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

SmashMouth · 09-10-2012, 04:25 PM

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

QBREES9 · 09-10-2012, 10:41 PM

The Volt's complex technology have made buyers wary. Keep it simple GM

mutineer10 · 09-10-2012, 11:10 PM

They're not bad looking rides, but I'm not dropping $40,000 on one. I'll stick with my old S-10.

QBREES9 · 09-11-2012, 02:05 PM

I feel the same way 40.000. Are you kidding me how muck is a Toyota Prius.

Mardigras9 · 09-11-2012, 03:48 PM

Going green, in most areas today, is not cost effecient for the majority of consumers who already feel the economic pinch.

SmashMouth · 09-11-2012, 05:19 PM

Taxpayers to get charged as Pentagon buys up Chevy Volts

Read more: Taxpayers to get charged as Pentagon buys up Chevy Volts | Fox News

mutineer10 · 09-12-2012, 04:41 PM

Originally Posted by SmashMouth

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 ...

QBREES9 · 09-12-2012, 11:08 PM

A friend of mine has and he loves it. He has money !

09-10-2012, 04:25 PM	#1
SmashMouth I donated, did you? Join Date: Sep 2007 Location: Mandeville, LA Posts: 38,127 Blog Entries: 29	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

09-10-2012, 10:41 PM	#2
QBREES9 Moderator Join Date: Sep 2007 Location: New Haven Ct Posts: 23,985	Re: GM losing $49G on each Volt sold, according to report The Volt's complex technology have made buyers wary. Keep it simple GM

09-10-2012, 11:10 PM	#3
mutineer10 Site Donor Join Date: Nov 2004 Location: Baton Rouge, LA Posts: 1,739	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.

09-11-2012, 02:05 PM	#4
QBREES9 Moderator Join Date: Sep 2007 Location: New Haven Ct Posts: 23,985	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.

09-11-2012, 03:48 PM	#5
Mardigras9 Site Donor 2015 Join Date: Dec 2010 Location: Land Mass between LA and AL Posts: 4,375	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.

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09-11-2012, 05:19 PM	#6
SmashMouth I donated, did you? Join Date: Sep 2007 Location: Mandeville, LA Posts: 38,127 Blog Entries: 29	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

09-12-2012, 04:41 PM	#7
mutineer10 Site Donor Join Date: Nov 2004 Location: Baton Rouge, LA Posts: 1,739	Re: GM losing $49G on each Volt sold, according to report Originally Posted by SmashMouth 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 ...

09-12-2012, 11:08 PM	#8
QBREES9 Moderator Join Date: Sep 2007 Location: New Haven Ct Posts: 23,985	Re: GM losing $49G on each Volt sold, according to report A friend of mine has and he loves it. He has money !