Chevy dealer charging $20K over MSRP for Volt

[BigRigMike]

Originally Posted by 1bad65

Yet I haven't seen one Ford dealer charging mark-up on the new 5.0s. I actually test drove one recently and they were very willing to cut the sticker price as well.

Start asking for a GT500 and see what they say. Worst I saw was $30,000 for the GT500 KR. I was even looking at a 2010 Fusion Hybrid that had a sticker saying market adjustment $1,000.

I bet when the Electric Focus shows up it will have a mark up on it.

[1bad65]

Originally Posted by BigRigMike

Start asking for a GT500 and see what they say.

Notice how I specifically said "the new 5.0s".

[LS1owner]

I just cant get with this market adjustment stuff when these same companies had dealers closed down by GM etc...Why would you not want to sell as many as possible? The interest to GMAC, the service/parts for years, its a money making machine. Get as many out as you can would be my way if i was in charge which im not.

[DGthe3]

Originally Posted by LS1owner

I just cant get with this market adjustment stuff when these same companies had dealers closed down by GM etc...Why would you not want to sell as many as possible? The interest to GMAC, the service/parts for years, its a money making machine. Get as many out as you can would be my way if i was in charge which im not.

There isn't an unlimited supply of Volts to be had though. This particular dealership said that they will only get 9 of them for the first year. GM won't be building tons and tons of them because they'd go broke since they expect to lose money on them.

The dealership closings, thats another issue altogether. But from what I understood, most of the ones that closed were either for dead brands or were in close proximity to another dealership selling the same brand(s).

[ViperTomcat]

Butler Ford and Crater Lake Ford in Southern Oregon are both MSRP or below dealers. The 2011 GT500 they had (Crater Lake Ford) didnt have one single penny of ADM/Market Adjustment on it.

Airport Chevrolet next door (two blocks down) put a 3,000 mark up on a LT Camaro and a 5,000 on a IOM SS. Every Camaro they have has a markup of at MINIMUM 2,000 bucks.

Guess who is selling more cars

[1bad65]

Originally Posted by DGthe3

GM won't be building tons and tons of them because they'd go broke again since they expect to lose money on them.

Fixed that for ya.

Seriously, I still can't fathom why a company who just got a bailout is touting a car that they admit they will lose money on. It's complete madness, imo.

[DGthe3]

Originally Posted by 1bad65

Fixed that for ya.

Seriously, I still can't fathom why a company who just got a bailout is touting a car that they admit they will lose money on. It's complete madness, imo.

Short term loss for long term gain. Toyota lost money on the Prius, now it is half the hybrid market and is turning a profit for them.

[1bad65]

Originally Posted by DGthe3

Short term loss for long term gain. Toyota lost money on the Prius, now it is half the hybrid market and is turning a profit for them.

I don't believe Toyota got a taxpayer funded bailout. And you can't say for certain there will be long term gain/profit in it, you're just speculating. It's a gamble, and with their past financial history I'm not exactly confident in their speculations.

[DGthe3]

Originally Posted by 1bad65

I don't believe Toyota got a taxpayer funded bailout. And you can't say for certain there will be long term gain/profit in it, you're just speculating. It's a gamble, and with their past financial history I'm not exactly confident in their speculations.

You asked why. I gave you the most reasonable explanation I can think of.

Also, the Volt program began well before they got any bail out money and probably had a solid billion dollars invested into it already. Cancelling it at that point would have been incredibly stupid since they'd never get a dime back out of it.

[Brokinarrow]

Originally Posted by 1bad65

I don't believe Toyota got a taxpayer funded bailout. And you can't say for certain there will be long term gain/profit in it, you're just speculating. It's a gamble, and with their past financial history I'm not exactly confident in their speculations.

Toyota is also protected on it's home turf... just sayin. Anyway, the way you get ahead in business is by taking calculated risks. A company that takes no risks goes nowhere and will be destroyed by the competition.

[1bad65]

Originally Posted by DGthe3

Also, the Volt program began well before they got any bail out money and probably had a solid billion dollars invested into it already. Cancelling it at that point would have been incredibly stupid since they'd never get a dime back out of it.

How are they getting any dimes back from the project by selling the cars at a loss?

Originally Posted by Brokinarrow

A company that takes no risks goes nowhere and will be destroyed by the competition.

That's not always true. Coke used the same formula for decades, and they were the #1 soft drink for all those years. But when they took a risk and tinkered with the time proven formula, they lost tons of money and market share.

Businesses just need to make SOUND decisions to prosper. And selling electric cars at a loss to the company is not a sound business decision in my opinion. Time will tell who is right about this car. I'm confident I won't be wrong by predicting it will be a flop. After all, I have history on my side, as the American public has never demanded (or even wanted) electric cars in big enough numbers to make selling them a profitable venture.

[DGthe3]

Originally Posted by 1bad65

How are they getting any dimes back from the project by selling the cars at a loss?



That's not always true. Coke used the same formula for decades, and they were the #1 soft drink for all those years. But when they took a risk and tinkered with the time proven formula, they lost tons of money and market share.

Businesses just need to make SOUND decisions to prosper. And selling electric cars at a loss to the company is not a sound business decision in my opinion. Time will tell who is right about this car. I'm confident I won't be wrong by predicting it will be a flop. After all, I have history on my side, as the American public has never demanded (or even wanted) electric cars in big enough numbers to make selling them a profitable venture.

They know that the costs will come down and make it profitable. I've heard that the next generation of battery will cost around $5,000 less to produce. Thats the battery alone. Don't you remember my post about short term losses for long term gains?

And you have your history wrong. There was a time when electric cars were quite popular, particularly with women. They were quiet, smooth, and simple and I think they were the most popular form of automobile, ahead of the ICE and steam. And all of them were profitable too.

And for the record, the Volt is not an electric car. Its a hybrid.

[a_Username]

Originally Posted by 1bad65

How are they getting any dimes back from the project by selling the cars at a loss?

As DG has already said, it's simply a high-risk decision to sell this car. It could make money for them in the long run, due to increased public opinion and manufacturing advancements to cut costs on the vehicles (not to mention a possibility of the targeted audience increasing).

That's not always true. Coke used the same formula for decades, and they were the #1 soft drink for all those years. But when they took a risk and tinkered with the time proven formula, they lost tons of money and market share.

Businesses just need to make SOUND decisions to prosper. And selling electric cars at a loss to the company is not a sound business decision in my opinion. Time will tell who is right about this car. I'm confident I won't be wrong by predicting it will be a flop. After all, I have history on my side, as the American public has never demanded (or even wanted) electric cars in big enough numbers to make selling them a profitable venture.

Coke's high-risk decision simply didn't pay off, just like most high-risk decisions will not. In an emerging market, it really is all risk (look at Ford back in the early 1900s). Economic statistics refer to the past, and as such does not mean that this regularity must happen again in the future. Consumer demand is always changing.

[ViperTomcat]

Volt will help GM with its CAFE issue..but thats about it. I fear this could be a fairly significant problem if there is not enough demand to lower costs.