General Motors losing $49G on each Volt sold

[Hum]

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.?

full story

[Nerd Rage]

Bailout money hard at work :(

[nominak]

They're not losing $49,000 on each volt.

http://jalopnik.com/5942352/gm-isnt-really-loosing-all-that-cash-with-each-volt

[hamslammer]

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.?

full story

The sad part is that the American taxpayer is paying for this disaster caused by the Obama regime. I'll be elated to see him go this November.

[jamieakers]

The sad part is that the American taxpayer is paying for this disaster caused by the Obama regime. I'll be elated to see him go this November.

With people like you voting it's no wonder the USA is in the trouble that they are.

[Beyond Godlike]

Actually, unlike the Bush debt, OBama didn't give money to these companies, he gave them loans, which are almost paid back. The government is MAKING money off the loans. You fail.

Hahha, and theyll say "according to the liberal media only"..cause we know Fox denies facts and gets away with it.

[ahhell]

They're not losing $49,000 on each volt.

http://jalopnik.com/...-with-each-volt

LOL. What ****ty site. They even have a typo in the URL. I wouldn't believe anything that those jackasses say.

[rhianntp]

of course they can afford to make products they lose money on..you and I paid for it....this fraud is going down in a landslide.. MOST Americans understand our ecomomic system better than those in power right now...

[streetw0lf]

Remember, Bush gave Free grants to the banks with no strings attached, 800 billion or so. They're the folks that then used part of it to pay outrageous bonuses for running the business in the ground. They could do anything they want with it and never give a penny back.

The auto bailout as mentioned was a loan that is almost paid back with interest. Ford was the only major car manufacturer that didn't accept any money from the Feds.

I realize Republicans and Obama haters don't believe in 'fact checking' but here you have the facts.

[threetonesun]

Maths! Never trust a journalist with them. :laugh:

[Big b0b]

lots of obama lovers in here I see...

[Growled Member]

I can't believe GM is losing that much money per car. Not unless they are getting a huge kickback from the government.

[moloko]

I hope this is not true. I mean I have not seen many on the road either. This is sad.

[+Gary7 Subscriber²]

Why The Government needs to stay out of the auto business.

[ahhell]

Nice try pushing your agenda.

"It's the latest in a series of publicity challenges for the Volt, which conservatives has criticized as the Obama-mobile, despite the fact that it was in the works years before Barack Obama considered running for the White House. The car was first introduced as a concept vehicle in January 2007, two years before Obama took office, and was first sold in fall 2010.

Read more: http://www.canada.com/says+claims+loss+Volt+wrong/7237726/story.html#ixzz26NRv9goQ"

[nominak]

Nice try pushing your agenda.

"It's the latest in a series of publicity challenges for the Volt, which conservatives has criticized as the Obama-mobile, despite the fact that it was in the works years before Barack Obama considered running for the White House. The car was first introduced as a concept vehicle in January 2007, two years before Obama took office, and was first sold in fall 2010.

Read more: http://www.canada.co...l#ixzz26NRv9goQ"

http://jalopnik.com/...-with-each-volt

To add to your post :p Even though theres a typo in their link XD

[ILikeTobacco]

http://jalopnik.com/...-with-each-volt

To add to your post :p Even though theres a typo in their link XD

The big picture to take here is that only 21,500 so far. Which each car sold, the number ($40k) goes down. That is normal with product. It is a bit troubling, politics aside, that business analysts over at GM grossly overestimated the demand for the car. A smart company(and one that survives) is a company that knows a product will continue to cost money. Moving to a completely electric car so fast was a flawed business plan I think. They should have followed the hybrid model and did R&D in an environment that let a number of car models absorb the up to $1.2 billion. GM took a gamble and lost out. That is how our markets work though. As a tax payer, I think it was a mistake for the government to invest in this company at all. Car companies fail all the time. Way to much tax payer money was put on state on a bad business plan from what its looking like. I couldn't care less who's fault it is. I want to know what they are going to do is fix it.

Cut the product line. You have the R&D for a pure electric car. Put that research into a new product that will actually sell.

[Melfster]

Lets not forget the Prius was big money loser until recently.

[+Gary7 Subscriber²]

I do not have an agenda. Facts are Facts. GM has stopped all production on the Volt for some reason :/

[devHead]

The woman in the video is an idiot. She thinks the Volt was an idea from Barack Obama? She needs to be picked up as an analyst / commentator for FoxNews. That's where she belongs.

[+Gary7 Subscriber²]

The woman in the video is an idiot. She thinks the Volt was an idea from Barack Obama? She needs to be picked up as an analyst / commentator for FoxNews. That's where she belongs.

Obama does not have the ability to design a soap box derby car. Is she an idiot? I do not know the women.

[threetonesun]

The big picture to take here is that only 21,500 so far. Which each car sold, the number ($40k) goes down. That is normal with product. It is a bit troubling, politics aside, that business analysts over at GM grossly overestimated the demand for the car. A smart company(and one that survives) is a company that knows a product will continue to cost money. Moving to a completely electric car so fast was a flawed business plan I think. They should have followed the hybrid model and did R&D in an environment that let a number of car models absorb the up to $1.2 billion. GM took a gamble and lost out. That is how our markets work though. As a tax payer, I think it was a mistake for the government to invest in this company at all. Car companies fail all the time. Way to much tax payer money was put on state on a bad business plan from what its looking like. I couldn't care less who's fault it is. I want to know what they are going to do is fix it.

Cut the product line. You have the R&D for a pure electric car. Put that research into a new product that will actually sell.

The Volt is a hybrid.

More than anything, their advertising sucks. I think everyone knows what the deal is with the Prius, but I've seen relatively few Volts anywhere, and heard even less.

[+Gary7 Subscriber²]

The Volt is a hybrid.

More than anything, their advertising sucks. I think everyone knows what the deal is with the Prius, but I've seen relatively few Volts anywhere, and heard even less.

The Volt is NOT a hybrid. If you want to call it a Hybrid as it has about a 2-3 gallon supply of gas so be it.

[threetonesun]

The Volt is NOT a hybrid.

The Volt is a hybrid. :laugh:

The fact that no one seems to know this might be part of GM's problem.

[ILikeTobacco]

The Volt is NOT a hybrid.

Yea that's what I thought. Could have swore it was the full electric car. Just read up on it. The combustion engine it has is only used if you fail to charge the car. Otherwise, it is perfectly capable of running electric only.

"Instead General Motors describes the Volt as an electric vehicle equipped with a "range extending" gasoline powered internal combustion engine (ICE)"

Basically, if you have to use any gas.... you are holding it wrong...