Print 92 comment(s) - last by Mint.. on May 7 at 9:42 AM

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 Reclaimer77 on 5/5/2013 7:30:35 PM , Rating: 1
Toyota and Honda are selling hybrid cars that are about $20,000 without the tax credit. You really think GM is competing with that?

They ARE competing actually, just not with the Volt. The Cruze Eco is everything the Volt isn't. It's profitable, it's selling in huge numbers, it's what people want. It's very competitive with the Prius and other hybrids.

It's almost like Volt supporters don't even know the vehicle exists. That or they just can't bring themselves to acknowledge it's the only real "game changer" GM has brought to the table.

I really wish I knew what it was like to be so out of touch with reality. For something as widely hyped and marketed as the Volt, it's been a complete sales disaster. Seriously, why can't you guys admit it? And nearly a third of Volt sales have gone to Crony company #1 General Electric (supplier of charging stations) and other Federal Agencies and State Governments.

In other words, the public at large is roundly rejecting the Volt and the entire concept of this type of vehicle. And you can insult me and hate me all you want, but those are the facts!!! Stop the rhetoric, and deal in facts.

Sales of the Volt this year are down 35% from where they were last year. And yet all we hear from GM and the media is what an amazing product it is. Wake up! It's not just GM that's losing money on this, it's America as well because our tax dollars are still owed. The business strategy seems to be politically-driven, since there is no economic reason to pursue a technology that has been a proven failure in the free market, despite taxpayer subsidization.

RE: Bailout Mentality
By Mint on 5/7/2013 9:42:50 AM , Rating: 2
Why do you think a $20k Cruze Eco competes with a $32k Volt? They have completely different standard equipment and ride quality. Yes, the Eco is a competitor to the Prius, but it only matches up to the Volt if you add a bunch of equipment, and even then you won't get the silent ride or instant torque of the Volt.

Volt sales are down 35%? First four months of 2013 are better than first four of 2012. Sure, GM would like it to do better, but it's a long term investment. They can't get $10k cost reductions in the next gen without going through the first gen.

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