General Motors Co. has halted production of its Chevrolet Volt hybrid electric car after missed sales goals in 2011 and the early months of 2012, according to a report.
Production will be halted from March 19 to April 23, and 1,300 employees at its Detroit-Hamtramck factory will be temporarily laid off, The Wall Street Journal said.
GM missed its 2011 sales goal to sell 10,000 Volts by approximately 2,300 cars. Volt sales increased in February 2012 to over 1,000 from just 623 in January. However, supply of the vehicles seems to still outstrip demand.
A goal of selling 45,000 Volts in the U.S. had been set by GM for this year, but GM will be monitoring demand for the vehicle to prevent production from outstripping demand for the car.
The Volt has faced substantial media scrutiny following a report by the National Highway Traffic Safety Administration regarding a possible fire hazard with the car battery. The Volt was subsequently cleared as posing any hazard, but the negative publicity may have affected sales.