Last Updated:October 30 @ 05:32 pm

GM Loses Money with Every Volt it Sells

By GOPUSA Staff

There's something to be said about capitalism and letting the market determine what will succeed and what will fail. If people like something or need something, they will buy it. They don't need incentives or prodding from the government. On the other hand, if government steps in and subsidizes something that people don't want, guess what we get? That's right... a big pile of wasted money. Just look at what's going on with GM's Chevy Volt.

As reported by Reuters, "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." Can you believe that? But GM keeps building them? The question is, why?

According to the news story, the base price for a Volt is $39,995. But the cost to produce one is closer to $89,000.

The lack of interest in the car has prevented GM from coming close to its early, optimistic sales projections. Discounted leases as low as $199 a month helped propel Volt sales in August to 2,831, pushing year-to-date sales to 13,500, well below the 40,000 cars that GM originally had hoped to sell in 2012.

Out in the trenches, even the cheap leases haven't always been effective.

A Chevrolet dealership that is part of an auto dealer group in Toms River, New Jersey, has sold only one Volt in the last year, said its president Adam Kraushaar. The dealership sells 90 to 100 Chevrolets a month.

Part of the problem is the Obama administration's hands on the throat of GM. By having so much influence, the normal metrics that determine if a car will continue to be developed and marketed are completely thrown off. Obama's "green energy policy" provides a $7,500 tax credit to people who buy a volt. Not only is the Obama administration pushing for a car that Americans don't want, but Obama is using the tax code to try to pick who wins and who loses. The American people can do that without government interference.

Read the full story at Reuters.com

VN:F [1.9.6_1107]
Rate this post:
Rating: 9.3/10 (97 votes cast)
GM Loses Money with Every Volt it Sells, 9.3 out of 10 based on 97 ratings





Don't leave yet! Add a comment below or check out these other great stories:

29 Comments

  1. ggfilthyComment by ggfilthy
    September 10, 2012 @ 2:27 pm

    I expected nothing less from these clueless pinheads in washington…The logic “they” use is: we’ll just make it up in volume …. And that just shows the level of business sense the “professional politicans” controlling our lives have. Much like the useless windmills….It take more energy to make a windmill than what it can create in it’s life cycle. Again…the pinheads contend: “we’ll make it up in volume”. If this administration sqeaks by with another win for 4 more years….GOD HELP US ALL….and I mean the whole frickin’ world!

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 4.7/5 (26 votes cast)
    • agent007Comment by agent007
      September 10, 2012 @ 3:36 pm

      The DNC alone created enough hot air to keep quite a few windmills going!

      The windbags are deflating fast!

      Not so silent, but oh so deadly, those Democrats

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 4.0/5 (12 votes cast)
  2. inluminatuoComment by inluminatuo
    September 10, 2012 @ 2:47 pm

    GM loses money with very VOLT it sells,

    Obama loses US money with every VOTE he Buys!

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 4.5/5 (30 votes cast)
  3. msconservative444Comment by msconservative444
    September 10, 2012 @ 2:56 pm

    Nothing this administration does makes any sense. All they want to do is squander our money without restraint. From Solyndra to food stamps to amnesty to the bailout and everything in between they are deliberately trying to decimate the economy and ruin this country.
    VOTE THEM OUT IN NOVEMBER!

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 4.7/5 (27 votes cast)
    • nmleonComment by nmleon
      September 11, 2012 @ 5:18 pm

      They make perfect sense. The Dumbocraps want to see everyone “equal”. It’s unfair for one person or country to be better off than another. They’ve got to take us a long way down before we are “equal” with the Democratic Republic of the Congo, but they’re doing their best.

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 5.0/5 (2 votes cast)
  4. sirodComment by sirod
    September 10, 2012 @ 3:33 pm

    VOTE VOTE VOTE GET EVERYONE YOU KNOW TO VOTE. CLEAN OUT THE WHITE HOUSE.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 4.4/5 (21 votes cast)
  5. Eagle OneComment by Eagle One
    September 10, 2012 @ 3:59 pm

    In perspective, it is costing US taxpayers $89,000 PLUS for Government Motors to produce each VOLT. If that’s not “SHOCKING” enough, their spending more of our tax money to con you into buying the damned thing as well at $50,000 below cost! AND THEY STILL WILL NOT SELL!
    Cut the production, FOOLS!
    These people are totally and utterly bereft of anything that even resembles common sense.

    I got an idea GM. Give me one for free. I’ll proudly put it in my front yard and jack it up on blocks to demonstrate just how useless
    this *** really is. I’ll even take a couple of wheels off and leave the hood up for good measure. :)

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 4.3/5 (16 votes cast)
  6. Jerry SmithComment by Jerry Smith
    September 10, 2012 @ 4:07 pm

    Only the government could be this inept. GM loses $49,000 on every Volt they sell but do they drop the line and cut their losses like a normal company? No. Instead Obummer orders the government to buy more Volts and tells GM to offer leases that can’t possibly make money. The Volt is part of Obummer’s “Green Dream” and like any ideologue he’s not about to let common sense get in the way of leading us to worker’s paradise. Obummer didn’t “save” the auto industry, he’s subsidizing it with our tax dollars. Those who think he could do a better job of running our health care system raise your hands. I’m taking your names and reporting you because you are obviously too stupid to vote in November.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 4.3/5 (18 votes cast)
    • middlegroundComment by middleground
      September 10, 2012 @ 9:39 pm

      Communists seem to practice the thought that ten men are required to do the work of one, and that it is important to meet quotas even if you can’t sell the dogs. Everyone knows about the Volt, but what about the car they called the BRICK because once the battery was exhausted the car was as useless as a BRICK.

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 3.2/5 (5 votes cast)
    • cgretiredComment by cgretired
      September 11, 2012 @ 12:36 pm

      Wait a minute. If the obamaites are providing a subsidy as it is, they can’t offer any incentives that will make money, no matter what they do. It’s a losing proposition no matter what action thay take. Even getting rid of the product line has already cost us $89,000 to build the darned things and will cost even more to dispose of them.

      Imagine the environmental impact statement needed if one gets scrapped!

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 5.0/5 (1 vote cast)
  7. Art BlenkleComment by Art Blenkle
    September 10, 2012 @ 4:42 pm

    The Chevy Volt is the Edsel of 2012!

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.0/5 (8 votes cast)
  8. Gary L PerryComment by Gary L Perry
    September 10, 2012 @ 5:18 pm

    This is what happened in the former Soviet Union.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.5/5 (8 votes cast)
    • middlegroundComment by middleground
      September 10, 2012 @ 9:42 pm

      Isn’t that what Putin told Obama? Namely, that Communism doesn’t work.

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 1.0/5 (3 votes cast)
  9. Pingback: Bailouts Gave Us the Volt for $89,000 | Independent Sentinel

  10. skepticaleyeComment by skepticaleye
    September 10, 2012 @ 6:30 pm

    “But wait!” Joe Biden says, “GM is alive and Osama bin Laden is dead.” He got one right, but GM is only alive because of the government bailout, and even now every Volt buyer is only subsidizing an ongoing bailout.

    Cut the Volt program or if GM runs their business like this there won’t be a second time around bailout. The government still owns 26% and UAW Retiree Trust still owns >10%, and those major shareholders still rule the roost. So the US taxpayer will bear a big part of the burden if they fail.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.9/5 (7 votes cast)
    • rholden46Comment by rholden46
      September 10, 2012 @ 9:01 pm

      how about those retiree’s that bought GM bonds and expected income for “ever” and the government changed the rules and gave their share to unions and gov’t themselves. AND obama wonders why we do not invest in america??

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 4.2/5 (10 votes cast)
  11. goodguynyComment by goodguyny
    September 10, 2012 @ 6:30 pm

    No one,,I mean NO ONE with any smarts would buy a vehicle that only goes a MAXIMUM of 40 miles on a charge. The Volt also has a gasoline engine that allows it to go 300 miles on a tank. So why would someone buy one of these at $39,000 when they can but a Nissan or Toyota that will get 5 -600 miles per tank and cost half??? GM should have gone down the toilet instead of Obama feeding the Unions just to keep votes.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.8/5 (10 votes cast)
    • deputygeneComment by deputygene
      September 11, 2012 @ 6:13 am

      goodguyny,
      If your daily commute is 40 miles or less, which ours is, the Volt makes sense. It is a niche vehicle, we understand that, but we fit that niche. We have one and love it. I am tired of $4.00 per gallon gas, and my wife can charge hers where she works. This might be the 2012 edsel, but we are loving NEVER having to buy gas. The battery pack is warranted 10/100,000, and our breakeven point is six years.
      I am a republican, and I think Romney will win, but we, as a nation, are going to have to reduce our dependance on fossil fuels. The Volt works for us.

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 2.7/5 (9 votes cast)
    • agent007Comment by agent007
      September 11, 2012 @ 7:40 am

      Dear deputygene,

      While I agree with you that as a nation we need to redue our dependance on fossil fuels:

      What do you think is used to create your precious electricity? Unless it’s from a nuclear reactor, it will be fossil fuels!

      How much per mile in electricity does your Volt cost you?

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 3.9/5 (7 votes cast)
    • cxComment by genesal
      September 11, 2012 @ 10:13 am

      and the fire can keep you warm one night

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 3.7/5 (6 votes cast)
    • nmleonComment by nmleon
      September 11, 2012 @ 5:26 pm

      deputygene,

      I’ll keep my dependence on whatever fuel is cheapest, thank you very much.

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 3.7/5 (3 votes cast)
  12. Comment by AcadGrad81
    September 10, 2012 @ 11:16 pm

    We should all carefully “fact check” the lies that the Obama campaign is spouting when they say the auto industry bail-out “saved” 1.5 million jobs. Of course the joyous faces on camera at the DNC convention last week were lapping it all up like cotton candy. Tonight, I heard Mark Levin summarize data from an article, and the 1.5 million figure includes the vendor base and all service industry work connected to auto manufacturing. Believe it or not, the figure also throws in Japanese brands, i.e., summing up the whole auto industry work force that “would have been lost” if the first domino or two were to fall, thus starting a chain reaction on down the line. The Democrats are flat-out lying to us in their ads and they seem to be getting away with it!

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.9/5 (11 votes cast)
  13. clarkentComment by clarkent
    September 11, 2012 @ 12:26 am

    Item 1: The electric cars cost more. Item 2: Where is the savings. Item 3: What does a replacement battery cost? Item 4: How well will they sell on the used market, because most people purchasing used cannot afford them or the replacement batteries.Item 5: It takes household electricity to charge, so you are running up your home electric bill.More cost, More cost, More cost.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.6/5 (9 votes cast)
    • deputygeneComment by deputygene
      September 17, 2012 @ 12:20 pm

      Clarkent,
      Yes the electric cars cost more, the savings will come from not buying gas. The breakeven point for us will be 6 years, at that point the car will have paid for itself. A gas car, at even half the price, will still be costing in gas use. ours won’t. The replacement battery is very costly, I hope it goes out and is replaced prior to the 10/100,000 mile warranty. The battery is in cells, and each individual cell can be replaced. You are right, probably won’t sell for squat on the used car market, we plan to run it till the wheels fall off. A lot of other Volt owners I have talked to are allowed to re-charge at work, with companies striving to go greener. The ability to charge at work was just a bonus.

      VN:F [1.9.6_1107]
      Rate this comment:
      Rating: 0.0/5 (0 votes cast)
  14. cxComment by genesal
    September 11, 2012 @ 10:15 am

    Why is it that the government wanted you to buy a new gasoline car *(cash for klunkers) but now want you to buy rubber band and battery cars. Get NASA on battery development now or shut up.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 2.3/5 (3 votes cast)
  15. hardheadedComment by hardheaded
    September 11, 2012 @ 10:56 am

    Somthing is wrong with this, G.M. in 1999 was building and trying to get people to drive Electric cars(EV) in Californa.
    So the Recurce and Development has been done and should not need to be that exspenceve,But if we don’t buy GAS the road tax,(that repaires our Roads), and OIL companys over seas don’t make any money.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 2.0/5 (4 votes cast)
  16. goodguynyComment by goodguyny
    September 11, 2012 @ 11:04 am

    Why was the EV withdrawn and all of them destroyed? There were only 200 of them and they are gone (so we are told). Was it the influence of the Oil industry that caused it??? We need answers before we start depending on these untested cars. If you do not have to buy gasoline then that is fine but how many people actually have a commute of under 40 miles a day and can charge their cars at work? And I think the 6 years is an awful long time for payback for a car. Most cars are worn out by then,,,especially those built by Government Motors. I know, I have owned several of them over my 46 years of driving and would never own one again.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 2.8/5 (4 votes cast)
  17. hardheadedComment by hardheaded
    September 11, 2012 @ 11:23 am

    Because of the E.P.A.and lawsuit that was pending, and they did worked then but if ther is no tax income from the gas then we will have to pay for the repair some other way.
    It’s like the Deseil engine that is built here in America that gets 78 miles to gallon but we can’t have because of the E.P.A.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.2/5 (5 votes cast)
  18. hardheadedComment by hardheaded
    September 11, 2012 @ 11:32 am

    Also we have not built anymore power plants to take care of the needed power that we will need.
    Just think that would create Jobs!

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.3/5 (3 votes cast)
  19. cgretiredComment by cgretired
    September 11, 2012 @ 12:39 pm

    Hmmm.. so, say the consumer buys one at $39,000 without discount. It cost $89,000 to build. Does that mean that the consumer has a built in equity of $50,000?

    I don’t think so. Buy one at $39,000, drive it out of the showroom, and instantly, it’s “worth” $30,000… well, you know what I mean.. if it were worth ANYTHING, that is.

    So, there is absolutely no way for GM to make anything on it, no matter what they sell it for unless that figure goes over $89,000. If they discount it to $30,000 then the loss is even greater!

    More proof of the incompetency in the White House.

    VN:F [1.9.6_1107]
    Rate this comment:
    Rating: 3.7/5 (3 votes cast)

Leave a Comment





Fresh Ink Archives

  • October 2014
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • Reference Pages

  • About
  • Network-wide options by YD - Freelance Wordpress Developer