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Next-generation Volt could cost as much as $10,000 less to produce

In the world of electric and plug-in hybrid vehicles, the Chevrolet Volt has been the most high-profile entry aimed at consumers. However, the biggest problem for GM when it comes to the current Volt is that the vehicle isn't profitable.

"This car, on a technology scale, is off the charts vs. what you [have] seen," said GM CEO Dan Akerson, who owns one personally. "We've sold about 26,500 of them [and] we're losing money on every one."

Akerson says that the loss GM takes on every Volt that it sales will soon come to an end. The automaker has significant improvement planned for the second-generation vehicle, including making it lighter. Less weight means that the electric driving range can be made extended without adding larger battery packs -- the battery pack on the current generation Volt battery weighs 400 pounds alone.

According to Akerson, GM believes that the cost to build the Volt can be reduced in the range of $7,000 to $10,000 on the second-generation model. That doesn't necessarily mean buyers will see a discount, but it will mean GM doesn't take a loss on each vehicle it sells.

The current Volt has proven to be a hit with owners, as many are claiming they can go as far as 900 miles between fill ups.

Source: Fortune

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RE: Bailout Mentality
By tayb on 5/3/2013 10:46:18 AM , Rating: 5
The Volt concept car was debuted in January 2007. Development on the Volt began in 2006. The idea that President Obama forced GM to develop a car 3 full years before he was elected President is amusing. The first GM bailout? President Bush presiding.

Many companies sell products at a loss to gain entrance into a market and then recoup the costs later due to decreases in manufacturing costs or add-on sales.

The Volt is cost prohibitive for most buyers but a $10,000 reduction in price would change the scenario for many people. If The Volt II sells well and is profitable who the hell are you to tell GM they shouldn't have taken a risk developing the initial product? The Volt III may be even cheaper and sell even better and none of it would have been possible without the initial risk and investment.

RE: Bailout Mentality
By lelias2k on 5/3/2013 11:23:30 AM , Rating: 2
I couldn't have said it better. Thank you.

RE: Bailout Mentality
By KCjoker on 5/3/13, Rating: 0
RE: Bailout Mentality
By 1prophet on 5/3/2013 8:23:55 PM , Rating: 3
And if Gm didn't kill the EV1 we probably be on Volt generation 3 or 4 by now,

but that takes long term vision which doesn't sit well with executives that believe in immediate profits, the root cause of GM's problems.

Former CEO Rick Wagoner admitted killing the EV1 was the biggest mistake during his tenure as CEO of GM.

RE: Bailout Mentality
By Lord 666 on 5/4/2013 9:14:44 AM , Rating: 2
Crushing them was the biggest mistake.

One can always put a pilot project on hold and revamp it later.

"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein
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