Chevrolet Volt

[Mr. Wyndham]

'noder Update:

GM: We'll Lose Our Shirts on the Volt, But That's OK

By Chuck Squatriglia
March 20, 2008
1:55:59 PM
Categories: Chevrolet Volt


The Chevrolet Volt might just prove to be the game-changing car its supporters say it is, but General Motors expects to lose money on the car "for years," said Vice Chairman Bob Lutz.

Maximum Bob's frank admission isn't terribly surprising given the resources GM is pouring into the Volt and the expense of the technology behind the range-extended EV, but you've got to admire his honesty.

"We won't make a dime on this car for years, and the board is OK with that," he told a group of Volt enthusiasts at the New York International Auto Show, according to the Detroit News.

As for the car itself, Lutz says it's still on pace for a late 2010 launch. Battery testing is going well, he said during a meeting with reporters, and the competition to supply the batteries is "a horse race" that will run "a little longer."

And why is GM prepared to lose its shirt?

Lutz said GM screwed up by ceding the hybrid market to Toyota even though it had largely mastered EV technology in the 1960s. The General won't make that mistake again, he said, even if it means subsidizing the Volt until it's firmly established. That's a noteworthy about-face, because according to Lutz, GM dropped the ball on hybrids because it believed it would lose $250 million a year selling them. Toyota, on the other hand, decided that short-term losses on the Prius would pay huge dividends once it caught on.

GM clearly hopes the same strategy will work with the Volt and put the company at the forefront of automotive technology. There's no question GM hopes to leapfrog Toyota and claim the green mantle -- a point Lutz stressed in an interview with Wired.com not long ago.

Johan Willems, global director of communications for GM, told us he couldn't confirm the Detroit News story but said "it is absolutely normal" to "not prioritize making money for some time" when adopting new technology.

"We need to get people rallying behind new technology and the Volt will not be an exception to that rule," he said. "In general, it takes a couple of generations of learning before a certain volume can be reached and that with volume the making money question is solved."

And about those batteries? Lutz says GM hoped to name a battery supplier next month but is still testing battery packs from Compact Power and Continental Automotive Systems. As for who's got the edge, Lutz wouldn't say.

"It's a horse race," he said, according to the Associated Press. GM plans to "run the two in parallel for a while longer" before deciding which batteries to put in the Volt. Both "have extreme strengths and some weaknesses, but the balance of strengths and weaknesses are different between the two potential suppliers."

Lutz still says the Volt will be done by late 2010, and so far the engineers haven't hit any major snags. "We are doing all of the testing and so far I will say, no failures, no problems. The battery technology is working great."

Photo courtesy GM

http://blog.wired.com/cars/2008/03/gm-well-lose-ou.html

[stovt001]

I wonder if the money lost accounts for the offset of not paying CAFE fines. If it doesn't, then this might be a better deal than we think.

[DGthe3]

The volt is worth more to GM than its sticker price, I'm glad the understand that. I'm sure that they will sell them as soon as they get off the truck at the dealerships, but given the massive investment it will have to take a while to pay off. If they are priced right, I would consider getting one if for some reason I can't get a Camaro.

They have been the leader in electric cars in the past, they know how to make 'em. But they face the same thing that killed electric cars every single time they've gone on sale: batteries. Li-ion could help solve that.

[TAG UR IT]

Blasphemy,  you might say....BUT, if my new 5th Gen Camaro could get the first 40 miles w/out using a drop of gas.....oooooooooooooh, I'd be in

HEAVEN!!!

And then with the flip of a switch, wide open throttle and a roaring engine....oh, the best of both worlds.

I can't wait to see this Volt hit the streets. GM is going to clean house with this car. Man...if I could only afford one. I'd drive the Volt to and from work never using a drop of gas again....and I'd drive the Camaro all the rest of the time. How cool would that be!?!?!

[unkbd]

My understanding is that they want to keep the Volt priced fairly moderately. The most expensive part of the car will be the battery, and there was talk at one time of leasing that to the buyer of the car. If they do it right I think that the Prius will be the next Yugo.

[GothamCamaro]

I'm late on the Volt thread, totally fascinated with this car, it looks cool but what it can potentially do, is what gets me. It's kinda mind blowing and this really could be something for the history books when we look back to what the Volt launched. Very exciting.

Honestly, if it weren't for the Camaro, this would have be top on my list of cars. At $30,000-$35,000 as base though, I could never have both. :(

We do take a lot for granted with our cars and we see that with the Volt engineers trying to work on getting the power accessories to work without messing with the main battery. I think GM made a great leap in skipping on the hybrid and going this route but in the end... they are gonna be kings with this Volt. Bring the Volt home GM, we need you so that the gasoline that's not going to be used, can be used for our Camaros!

P.S.- Didn't see a link to the Volt site, Bob's been busy there too for news. He's got a lot on his plate, my head would explode with the Volt and Camaro!
http://www.gm-volt.com/

[Evil Destroyer of Death]

Yes finally a choice over that mouse box Prius. The Volt is great drive me to work, get some grocery getter car.

[Johnnie Paul]

I am holding out for a 'Green-&-Gold' flavored Volt, but I'll take what ever color is available when it hits Alabama!!

...same goes for the Camaro.

Johnnie

[Silverado]

Here's an article to check out.....

http://www.topspeed.com/cars/car-new...t-ar54958.html

And a little follow up article....

http://www.topspeed.com/cars/car-new...t-ar54976.html

[The_Blur]

That price tag just killed the Volt. It's a shame. No one will buy it for that.

[Mr. Wyndham]

Originally Posted by The_Blur

That price tag just killed the Volt. It's a shame. No one will buy it for that.

There's still 2 and half years to go. They'll figure something out. Plus, this could have been taken out of context again, like his "Premium" statement regarding our car. He said they'll be taking a loss on each sale of this car earlier last month, so maybe they'll be taking a 18,000 dollar loss; 48,000 is really how much each costs to make? Just throwing it out there.

But I will say this, despite a high pricetag, this car's goal is to revolutionize the buisness, not just shift more sales to GM. I think it will do that incredibly well.

[GothamCamaro]

Originally Posted by Dragoneye

There's still 2 and half years to go. They'll figure something out. Plus, this could have been taken out of context again, like his "Premium" statement regarding our car. He said they'll be taking a loss on each sale of this car earlier last month, so maybe they'll be taking a 18,000 dollar loss; 48,000 is really how much each costs to make? Just throwing it out there.

But I will say this, despite a high pricetag, this car's goal is to revolutionize the buisness, not just shift more sales to GM. I think it will do that incredibly well.

You're right Dragon, this car will revoluntionize the business but at even $35,000 I would not be in on the Volt. When they're at $30,000, I'll be able to think about affording one.

[DGthe3]

The other thing to keep in mind is that the Volt will save people roughly $2000 on gas each year while paying a fraction of it back for electricity. So, over the course of 5 years, thats around 10k in savings (assuming drop in battery performance is cancelled by an increase in gas prices). Plus there will be very few engine problems. Most of what you pay is up front for the Volt.

[GTAHVIT]

The numbers seem to add up to me. Lutz said they'll initially take an 18k hit and the car was projected at 30k.

However I can understand the writers point. If you're gonna do it do it right. I hope their bluff didn't get called.

So, some simple math. We'll stick to monthly cost for simplicity. My truck has a $425 payment + $400 in gas = $825 a month. Mazda $400 payment + $200 in gas = $600 a month

Volt at 48k at 5% for 5 yrs the payment is about $900 with almost no gas costs. At 40K the payment would be about $750. At 30K with the same loan the payment is about $560.

So, a Volt at 48k would cost me $75 more a month than my truck and $300 more a month than my Mazda.

At 40k it would be $75 less than the truck and $150 more than the Mazda.

At 30k a Volt will cost me $265 less than my truck and $40 less than the Mazda.

So for me, even at 48K it is still almost as expensive as my truck is to operate a month.

Come 2011 there may be two new Chevy's in my garage.