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The article seems to confuse the development costs and the marginal costs of production, which are two very different things. The marginal costs are estimated a
by vannevar 14y ago
The article seems to confuse the development costs and the marginal costs of production, which are two very different things. The marginal costs are estimated at $20K-32K per unit for a car with a base price of $40K, so the idea that GM is losing money on each Volt is simply wrong. The way they get there is to burden the first model year with the entire development cost, which of course is absurd even for a normal car. It's even more absurd for the Volt, which represents a strategic investment in an entirely new automotive platform, an investment that GM absolutely had to make if it wants to be around 20 years from now.
Rest assured, every Volt GM sells is a positive for the company.