#greenfail: GM’s Volt: The ugly math of low sales, high costs

Russ Steele

Reuters) – 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. GM on Monday issued a statement disputing the estimates.

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.

The question is will anyone buy these high prices vehicles with limited performance? This is another attempt for the government of pick winners and losers. Let the market rule!  The Chevy Volt will some become a historical footnote in story of Climate Change Stupidity.

Advertisements

About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

4 Responses to #greenfail: GM’s Volt: The ugly math of low sales, high costs

  1. Arthur M. Day. says:

    How many miles does the Volt get per pound of coal?

  2. stevefrisch says:

    Just in case you question the source I will also connect to Forbes:

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

    “We don’t need no stinkin’ fact checking”……

  3. Arthur M. Day. says:

    I wonder why Mr. Lutz left out the $7500 tax break? I couldn’t afford to buy a Volt, my taxes don’t run anywhere near $7500/yr.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: