Steven Rattner, the man appointed by President Obama to oversee the auto industry bailout, claims that internal GM documents that were analyzed in the early days of the bailout pegged the cost of producing a Chevrolet Volt at $40,000 per car.
“At least in the early years, each Volt would cost around $40,000 to manufacture (development costs not included),” said Rattner. While GM declined to comment on the actual cost of the Volt’s production, Rattner said that he supported the move, since it meant a qualitative advantage for General Motors in the area of alternative fuel vehicles.
The Volt retails for $41,000 before government subsidies, which leaves little profit for GM, although the company arguably derives significant indirect benefits from marketing the vehicle.
[Source: New York Times]