Go Back   New Orleans Saints - blackandgold.com > Main > Everything Else
Shop Horizontal

GM losing $49G on each Volt sold, according to report

this is a discussion within the Everything Else Community Forum; General Motors is taking a $49,000 bath on each Chevy Volt it sells, according to a report. Citing data provided by consulting firm Munro & Associates, Reuters estimates that each one of the ballyhooed pug-in hybrid vehicles is currently costing ...

Like Tree1Likes
  • 1 Post By Mardigras9

Closed Thread
 
LinkBack Thread Tools Display Modes
Old 09-10-2012, 03:25 PM   #1
 
Join Date: Sep 2007
Location: The Woodlands
Posts: 17,141
Blog Entries: 27
GM losing $49G on each Volt sold, according to report

General Motors is taking a $49,000 bath on each Chevy Volt it sells, according to a report.
Citing data provided by consulting firm Munro & Associates, Reuters estimates that each one of the ballyhooed pug-in hybrid vehicles is currently costing upward of $89,000 to produce. With a sticker price of just less than $40,000, that makes for a sticker price disaster.
GM denied the estimate, calling it “grossly wrong, in part because the reporters allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program.”
But Sandy Munro told FoxNews.com that he stands behind the number, though he added that it was calculated based on industry standards without any specific inside information about the Volt program.
GM has never released exact numbers on development and production costs for the Volt, in part because many of the components used to make it are shared with other vehicles, including its platform and internal combustion engine. Nevertheless, even before it went into production the automaker admitted that the first generation of the car was not likely to turn a profit.
GM's response to the Reuters article further states that “every investment in technology that GM makes is designed to have a payoff for our customers, to meet future regulatory requirements and add to the bottom line. The Volt is no different, even if it takes longer to become profitable.”
Reuters reported that cheap Volt lease deals as low as $5,050 for two years make the car even less profitable. And in a sign that there may be a wider market problem, Nissan, Honda and Mitsubishi have seen sluggish hybrid and plug-in sales, although Toyota's Prius has been a success.
GM must increase sales volume in order to get back its estimated $1.2 billion investment in the Volt. But the $39,995 base price and the Volt's complex technology have made buyers wary.


Read more: GM losing $49G on each Volt sold, according to report | Fox News

Said Pope Benedict: "WOW ... that ring is bigger than mine!!!"

SmashMouth is offline  
Old 09-10-2012, 09:41 PM   #2
Moderator
 
Join Date: Sep 2007
Location: New Haven Ct
Posts: 18,124
Re: GM losing $49G on each Volt sold, according to report

The Volt's complex technology have made buyers wary. Keep it simple GM
QBREES9 is offline  
Old 09-10-2012, 10:10 PM   #3
Site Donor
 
Join Date: Nov 2004
Location: Gonzales, LA
Posts: 1,737
Re: GM losing $49G on each Volt sold, according to report

They're not bad looking rides, but I'm not dropping $40,000 on one. I'll stick with my old S-10.
mutineer10 is offline  
Old 09-11-2012, 01:05 PM   #4
Moderator
 
Join Date: Sep 2007
Location: New Haven Ct
Posts: 18,124
Re: GM losing $49G on each Volt sold, according to report

I feel the same way 40.000. Are you kidding me how muck is a Toyota Prius.
QBREES9 is offline  
Old 09-11-2012, 02:48 PM   #5
Site Donor 2014
 
Join Date: Dec 2010
Location: Land Mass between LA and AL
Posts: 3,384
Re: GM losing $49G on each Volt sold, according to report

Going green, in most areas today, is not cost effecient for the majority of consumers who already feel the economic pinch.
mutineer10 likes this.
Mardigras9 is offline  
Old 09-11-2012, 04:19 PM   #6
 
Join Date: Sep 2007
Location: The Woodlands
Posts: 17,141
Blog Entries: 27
Re: GM losing $49G on each Volt sold, according to report

Taxpayers to get charged as Pentagon buys up Chevy Volts

Read more: Taxpayers to get charged as Pentagon buys up Chevy Volts | Fox News
SmashMouth is offline  
Old 09-12-2012, 03:41 PM   #7
Site Donor
 
Join Date: Nov 2004
Location: Gonzales, LA
Posts: 1,737
Re: GM losing $49G on each Volt sold, according to report

Originally Posted by SmashMouth View Post
Taxpayers to get charged as Pentagon buys up Chevy Volts
Well, since y'all taxpayers are feeling generous, maybe I'll let y'all replace my old S-10 after all ...
mutineer10 is offline  
Old 09-12-2012, 10:08 PM   #8
Moderator
 
Join Date: Sep 2007
Location: New Haven Ct
Posts: 18,124
Re: GM losing $49G on each Volt sold, according to report

A friend of mine has and he loves it. He has money !
QBREES9 is offline  
Closed Thread

Thread Tools
Display Modes

Posting Rules


All times are GMT -5. The time now is 11:30 AM.


Copyright 1997 - 2013 - BlackandGold.com
no new posts