The Herald of Everett, Washington
Customer service  |  Subscribe   |   Log in or sign up   |   Advertising information   |   Contact us

The top local business stories in your email

Contact Us:

Josh O'Connor
Phone: 425-339-3007

Maureen Bozlinski
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049

Jim Davis
Phone: 425-339-3097

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

GM challenges estimate of huge loss on Volt

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Nathan Bomey
Detroit Free Press
DETROIT -- General Motors labeled as "grossly wrong" a media report calling the Chevrolet Volt a major money-loser.
Reuters estimated that GM is losing as much as $49,000 on every Volt, but the automaker said the wire service's calculations ignored that development costs are typically spread out among all vehicles sold over the course of the model's lifetime.
GM has acknowledged it's losing money on the Volt, but won't say how much. But GM argued that its investment will pay off over time as Volt sales accelerate and the cost of the extended-range electric/generator powertrain comes down and is offered in other models over time.
The car, which can travel up to 38 miles on a battery charge before a gasoline-powered generator kicks in, has missed GM's original sales targets for 2012. Chevrolet sold 2,831 Volts last month, its strongest month since its launch.
Reuters wrote that "the loss per vehicle will shrink as more are built and sold."
"Every investment in technology that GM makes is designed to have a payoff for our customers, to meet future regulatory requirements and add to the bottom line," GM said in a statement. The Volt is no different, even if it takes longer to become profitable."
It's the latest in a series of publicity challenges for the Volt, which conservatives has criticized as the Obama-mobile, despite the fact that it was in the works years before Barack Obama considered running for the White House. The car was first introduced as a concept vehicle in January 2007, two years before Obama took office, and was first sold in fall 2010.
Sales of gasoline-electric hybrids that don't need to be recharged have risen 65 percent this year through August to 278,680, led by Toyota's family of Prius models, which accounted for 57 percent of that market segment.




Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup