Despite Possible Fire Hazard, GM Can’t Fill Demand for Volt

GM’s (NYSE:GM) battery-powered Chevrolet Volt cars saw a 34% jump in sales compared to November, selling 1529 units, even though it faces government investigation into whether the car’s battery is a serious fire hazard in the event of a crash.

GM has so far been unable to fill demand for the car, having to allocate production to dealers which showed the most demand. In fact last month was a sort of landmark for GM, when it at least managed to fill all corporate and fleet orders, normally a third of all Volt sales.

In such a scenario, GM is anxious to resolve apprehensions of federal regulators about the battery’s safety, and avoid any repercussions of the investigation on sales of this high profile car.

“There has been uncertainty in the market, but we believe that uncertainty will go away,” said Alan Batey, vice president of sales and service for Chevrolet. Supply shortages have plagued production of the car.

Apparently the investigation was triggered by crash tests in which three lithium–ion batteries caught fire last November. According to GM, the problem is due to a coolant leak which is being rectified.