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