buying up 2021 model year Bolts. The price they bought back this model was more than $28,000. This is more expensive than they retailed for just a few months ago? One dealer told motor1 that GM is willing to pay half the value of the car with the new battery. Buybacks will save more for them.”
Car manufacturers will save more with Voluntary Buyback
The last buyback program for 100,000 vehicles is related to Volkswagen’s Ddieselgate scandal. The German car manufacturer has offered very favorable buyback offers to owners and dealers.
Unlike the Dieselgate case, GM is not a part of a federal probe. The automaker is also trying to notify all Bolt owners as soon as possible. GM has also released a program to fix software bugs and fix bugs in the specific modules related to every battery pack.
Supply for auto factories is in short supply.
The chip shortage is forecast to last until 2023. As a result, the price of new and used cars has increased significantly. This helps keep Chevy Bolts prices steady and stable,
According to Manheim Auctions, used car prices are now 25% higher than they were a few months ago. New car production has been cut sharply, even by up to 40 percent in some factories.
For this reason, it may be advantageous for the GM to offer a voluntary buyback offer if they decide to address the issue this way. In particular, the shortage in inventory makes it possible for even unpopular models to sell for close to their MSRP. This is in contrast to previous years when GM had to offer many discounts and promotions to sell the Chevy Bolt.
Bad Publicity will bring a lot of notoriety to GM’s Electric Vehicle Program.
Over the next five years, GM’s success will depend on the electric vehicles it launches, with 30 models expected to be produced between now and 2025.