Bob Lutz Claims There Is No Way GM Is Losing $49,000 Per Volt Sold

I was surprised to read Ben Klayman’s piece on alleged astronomical per-unit losses on the Chevrolet “Volt.” Ben is usually a solid professional who checks his facts.

The statement that GM “loses” over $40K per Volt is preposterous. What the “analyst” in whom poor Ben Klayman placed his faith has done is to divide the total development cost and plant investment by the number of Volts produced thus  far. That’s like saying that a real estate company that puts up a $10 million building and has rental income of one million the first year is “losing” 9 million dollars, or several hundred thousand per renter.

 

wcbrown - 9/11/2012 4:46:53 PM

+2 Boost

Anyone with 1/2 a brain knows that the number quoted is ridiculous. Maybe one day, the true relevance of the Volt and what it pioneered will be realized!

HughJass - 9/12/2012 12:49:05 AM

+2 Boost

The pessimist would say its more like $79,000 per car.

vogeygolf - 9/12/2012 7:01:01 PM

+1 Boost

Bob Lutz is right. Love it or hate The Volt, love GM or hate GM, the claimed loss is rediculous. Journalists should not try to practice cost accounting. Plants and technology investments need to be amortized over the effective life of the plant and the technology.

globaltrader - 9/13/2012 4:33:39 PM

+1 Boost

Between the haters and the dolts, that could stand for short on mental volts, it is hard to produce such a radically different product of serious value to a positve response.
Volt sales are growing, after the planned shut down, they will go to a third shift. Lutz is the Dude.