GM Calls Reuters Report About the Volt, ‘Grossly Wrong’ image

GM called ‘grossly wrong’ the media report which described the Chevrolet Volt as a major money loser.

Reuters published a report in which it estimated that GM loses as much as $49, 000 per each Volt it manufactures, but GM said that the calculations made did not take into account that development costs are divided among all cars sold over the course of the model’s lifetime.

GM confirmed the fact that it is losing money on the Volt, but refused to declare how much. The automaker is still confident that the investment made now will pay off in the near future as Volt sales begin to accelerate and the price of the extended-range electric/generator powertrain begins to decrease. Although GM didn’t manage to reach its 2012 sales target, sees sales recovering after some dealers started offering a cheap lease. In August the Volt sold 2,831 units, the best month since its launch.

“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.”

  • Detfan

    The attack on GM continues, only to try to get to Obama. It is a sad commentary on our current news agencies, mostly conservative outlets. In truth, GM has put about $1 billion into developing the Volt. They have, at the end of August produced 42,148 Voltec cars. If you amortize the investment by the number produced, GM investment is currently at $23,726 per Voltec car. When Voltec production hits 100,000 units the cost per vehicle goes down to $10,000 per vehcile. When GM produces 500,000 Voltec cars, the investment cost per car will be $2,000 per car. You get the picture.

    In addition, the 2013 Volt gets 9% better electric mileage, and the next gen Volt(2015?), will have a battery 2/3 the size with 50 more capacity, a fifth seat, and lighter weight giving the gas generatoer the abilty to get over 45 MPG.

    GM has certainly established itself as the leader in electric drive with no range anxiety. The next couple of generations of the Volt and its siblings will be exciting to see, that is for sure.