Monday, August 20, 2012

Because of Politics, Chevy Loses On Every Volt It Sells

Before the General Motors (GM) bailout, it was estimated that the company was losing $1800 on every car it sold.  Well, it seems old habits are hard to break.  Now, it appears that GM is losing thousands on every Chevy Volt it sells.

Back in November 2010, Obama's Car-Czar, Steven Rattner, wrote this in his book titled Overhaul:
"At least in the early years, each Volt would cost around $40,000 to manufacture (development costs not included).” 

With that in mind, it was a little surprising that the initial Volt MSRP was set at $41,000.  Normally, a car that costs $40,000 would have a price tag set at the mid-to-high $40's.   Even more surprising was the fact that GM, several months later, lowered the price below the psychologically-impacting $40,000 level. 

While the dealers are able to make a profit on each Volt they sell,  GM, itself, is selling it at about a $4,000 loss.  That's just not a good business decision. Instead, it's a political decision. This is what happens when a liberal politician, like Obama, gets his hands on private enterprise.  And, I don't care if the enterprise is Solyndra or health care system.


Report: Each Volt Costs $40,000 To Build:

GM Confirms, Yes, We're Losing Money on Every Volt We Build:

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