How Much Money Is GM Losing On Every Chevy Volt?

September 14, 2012 12:00 AM

How Much Money Is GM Losing On Every Chevy Volt?

" Compared to its electric contemporaries, Chevrolet’s range-extended Volt is currently proving the most popular plug-in, posting its best-ever sales figures during August.

It’s out-punching the Leaf consistently, and other electric cars aren’t even getting a look-in. It’s even outselling Toyota’s Plug-In Prius.

But overall, Chevy is still a long way from meeting its projected 45,000 target for this year, with year-to-date figures around the 13,500 mark.

And, says Reuters, GM could be losing as much as $49,000 on every Volt it makes.

Packed with technology, the Volt is an expensive car to make, and GM isn’t making a great deal of money back on each one, despite the $39,995 base price. With some lease deals allowing customers to drive around in a Volt for as little as $5,050 over two years, GM’s return looks insignificant.

High production costs, low sales

Some industry analysts predict that each Volt costs at least $75,000 to manufacture, though some suggest this figure could be as high as $88,000.

The numbers are compiled by industry experts like Michigan-based Automotive Consulting Group and Munro & Associates, and factor in the Volt’s total development and tooling costs to date, divided among the 21,500 Volts sold to date "

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