The Chevy Volt is in many ways GM’s flagship into the future. Many people are critical of the car, saying it doesn’t go far enough on electric power. Others are critical of its cost, which—between media speculation and hints from GM execs—has ranged from below $30,000 to more than $40,000 before tax breaks. In the past, even GM has seemed rather resigned to lose money when the Volt first comes out, rather than expect to turn a profit.
But in a recent interview with GM-Volt.com, GM CEO Ed Whitacre revealed that GM will sell the Volt in the low $30,000 range, and they will make money off of it. Imagine that… GM making money!
OK, that was mean, and I don’t really harbor any ill-will towards the General, except I think they could have done better. GM has really pulled itself up by the bootstraps as of late though with their efforts in reducing the company size while promoting fuel efficient vehicles. The Volt is the vanguard of that effort, with a 40 mile all-electric range that is backed up by a small gas generator to alleviate “range anxiety”.
In his interview with gm-volt.com, Whitacre said “We’re not in business to lose money. We did enough of that already.”
Additionally, he revealed that the Volt “is going to sell in the low 30s,” adding, “We’ll get a margin on that.” Now he hasn’t said exactly when they’ll make a profit, and GM is clearly looking long term here. CNN has estimated that it has cost GM $750 million to develop so far, and we may never know the true cost of the car.
Whitacre also doesn’t specify whether that “low 30′s” price is before, or after, the $7,500 tax credit passed by the Feds. How much would the Volt have to cost to convince you to buy it?
Source: gm-volt | Image: GM
PDF 
About Christopher DeMorro
Without strong political incentives I don’t see how or when GM could turn a profit on the Volt at or around $30K.
In the aftermath of the Copenhagen disaster, I don’t see how consumers would buy this car or most other EV massively.
If GM is serious about making money with this car they should sell it at a higher price – around $40K – but they should be prepare to sell fewer at this price.
I am one of those who think this is not the right car for current market conditions, either not enough an EV for people concerned with the environment or too expensive for those making decisions on economics. They’ll have to find a market in between these two segments which might be slim.
That said a lot of things could change within a year on the political front. A carbon tax would help more in the long term by providing an ROI model.
Without strong political incentives I don’t see how or when GM could turn a profit on the Volt at or around $30K.
In the aftermath of the Copenhagen disaster, I don’t see how consumers would buy this car or most other EV massively.
If GM is serious about making money with this car they should sell it at a higher price – around $40K – but they should be prepare to sell fewer at this price.
I am one of those who think this is not the right car for current market conditions, either not enough an EV for people concerned with the environment or too expensive for those making decisions on economics. They’ll have to find a market in between these two segments which might be slim.
That said a lot of things could change within a year on the political front. A carbon tax would help more in the long term by providing an ROI model.
Completely disagree with you. I think the Volt is coming in at the right time, gas will hit $3.50 easily this year and there are a lot more of us concerned with getting off foreign oil than you may think which deals with national security and economics than environment.
In any case, people pay nearly $30k for a fully loaded Prius when they could have bought a Kia for $13k and got a better performing car, yet the Prius sells extremely well, why? Because people are concerned more about whats under the hood than just economics.
The Volt is the next step in the evolution, providing gas free driving for 75% of our daily commuters and enabling unlimited range with Prius type gas millage when you want to travel across the state to visit grandma or what ever. It’s truly the first EV vehicle that can perform as the primary vehicle for the family.
Completely disagree with you. I think the Volt is coming in at the right time, gas will hit $3.50 easily this year and there are a lot more of us concerned with getting off foreign oil than you may think which deals with national security and economics than environment.
In any case, people pay nearly $30k for a fully loaded Prius when they could have bought a Kia for $13k and got a better performing car, yet the Prius sells extremely well, why? Because people are concerned more about whats under the hood than just economics.
The Volt is the next step in the evolution, providing gas free driving for 75% of our daily commuters and enabling unlimited range with Prius type gas millage when you want to travel across the state to visit grandma or what ever. It’s truly the first EV vehicle that can perform as the primary vehicle for the family.
I could see the first year of the Volt sales as being good to great. The reason being that it’ll be the only semi-affordable EV on the market for a while and there will be lots of pent up demand from people who want to be the first on their block with an EV. (All this is assuming GM stays on schedule for late 2010 delivery.)
After that, I could see it flopping without some kind of gov’t incentive (beyond the $7500 credit) and/or the return of $4+/gal gas.
I could see the first year of the Volt sales as being good to great. The reason being that it’ll be the only semi-affordable EV on the market for a while and there will be lots of pent up demand from people who want to be the first on their block with an EV. (All this is assuming GM stays on schedule for late 2010 delivery.)
After that, I could see it flopping without some kind of gov’t incentive (beyond the $7500 credit) and/or the return of $4+/gal gas.
I would agree with Tim on this. Once other companies release affordable EVs, then we’ll really see how competitive the Volt is. For the moment, it is more or less the affordable option for those who want to have an EV right now.
I am pleased that they’re going to be making a profit. Losing money would just reinforce the idea that carbon footprint reduction is fundamentally an issue of environment v. economy, which I don’t believe it is – on a personal or global scale.
I would agree with Tim on this. Once other companies release affordable EVs, then we’ll really see how competitive the Volt is. For the moment, it is more or less the affordable option for those who want to have an EV right now.
I am pleased that they’re going to be making a profit. Losing money would just reinforce the idea that carbon footprint reduction is fundamentally an issue of environment v. economy, which I don’t believe it is – on a personal or global scale.
This is “projected profit” and nothing can substantiate said profit at this point. The government subsidiary of $7,500 means someone else will be paying the tab. (Can you say US Taxpayer?) What worries me most is the potential government procurement side of the Volt whereby the US Government receives the lion’s share of Volt vehicles for fleet vehicles, again, all at taxpayers’ expense for an unproven vehicle. GM is notorious for its misleading PR and its politics. I don’t see any of that changing in the near future.
This is “projected profit” and nothing can substantiate said profit at this point. The government subsidiary of $7,500 means someone else will be paying the tab. (Can you say US Taxpayer?) What worries me most is the potential government procurement side of the Volt whereby the US Government receives the lion’s share of Volt vehicles for fleet vehicles, again, all at taxpayers’ expense for an unproven vehicle. GM is notorious for its misleading PR and its politics. I don’t see any of that changing in the near future.
Fellas, the Volt is not just an EV, its EREV Extended Range Electric Vehicle. Range anxiety is a huuuuge problem for pure EV’s, the Volt eliminates this fear.
The Volt, and other Volt type vehicles really won’t be competing with pure EV’s because BEV’s can only fill in that second car need for the family. We are a long ways away from a BEV being the primary vehicle. The Volt will be able to be the primary vehicle the moment its sold. Thats a huge difference and even Toyota agrees, read this article…
http://gm-volt.com/2010/01/21/toyotas-advanced-technology-exec-admires-gms-volt/
Fellas, the Volt is not just an EV, its EREV Extended Range Electric Vehicle. Range anxiety is a huuuuge problem for pure EV’s, the Volt eliminates this fear.
The Volt, and other Volt type vehicles really won’t be competing with pure EV’s because BEV’s can only fill in that second car need for the family. We are a long ways away from a BEV being the primary vehicle. The Volt will be able to be the primary vehicle the moment its sold. Thats a huge difference and even Toyota agrees, read this article…
http://gm-volt.com/2010/01/21/toyotas-advanced-technology-exec-admires-gms-volt/
It the crap hits the fan in the middle east gas could easily soar to $5.00/gal over night. I remember Toyota dealers having a substantial mark up on Prius costs and a 6 month wait list at $4.50/gal. The time to buy a vehicle that is not locked into Petroleum completely is before it becomes a rare comodity. Visit GM-Volt.com if you want the full scoop on the Volt. If they price it below 35K before th erebate they won’t be able to keep it on the shelf.
It the crap hits the fan in the middle east gas could easily soar to $5.00/gal over night. I remember Toyota dealers having a substantial mark up on Prius costs and a 6 month wait list at $4.50/gal. The time to buy a vehicle that is not locked into Petroleum completely is before it becomes a rare comodity. Visit GM-Volt.com if you want the full scoop on the Volt. If they price it below 35K before th erebate they won’t be able to keep it on the shelf.