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GM Now Losing $59,000 on Every Chevy Volt Sold
Posted By Daniel Greenfield On August 7, 2013 @ 9:54 am In The Point | 32 Comments
Or to put it another way, you can buy a 2013 BMW M3 with the money lost on each Chevy Volt sold.
General Motors Co. is slashing the price of its plug-in hybrid Chevrolet Volt by $5,000, making it the latest automaker to lower prices of electric vehicles in the face of lagging consumer demand.
The Detroit-based automaker said it will cut the base price 12.5 percent, from $39,995 to $34,995.
Not a big deal, right? We all know the margin must be big enough to absorb a price cut. Not so much.
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. GM on Monday issued a statement disputing the estimates.
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.
So GM was already losing more than half the purchase price on each Volt. Now the hole has gotten even deeper. And if there’s another Volt price cut, then the car will be sold at 1/3 of what it costs to make.
Just wait till Government Motors brings us the Yugo. Socialism automobile manufacturing at its finest.
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