Pipe Dream: Chevrolet Loses $49,000 For Each Volt Sold

Pipe Dream: Chevrolet Loses $49,000 For Each Volt Sold
General Motors sold a record number of Chevrolet Volt sedans in August — but that probably isn't a good thing for the automaker's bottom line.

Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.

Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.

 


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chewychewy - 9/10/2012 1:56:37 PM
+3 Boost
I don't understand why everyone is picking on the Volt. As the article says it costs 20-32,000 to actually build. The Cruze costs 12-15,000 but starts at only 17,925. The total money spent on the Volt will also be shared with the ELR and possibly other models down the line.

Nissan (and practically every other brand) has probably also spent billions on electric technology which so far has only resulted in about the same amount of LEAFs sold over the past decade or two. Using the same math Nissan is losing even more on each LEAF and I bet Tesla loses millions on each car it sells.




chewychewy - 9/10/2012 1:59:16 PM
+1 Boost
This quote is what I was talking about:

"GM's investment in the Volt has so far been a fraction of the $5 billion that Nissan said it is spending to develop and tool global production of the Leaf and its associated technologies and the reported $10 billion or more that Toyota has plowed into the Prius and various derivatives over the past decade."

So where is the article that says that Nissan is losing 250,000 on each Volt?


chewychewy - 9/10/2012 2:16:42 PM
+2 Boost
Nissan is using a 1.6 billion dollar US gov loan for the Tennessee LEAF facility.


wcbrownwcbrown - 9/10/2012 2:51:57 PM
+2 Boost
I tell you, there is some real ignorance on this blog. More than GM received government funds to assist is keeping business going during the economic downturn in the auto industry. However, it seems GM and particularly the Volt, continually catch heat. Who can confirm that this ridiculous claim is even fact? It is so unfortunate that the Volt, for all the advancement in electric/hybrid tech it brings, continues to be overshadowed by negativity and false statements.


Agent009Agent009 - 9/10/2012 9:03:40 PM
+1 Boost
They are catching heat for producing a $50K economy car. If it was a $100K Corvette it would be different.


vdivvdiv - 9/10/2012 11:13:23 PM
+1 Boost
You, my friend, clearly have no idea what an economy car is if you think the Volt is one (but the Vette isn't).


wcbrownwcbrown - 9/10/2012 2:51:58 PM
+2 Boost
I tell you, there is some real ignorance on this blog. More than GM received government funds to assist is keeping business going during the economic downturn in the auto industry. However, it seems GM and particularly the Volt, continually catch heat. Who can confirm that this ridiculous claim is even fact? It is so unfortunate that the Volt, for all the advancement in electric/hybrid tech it brings, continues to be overshadowed by negativity and false statements.


vdivvdiv - 9/10/2012 11:16:17 PM
+2 Boost
I'll let Bob Lutz answer to the smear piece:

http://www.forbes.com/sites/boblutz/2012/09/10/the-real-story-on-gms-volt-costs/
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