AutoGuide News Blog
The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
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]
Steve Rattner, who oversaw President Obama’s auto industry bailout, told Bloomberg News that GM’s Initial Public Offering share price was undervalued.
“There is definitely a greater level of confidence in the ability of the carmakers to perform,” Rattner said at an Automotive Press Association event in Detroit. “That’s because of the profit numbers.”
According to Bloomberg sources, GM is expecting to be able to sell shares for over $30 each, with Rattner claiming that $35 to $40 a share is expected.
Rattner also criticised GM’s managment structure, stating that the roles of CEO and President must be separated, as GM’s rotation of four CEOs in 18 months reflected poorly on the company.