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GM Is Losing Up To $49,000 Per Volt Sold
Reuters via Business Insider ^ | 09/10/2012

Posted on 09/10/2012 8:00:21 AM PDT by SeekAndFind

* GM losing as much as $49,000 per Volt sold

* Cheap leases likely only exacerbate the losses

* GM still years away from break even on the car

* New plug-in competitors soon from Ford, Honda Sept 10 (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.

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.

GM's basic problem is that "the Volt is over-engineered and over-priced," said Dennis Virag, president of the Michigan-based Automotive Consulting Group.

And in a sign that there may be a wider market problem, Nissan, Honda and Mitsubishi have been struggling to sell their electric and hybrid vehicles, though Toyota's Prius range has been in increasing demand.

GM's quandary is how to increase sales volume so that it can spread its estimated $1.2-billion investment in the Volt over more vehicles while reducing manufacturing and component costs - which will be difficult to bring down until sales increase.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: automakers; boondoggle; broke; chevyvolt; fire; generalmotors; gm; obamanomics; volt

1 posted on 09/10/2012 8:00:23 AM PDT by SeekAndFind
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To: SeekAndFind

So, each Volt represents a $49,000 taxpayer subsidy to some limousine liberal who wants to keep one sitting in his driveway so the neighbors can admire his Greenitude.

I must admit that, although I know some very rich people as well as ordinary folks, I’ve never actually SEEN a Chevy Volt. Probably most of these subsidies go right back to the Gubbermint, which is likely the chief buyer.


2 posted on 09/10/2012 8:04:53 AM PDT by Cicero (Marcus Tullius)
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To: SeekAndFind
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.

Yet according to DNC economics, this is a huge success.

Stupidity is our most expensive commodity.

3 posted on 09/10/2012 8:05:07 AM PDT by dartuser ("If you are ... what you were ... then you're not.")
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To: SeekAndFind

They’ll make it up on volume.


4 posted on 09/10/2012 8:09:31 AM PDT by Pearls Before Swine
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To: Cicero

I’ve never actually SEEN a Chevy Volt.

Saw my first one yesterday. Still on the lot.


5 posted on 09/10/2012 8:18:03 AM PDT by CrazyIvan (Obama's birth certificate was found stapled to Soros's receipt.)
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To: SeekAndFind

Numbers don’t seem to add up. Last report noted is was costing around $250,000 per car to make


6 posted on 09/10/2012 8:18:26 AM PDT by edcoil (It is not over until I win.)
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To: SeekAndFind
OSAMA BIN LADEN IS DEAD AND GM IS.....

on life support with the taxpayers paying the medical bill.

7 posted on 09/10/2012 8:19:26 AM PDT by Right Brother
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To: Pearls Before Swine

Thats ok, it’s free. Government is paying for it....


8 posted on 09/10/2012 8:20:30 AM PDT by EGPWS (Trust in God, question everyone else)
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To: Cicero

A few pretentious eco-liberals buy them,,,, yes. And many, if not most, of these little krapperkars are purchased by....... (guess?).... the government!

Our tax money at “work!”


9 posted on 09/10/2012 8:22:16 AM PDT by faithhopecharity
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To: Pearls Before Swine

Well, obviously, “this” is racist, trying to make the FBP look bad.

(”this” = economics)


10 posted on 09/10/2012 8:23:09 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working fors)
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To: SeekAndFind

Title is in error.

Should read Taxpayers lose instead of GM.


11 posted on 09/10/2012 8:23:25 AM PDT by bestintxas (Somewhere in Kenya, a Village is missing its Idiot, thankfully.)
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To: Cicero

Ask the Idiots who think electric cars are a good idea if they’ve thought about being in an Accident, in a car full of Lead Acid batteries.


12 posted on 09/10/2012 8:25:05 AM PDT by To-Whose-Benefit? (It is Error alone which needs the support of Government. The Truth can stand by itself.)
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To: To-Whose-Benefit?

... and gasoline.


13 posted on 09/10/2012 8:33:59 AM PDT by ~Peter
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To: SeekAndFind

14 posted on 09/10/2012 8:34:28 AM PDT by dblshot (Insanity: electing the same people over and over and expecting different results.)
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To: CrazyIvan

I saw one in Sedonna, AZ trying to turn a left turn into a motel. There was a slight incline and the car stopped four times to “reboot!”

The passengers were a family of four with two kids in the back seat, trying to hide their eyes.

Good thing there was not much traffic.


15 posted on 09/10/2012 8:40:13 AM PDT by jayrunner
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To: SeekAndFind

Be sure to order Option Package 47 C. This replaces the interior with a grill and you get grilling utensils with the GM logo on them.


16 posted on 09/10/2012 8:52:35 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: SeekAndFind

How many were bought by the Government to go to USG motor pools? I know of one that went to an Embassy motor pool but guess what? No charging station went with it so it sits and goes unused. Even if a station were supplied, it would take GSO about a year to get it installed. What a waste.


17 posted on 09/10/2012 8:59:07 AM PDT by mikey_hates_everything
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To: SeekAndFind

Government working to push and subsidize electric cars while simultaniously working to shut down electric power generation.

Makes perfect sense.


18 posted on 09/10/2012 9:03:32 AM PDT by headstamp 2 (What would Scooby do?)
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To: Cicero

I live in a fairly large metropolitan area, Norfolk/Virginia Beach, VA. I’ve only seen one Volt in the months they’ve been available.

And the one I saw was labelled as a dealership’s “loaner” vehicle.


19 posted on 09/10/2012 9:15:13 AM PDT by fredhead (It's my Herbie year...check out the number on the side of the famous VW.)
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To: Cicero

I saw my first Volt two weekends ago. It had a nice Obama/Biden sticker on the back.


20 posted on 09/10/2012 9:32:11 AM PDT by woodbutcher1963
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To: SeekAndFind

GM screwed me on the Vega.

If I was not helping pay for the Volt I would just think it was Karma.


21 posted on 09/10/2012 9:34:03 AM PDT by hadaclueonce (you are paying 12% more for fuel because of Ethanol. Smile big Corn Lobby,)
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To: SeekAndFind

GM’s quandary is how to increase sales.

Obama ti issue an EO soon,buy it or else.


22 posted on 09/10/2012 10:34:59 AM PDT by Vaduz
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To: SeekAndFind

Does this mean that by NOT buying a Volt, I saved GM $49,000?

Maybe GM should come up with a rebate or incentive program to encourage people to not buy a Volt? Imagine the savings!

If enough people didn’t buy Volts, they might actually make a profit.


23 posted on 09/10/2012 12:20:56 PM PDT by Brookhaven (The Democratic Party has become the Beclowning Party)
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To: SeekAndFind

Hell of a business plan! The CEO will still earn millions of dollars in bonus.


24 posted on 09/10/2012 12:31:49 PM PDT by New Jersey Realist (America: home of the free because of the brave)
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