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Consumers Still Don't Want a Chevy Volt

GM is practically giving away the Chevy Volt, but that has not been enough to keep it in production.

For the second time this year, the bailed out automaker will suspend production of the electric car so popular with Capitol Hill. The Michigan assembly plant that builds the car will close for four weeks between September and October.

The announcement comes after a record-setting August for the Volt. GM sold 2,500 Volts in August, a 700 percent increase from 2011. The new sales were driven by the company’s dropping the monthly price of the nearly $40,000 car to $169 per month—on par with the monthly cost of the $15,000 Kia Forte.

Government has also helped drive sales by providing car buyers with a $7,500 tax write-off for purchasing the Volt. Meanwhile states like California now allow Volts into carpool lanes regardless of how many passengers a driver is carrying. Despite these perks, GM admits that consumers are still avoiding the car:

GM confirmed the plant idling, saying it will continue to "match supply with demand" for both the Volt and the Chevrolet Malibu sedan that is also made at the plant. The automaker declined to specify how long the plant will be closed.

Published under: Auto Industry