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January 26, 2012 at 6:17 pm

GM's Reuss: Volt sales hurt by bad publicity

Washington —General Motors North America President Mark Reuss said Thursday that sales of the extended-range electric Chevrolet Volt have been hurt by bad publicity.

Asked if Volt sales have taken a hit in January, Reuss said, "Oh, yes."

"It's less than the way it was," Reuss said on the sidelines of the Washington Auto Show.

He said bad publicity from the government's investigation into fire risks of post-crash Volts is "definitely a component" of the decline in sales.

GM had its best-ever sales month for the Volt in December with about 1,530 sold. GM sold about 7,700 in 2011, below GM's target of 10,000.

Reuss said that when GM restarts production in February at its Detroit-Hamtramck Assembly plant, it will build Volts in a "very reasonable" volume. He said there is some pent-up export demand.

Reuss says Volt awareness has gone up over the last two months in the wake of publicity over the government's investigation.

GM is focused on rehabilitating the vehicle's reputation. "It's a tough road, but we've got to do it," Reuss said.

Reuss sent a letter to Volt owners Thursday, thanking them for their support.

The letter comes a day after a congressional hearing into the Obama administration's handling of disclosure of a fire in a crash-tested Volt. GM Chairman and CEO Dan Akerson testified at that hearing. He said the Volt is safe, and that the car has become "a political punching bag."

On Wednesday, General Motors began airing a television ad filmed in Hamtramck touting the Volt as "the car America had to build" and saying GM built it "for our town, for our country, for our future."

Chevrolet ad executive Rich Martinek told The Detroit News the ad was released to coincide with Akerson's testimony and his "open letter to America," which ran in newspapers nationwide Wednesday.

GM abandoned this month its sales target of 45,000 Volts in the United States for 2012, saying instead it would match "supply to demand."

Bryce G. Hoffman contributed.

dshepardson@detnews.com

(202) 662-8735

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