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Insight: GM's Volt - The ugly math of low sales, high costs

reuters -- Reuters) - General Motors Co sold a record number of Chevrolet Volt sedans in August — but that probably isn't a good thing for the automaker's bottom line.

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Submitted Sep 10, 2012 By: jbob357
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Insight: GM's Volt - The ugly math of low sales, high costs Back to Topics
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E-Squirrel
Champion Author Orange County

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Message Posted: Sep 27, 2012 2:10:04 AM

As a high sales volume selling vehicle for a number of years now, Toyota's Prius is often compared with the Chevrolet Volt. Although both vehicles are actually hybrids, GM prefers to describe their best hybrid vehicle effort to date as an "electric car".

Toyota, with more engineering and sales experience in this area believes that gas-electric hybrids are the future, and battery electric cars are not.

Takeshi Uchiyamada, Toyota’s vice chairman and the engineer who oversees vehicle development, told reporters on Monday:

"The current capabilities of electric vehicles do not meet society’s needs, whether it may be the distance the cars can run, or the costs, or how it takes a long time to charge."
honda0105
Champion Author Tallahassee

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Message Posted: Sep 12, 2012 11:01:11 PM

Gnus: hard to turn faux noise off..
Gnusman53
Champion Author San Diego

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Message Posted: Sep 12, 2012 7:53:14 PM

And sick.... take two facts... turn off faux and see us in the morning....
Gnusman53
Champion Author San Diego

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Message Posted: Sep 12, 2012 7:51:56 PM

Boy....ya got to love all the fuzzy math wizards posting here....

According to them, we should have no cars at all..... because they haven't paid for their construction BEFORE they are sold....
Gnusman53
Champion Author San Diego

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Message Posted: Sep 12, 2012 7:49:36 PM

Well said Benno
honda0105
Champion Author Tallahassee

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Message Posted: Sep 12, 2012 6:53:33 AM

esquirrel: funny!
E-Squirrel
Champion Author Orange County

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Message Posted: Sep 11, 2012 4:32:05 PM

Looking on the "positive side", Jmac2008 assures us:

"the Volt is the best hybrid on the market right now."

It certainly is not the best selling hybrid, but then it would be hard to beat out the Fisker Karma for the dubious distinction of being the worst.

[Edited by: E-Squirrel at 9/11/2012 5:33:02 PM EST]
sparky808
Champion Author Honolulu

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Message Posted: Sep 11, 2012 2:33:27 PM

Thank you for posting.
honda0105
Champion Author Tallahassee

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Message Posted: Sep 11, 2012 2:23:16 PM

fuzzy math?
blupupher
Champion Author Houston

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Message Posted: Sep 11, 2012 8:09:49 AM

Thats some funny math.
remay
Champion Author Houston

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Message Posted: Sep 11, 2012 8:09:45 AM

What's ugly about it? There is little infrastructure, there is LIMITED range, etc... the math all adds up to me...
BennoBlue
Champion Author Virginia

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Message Posted: Sep 11, 2012 12:23:51 AM

This is a silly misrepresentation. It's essentially saying that if you spend $1 million in research & development, then sell your cars for $40K, the first car off the line is losing $960,000, the 2nd car is losing $920,000, etc. No one who actually understands business economics looks at it that way.
MrPony
All-Star Author North Carolina

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Message Posted: Sep 10, 2012 11:45:10 PM

Come on guys...Pres. Osama said it was good and he wouldn't lie, would he?
matthwbar
Champion Author Toledo

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Message Posted: Sep 10, 2012 11:41:10 PM

It's a government boondoggle...
Gnusman53
Champion Author San Diego

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Message Posted: Sep 10, 2012 11:21:30 PM

No brainer.

Perfect description of the story and most of the posts lately....
sickhp
Champion Author San Antonio

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Message Posted: Sep 10, 2012 11:20:08 PM

Us taxpayers are taking it in the shorts with Obama demanding the Volt, we are paying for this as we are with his other green failures, wake up America Nov 6 change the leader he has failed.
52MPG
Champion Author Dayton

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Message Posted: Sep 10, 2012 11:18:21 PM

Government Motors logic at work.
Quick68
Champion Author Columbus

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Message Posted: Sep 10, 2012 11:10:45 PM

I don't believe GM or any other man on earth when it comes to money.
menagerie1013
Champion Author San Diego

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Message Posted: Sep 10, 2012 11:07:36 PM

Crazy
cssco
Champion Author Virginia

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Message Posted: Sep 10, 2012 11:04:59 PM

It is an understatement to say the business plan for this trick was flawed but, no one in the organization seems to be acknowledging it. Maybe it is a bonus killer to do that.
rahcat
Champion Author Grand Rapids

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Message Posted: Sep 10, 2012 11:04:52 PM

Only losing $49,000 on each car. Thanks Obama.
ManOfLeisureII
Champion Author Philadelphia

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Message Posted: Sep 10, 2012 11:03:53 PM

Can you say "another bailout"?
BlewettCA
Veteran Author California

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Message Posted: Sep 10, 2012 11:01:23 PM

no bama
walkingtall
Champion Author Toronto

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Message Posted: Sep 10, 2012 10:58:36 PM

A sale,is a sale.
obimerrill
Champion Author Cincinnati

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Message Posted: Sep 10, 2012 10:58:32 PM

I just don't see it
SUPPER
Champion Author San Bernardino

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Message Posted: Sep 10, 2012 10:57:34 PM

No bama
joeschmo12
Champion Author New York

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Message Posted: Sep 10, 2012 10:57:03 PM

Hehe
Mustache_33
All-Star Author Toronto

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Message Posted: Sep 10, 2012 10:54:17 PM

a sale is a sale. it's a good sell :)
bonzoonfmb
Champion Author Florida

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Message Posted: Sep 10, 2012 10:53:13 PM

I will have to look into the deal mentioned where you can lease one for 2 years for $5000 - that would be the only way I would consider a GM Volt.

Electrifying, MG Sputnick, electrifying.
RickF350
Champion Author Washington

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Message Posted: Sep 10, 2012 10:53:13 PM

When is GM going to pay us back?
69Bonne
Champion Author Gary

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Message Posted: Sep 10, 2012 10:52:49 PM

Great comments by pgerassi. Engineers today don't think about costs, just make a fancy looking car with lots of features that probably aren't necessary. When the EV is under $25K, then more people will buy it. Hybrids are more likely to succeed until battery usuage is in the 200-300 mile range.
EmperorsFinest
Champion Author Chicago

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Message Posted: Sep 10, 2012 10:52:17 PM

Tubular
Jmac2008
Champion Author Missouri

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Message Posted: Sep 10, 2012 10:52:10 PM

the Volt is the best hybrid on the market right now.
jrsva
Champion Author Virginia

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Message Posted: Sep 10, 2012 10:50:46 PM


I don’t see how the Volt stands a chance. It has too many fancy features, which push the price out of reason. It seems like it was obsolete in many ways when it first came out. EVs are not yet ready for prime time and the Volt is a prime example.
mrbee
Champion Author Little Rock

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Message Posted: Sep 10, 2012 10:48:47 PM

Keep them.
hauler43
Champion Author Oakland

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Message Posted: Sep 10, 2012 10:47:58 PM

I seen a few
SHEP20715
Champion Author Maryland

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Message Posted: Sep 10, 2012 10:47:54 PM

neither one
Piggy1959
Champion Author Fort Worth

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Message Posted: Sep 10, 2012 10:47:21 PM

I will choose Toyota.
abcdMA
Champion Author Worcester

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Message Posted: Sep 10, 2012 10:43:12 PM

the car was a prototype never planned to go to production
drobbbb
Champion Author Maryland

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Message Posted: Sep 10, 2012 10:42:19 PM

ok
midnightsdc
Champion Author Ontario

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Message Posted: Sep 10, 2012 10:39:23 PM

Great car...just lower the price
Digger52
Champion Author Chicago

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Message Posted: Sep 10, 2012 10:38:51 PM

Not practical or affordable. ..
TXryder
Champion Author Texas

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Message Posted: Sep 10, 2012 10:34:49 PM

Here yesterday, lingers like a bad odor today, gone tomorrow
Blue48
Champion Author Illinois

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Message Posted: Sep 10, 2012 10:32:38 PM

NOT GOOD!
RevDrCBJ
Veteran Author Ann Arbor

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Message Posted: Sep 10, 2012 10:31:29 PM

$49,000.00 loss on building care> that's somebody's salaries
Titan_62
Champion Author North Carolina

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Message Posted: Sep 10, 2012 10:25:28 PM

...it's not just the cost factor; but where to charge it-- and how far you can travel on a single charge!
gasaholicNC
Champion Author North Carolina

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Message Posted: Sep 10, 2012 10:25:25 PM

Another GM Flop....
us4usa
Champion Author Missouri

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Message Posted: Sep 10, 2012 10:25:02 PM

Toyota runs on REGULAR gas the Volt runs on PREMIUM gas??? We will NEVER buy a car that rans only on PREM like REM gas, because thats what you get at the pump a REM job with PREM gas...
Buddy2264
Champion Author Tampa

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Message Posted: Sep 10, 2012 10:24:55 PM

OK around town and if you can plug in at work and at home. For now the hybrid that uses the engine to recharge the batter, with a plug in option would be the best move until the technology catches up with the charging stations.
FuelOilOH
Champion Author Cleveland

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Message Posted: Sep 10, 2012 10:24:32 PM

I'm not partial to GM Vehicles but if I could drive one for $199 a month for two years I think my transportation cost would go way down for those two years. And then to just walk away from it when the lease is up and let someone else worry about the battery pack is mighty tempting.
goodbuy
Champion Author Michigan

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Message Posted: Sep 10, 2012 10:23:23 PM

Make it go 400-500 miles on a charge and I may think about one.
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