The Obamamobile loses $49K per vehicle, yet another example how Obama just does not get it.
Take a good look at what Barack Obama touts as the future of car travel. General Motors Chevy Volt loses on average $49,000 per every Volt that they build. WOW, there’s a business plan, create a product that cost nearly $50K more than what you get back in return. What fool thinks this stuff up? No wonder as Weasel Zippers states, the Chevy Volt, the official car of the Obama administration. As the Lonely Conservative opines, Obama has been talking up the takeover of SM as one of his signature achievements. Imagine that, Obama praising a company that loses $49,000 per vehicle. This sounds much like his stimulus plan. Obama and the Chevy Volt, perfect together.
General Motors Co sold a record number of Chevrolet Volt sedans in August — but that probably isn’t a good thing for the automaker’s bottom line.
Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts. GM on Monday issued a statement disputing the estimates.
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.
And while the loss per vehicle will shrink as more are built and sold, GM is still years away from making money on the Volt, which will soon face new competitors from Ford, Honda and others.
GM’s basic problem is that “the Volt is over-engineered and over-priced,” said Dennis Virag, president of the Michigan-based Automotive Consulting Group.