Insight: GM's Volt - The ugly math of low sales, high costs | Reuters
Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher.
There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.
1 comment:
I take a back seat to nobody in criticizing GM for its outrageous bailout, its poor management, its rapacious unions, and its money-sucking boondoggle called the Volt.
But GM is NOT "losing as much as $49,000 on each Volt it builds." Reuters just doesn't understand the distinction between sunk costs and marginal costs.
There are plenty of reasons to worry that the Volt project (and GM more generally) will continue to squander taxpayer dollars, Reuters faulty analysis just isn't one of them:
http://senatorjohnblutarsky.blogspot.com/2012/09/no-gm-is-not-losing-49000-on-every-volt.html
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