Americans have been slow to embrace electric cars. But the Volt’s August sales show they are willing to buy if prices are low enough. Even so, electric cars have a long way to go before they enter the mainstream and make money for car companies. Electrics and gas-electric hybrids account for just 3.5 percent of U.S. auto sales this year. GM is losing thousands of dollars on every Volt, raising the question of how long it can keep absorbing the steep losses.You've got to lose money to lose money at Government Motors...
GM executives have conceded from the start that they were losing money on the Volt, and that was before the big discounts.
Now the losses could be even higher. It costs $60,000 to $75,000 to build a Volt, including development, manufacturing and raw materials, estimates Sandy Munro, president of Munro & Associates, a Troy, Mich., a company that analyzes vehicle production expenses for automakers. Much of the cost comes from an expensive combination of two power systems — electric and gasoline. With a sticker price of $40,000, minus the $10,000 the company pays in incentives, GM gets roughly $30,000 for every Volt. So it could be losing at least $30,000 per car.
GM confirmed there are incentives on the Volt and that the company loses money on the car. But the automaker declined to give figures for the discounts or the losses. The figures exclude a federal tax credit that goes to buyers.
Tuesday, September 25, 2012
"Have We Got A Deal For You"
The Chevy Volt still isn't exactly selling like hotcakes: