[motorhead]

Originally Posted by DGthe3

And just what constitutes a flop? Because by all measures, if you want to call the Volt a sales flop you'd have to also call the Corvette a sales flop. Last year they sold just 14k units, and the year before that, 27k. And they don't make a whole lot of money on them either. For years, decades really, it was suspected that GM lost money on each Corvette sold because the price and volume was relatively low yet R&D was high.


So wait, you expect that delivers far more than any other compact at the same price as any other compact? Thats not going to work. Follow the math: take a loaded Cruze, add $20k worth of batteries and other hybrid associated tech, and the end result is not $20k.

As for why, I'll go back to the Corvette. Why do they need to build those? Afterall, they can't be making a whole lot of money (if any) on them as is, so why bother? Three reasons: trickle down technology, dealer traffic, and brand image. The engine technology for the Corvette gets transfered to other cars, like the Camaro. Additionally, people get drawn into dealerships because of the 'halo cars' and ultimately settle for something less expensive (such as Corvette down to Camaro). And brand image is pretty self explanatory.

All three of those things also apply to the Volt, perhaps even more successfully than the Corvette. Things developed for the Volt like electric AC can easily be utilized in other GM vehicles, boosting their efficiency. And there will be quite a few people who balk at the price take of the Volt so they drive away with a Cruze instead. And image is obvious.

No, I don't expect that at all. The reason is because you don't need $20,000 worth of batteries to out perform the volt. All you need is a Ford fiesta. Which by the way has many very well thought out features for a lot less money and will cost you less to own.