General Motors To Boost Chevrolet Volt Production By 50% To 45K Units In 2012 - Update

(RTTNews) - Automaker General Motors Co. announced Friday that it will increase U.S. production capacity of Chevrolet Volt by 50% in 2012, citing strong public interest in the Chevrolet Volt, the new 340-mile extended range electric vehicle.

The announcement came as U.S. President Barack Obama toured the Detroit-Hamtramck manufacturing facility, where the Volt is being produced now for sale later in the year.

"The Chevrolet Volt provides drivers with the latest technology, outstanding innovation, and something no other electric vehicle can provide - peace of mind. We are very proud to host the President of the United States at this plant, where the future of the American automobile industry is being built today by the men and women of General Motors," GM Chairman and CEO Edward Whitacre, Jr. said in a statement.

The Detroit-based carmaker said it will raise Volt production to 45,000 units from 30,000 in 2012. Early this month, GM said it plans to produce 10,000 Volts by the end of the 2011 calendar year and an additional 30,000 Volts during the 2012 calendar year.

Following the release of retail and lease pricing last week, Chevrolet dealers have began taking customer orders for deliveries of Volt in 2011, with the number of U.S. launch markets for the vehicle recently raised to seven from three. The production boost is seen as reaction to the strong customer response for the vehicle.

The first Volts will be available for retail sales in California, Washington, D.C., Austin, Texas and the New York City metropolitan area later this year. The vehicles are slated to arrive at dealerships in Michigan, New Jersey, Connecticut, as well as the balance of Texas and New York in the first quarter of 2011.

General Motors says the car has an extended driving range of 340 miles. The car can drive about the first 40 miles powered solely by electricity stored in its 16-kWh lithium-ion battery. When the battery runs out, a small gasoline engine connected to a generator will power the electric motor. The Volt can be plugged in to recharge the batteries.

Two weeks ago, GM said it will provide an eight-year, 100,000 mile battery warranty on Volt in an effort to boost the confidence of car buyers and ease concerns about battery volatility. The warranty is better than the typical five-year or 100,000-mile warranty the automaker typically offers for the powertrain on its conventional cars.

Hybrid car models currently on the market, including Toyota Motor Corp.'s (TM: News ) Prius and the Ford Motor Co.'s (F: News ) Escape Hybrid, have similar warranties on their battery packs.

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