GM Expects Next-Generation Volt to Be Profitable, Cost $10,000 Less to Build
May 3, 2013 9:04 AM
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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
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RE: Bailout Mentality
5/3/2013 1:18:33 PM
Your comparison is whacked. The Prius was funded by both Canada and Japan. The Prius had also been on market for a long time so it is in its profitable stage.
The volt weighs ~3.7k lbs
The Prius weighs ~3k lbs
The volt drives much better
The Prius drives like a boat
The volt can charge and go up to 40 miles in full EV
The Prius can't even get 5 miles
The Volt cost more
The Prius cost less
The volt has just recently been debuted and sold
The Prius has been sold since 97
The Volt has tax credit
The Prius also had tax credit
Conclusion: The volt is a better car but it cost more. It is a compromised evolution to become a full EV.
GM is approaching a practical EV starting from a hybrid. Tesla is approaching a practical EV starting from a luxury high tech EV.
We will get an EV either from Tesla or GM that can get 200 mile range in less than a decade that cost less than 40k. Eventually, we will get full EV with 300 mile range for 30k but don't expect it this decade.
RE: Bailout Mentality
5/3/2013 1:45:33 PM
As I clearly said in my initial post the Volt is probably a nicer car but it comes at a really steep price.
The problem is that they're selling the Volt at a premium price but they're marketing it as a "practical" car. You market fuel efficient econoboxes as "practical" cars. When you're trying to sell a $40k car you better have a better selling point than "it gets good fuel economy".
As a product goes, it's in "no-man's land". It's too expensive for the "practical" market they're targeting, but too bland for the luxury range in which it's priced.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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