GM's Volt: The Ugly Math Of Low Sales, High Costs

General Motors Co 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.

And while the loss per vehicle will shrink as more are built and sold, GM is still years away from making money on the Volt, which will soon face new competitors from Ford, Honda and others.

GM's basic problem is that "the Volt is over-engineered and over-priced," said Dennis Virag, president of the Michigan-based Automotive Consulting Group.


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g2ok - 9/10/2012 5:12:06 PM

+2 Boost

They just need to keep working on it and get out a new improved model, Volt II.

Yonder7 - 9/10/2012 6:02:36 PM

+1 Boost

Honestly I do not see more Volts in the future...sadly..

vdiv - 9/10/2012 11:29:52 PM

0 Boost

Honestly, you may need new glasses.

ThierryHenry14 - 9/11/2012 3:23:49 PM

+1 Boost

Agree with Yonder...

In the Westchester/Fairfield County area, I just do not see as many Volts as I thought I would have seen... Like you said, I just feel that they need to dramatically change the car or make a bigger statement, revamp its marketing campaign to draw more attention to the benefits...

chewy - 9/10/2012 7:29:21 PM

+1 Boost

After getting some more info I have to change up my stance on the Volt a little. It appears that GM ordered up parts and tooling with suppliers for a lot more Volts than was reasonable and now is having some difficulties there. So in that regard GM did make mistakes. But yet on an another hand many say that tooling can be modified and if they have excess Volt tooling that it can be eventually go to a different model if necessary at reasonable costs.

vdiv - 9/10/2012 11:35:57 PM

+2 Boost

The new model is called Cadillac ELR and it is coming. In the mean time people are waking up to the whole electric plugin mystery and surprisingly the Volt has a role in it. The more bullshit articles like this one pop-up the more the case is made for the EV and the Volt as the path to it.