GM's (GM) Chevy Volt is On Fire...Literally
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Price: $76.65 +0.54%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: -0.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: -0.7%
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Though batteries and metal have been around for years, the combination of the two into a commercially produced vehicle dedicated to human transportation is still a bit tricky. Recent National Highway Traffic Safety Administration (NHTSA) tests prove that.
Reports last week had General Motors' (NYSE: GM) new Chevy Volt in a pickle: certain crash tests revealed its battery would catch fire. The fires, which were technically referred to as the electrical sort, happened to occur up to three-weeks after an initial vehicle New Car Assessment Program side pole crash test.
Hence, the concern.
This morning, GM held a conference call in order to quell some fears and reassure Volt owners that the car was safe. Further, a team of senior engineers was formed to evaluate available changes in preventing post-crash electrical fires.
GM also noted that no fires had occurred on roads, and NHTSA wasn't investigating any incidents outside its own tests.
Finally, for those still concerned of a potential vehicle fire, GM said it would issue a loaner vehicle free of charge until the Volt issues have been resolved.
On reports, GM shares dipped as much as 8 percent last week, but are up over 2 percent on Monday's session. GM has sold just over 5,000 Volts in the U.S. in 2011 through October, according to the most recent data. For comparison, about 11,200 Corvettes have been sold over the same period.
Reports last week had General Motors' (NYSE: GM) new Chevy Volt in a pickle: certain crash tests revealed its battery would catch fire. The fires, which were technically referred to as the electrical sort, happened to occur up to three-weeks after an initial vehicle New Car Assessment Program side pole crash test.
Hence, the concern.
This morning, GM held a conference call in order to quell some fears and reassure Volt owners that the car was safe. Further, a team of senior engineers was formed to evaluate available changes in preventing post-crash electrical fires.
GM also noted that no fires had occurred on roads, and NHTSA wasn't investigating any incidents outside its own tests.
Finally, for those still concerned of a potential vehicle fire, GM said it would issue a loaner vehicle free of charge until the Volt issues have been resolved.
On reports, GM shares dipped as much as 8 percent last week, but are up over 2 percent on Monday's session. GM has sold just over 5,000 Volts in the U.S. in 2011 through October, according to the most recent data. For comparison, about 11,200 Corvettes have been sold over the same period.
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