GM Denies It's Losing $49,000 on Every Volt Sold
In a recent report detailing the failings of General Motors, it was reported that the automaker was allegedly losing $49,000 on every Chevrolet Volt sold. GM has now issued a statement refuting those claims.
Originally reported by Reuters, GM released a rebuttal to the claim simply stating that the “estimate of the current loss per unit for each Volt is grossly wrong part because the reporters allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program, which is how business operates.”
Of course, GM went on to explain how all the costs into the Volt’s battery cells, packs, controls, electric motors, and more also benefit multiple current and future products. Therefore, its cost can’t be single-handedly attributed to the Volt model, but rather will lead to more profits for future models.
As expected, GM stands by its product and the process that it took to release the Volt, even if it takes them longer to become profitable with it.
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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I believe in the VOLT car concept.. It gives me the complete feeling of freedom that a regular electric car does not. It's nice to know that if I end driving hundreds of miles for whatever reason, I won't have to worry that I'll run out of juice and get stranded. Right on VOLT!
I was driving my 1983 Mercedes 300TD diesel station wagon to the store the other day and concluded it was the best $2300 I ever spent back in 1992. Last year, I bought 4 simple oil/filter changes, 2 simple wiper blades from WalMart and two used load leveler hydraulic cylinders for $200 as mine leaked oil at approximately 600K miles. My steering wheel needs replacing as the soft rubber has finger grooves worn into it. Back to the junkyard for more parts. No thanks on tech. I won't live long enough to wear out its wonderful, real DIESEL that has recycled thousands of gallons of used cooking oil from local Chinese restaurants mixed 50:1 with paint thinner....