Chevy Volt Battle of the Brands

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* In 2011, there were 268, 752 hybrid or electric cars sold in the United Stated . The Chevy Volt in 2011 had a market share in the hybrid/electric car market of 2.85 %, just below the market share of its main competitor the Nissan Leaf of 3.59%. The Toyota Prius dominates the hybrid/electric market with a market share of 50.77%. The Lexus 250h, which is also one of the Chevy’s main competitors, has the lowest market share of 0.01%. A visual representation of the market shares can be found in Appendix I. To determine if the Chevrolet Volt’s pre-tax profits are average, above or below average its relative market share should be calculated. The market share of the Leaf, Prius and Lexus are used to calculate the relative market share of the Volt. Generally, if the relative market share of company is 50, it means that its pre-tax profits are average. However, The Chevy volts relative market share is only 5.24 %, therefore its pre-tax profit compared to its 3 main competitors is well below average. The calculations of the Volt’s pre-tax profits are illustrated in Appendix II. * The sales of the Chevrolet Volt since it was first launched in 2010 are very volatile and they show the struggles that the Volt went through in its first year of being on the market. For example from January to February, sales decreased by 12 percent but then in March they suddenly increased by 116%. Also, in June there was a drastic decrease in sales of 78% due to the Volt catching fire during a test drive. This problem has been addressed however during June and July consumers were skeptical about purchasing a Volt. Appendix III shows the sales of the Chevrolet Volt since 2010. * Appendix 1V shows the sales in units of the Chevrolet Volt and the Nissan leaf. At the beginning of 2011, Nissan and Chevrolet announced that their goal was to sell 10, 000 cars by the end of the year. However

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