Thinking of buying a Chevy Volt? It might be good for the environment and not so good for General Motor’s (GM) bottom line. Reports are now showing that GM is losing up to $49,000 for each
vehicle is sells.
Introduced two years ago, the Volt was to be GM’s shining entry into the electric vehicle market. Since then market problems, have struck Honda, Mitsubishi and Nissan, who have been struggling to sell their electric and hybrid vehicles. The company with the inside track in the electric and hybrid vehicles has been Toyota, who’s Prius models have been in increasing demand.
GM forecast of 35,000 – 40,000 units sold in June of 2012 fell short selling only 10,666 through the month of July 2012. The lackluster sales The weak sales are forcing GM to idle the Detroit-Hamtramck assembly plant that makes the Volt beginning September 17, for a period of four weeks. This is the second time GM has had to idle Volt production this year. GM publicly admits the Volt is losing money, and their long range sales forecast suggest GM might not reach break even until the next generation model debut’s in 2015.
Industry analyst’s report that it costs GM “at least” $75,000 to build the Volt, including development costs. That cost doesn’t include the $7,500 federal tax credit provided as part of President Obama’s green energy policy.
What’s keeping buyers out of the showrooms? The $39,995 base price for the Volt for starters. Also those who are technically challenged are balking at the extended time for recharging the vehicle’s lithium-polymer batteries.
The Volt is really a vehicle looking for it’s niche. The vehicle can only travel 38 miles on it’s batteries before needing to find a place to plug in and recharge. Looking at the larger issue, of vehicle charging stations or lack thereof, and the fact that the current configuration of the U.S. Electrical Grid isn’t built to handle the charging of electrical vehicles.
Looking at the auto industry, GM continues to be the poor red headed step child who’s hemorrhaging tax payer dollars. On the other hand Toyota, now makes a profit on the Prius, which was introduced in the United States in 2000.
$39,995 Base Price.
38 Mile Range.
Home plug in charging units costing $900 – $2000.
$7.5 billion in wasted tax dollars for a Government policy and product Americans aren’t buying.
It certainly occurs to many that the child in us needs to cry out, to pull the plug on this venture.