Truemors
is reporting from
Member
NP Rank:
NP Rank:
GM: We'll Lose Our Shirts on the Volt, But That's OK
Share: 
by ryan | March 20, 2008 at 03:25 pm
718 views | 0 Recommendations | 8 comments
Videos
Photos
The Chevrolet Volt might just prove to be the game-changing car its supporters say it is, but General Motors expects to lose money on the car "for years," said Vice Chairman Bob Lutz.
Maximum Bob's frank admission isn't terribly surprising given the resources GM is pouring into the Volt and the expense of the technology behind the range-extended EV, but you've got to admire his honesty.
"We won't make a dime on this car for years, and the board is OK with that," he told a group of Volt enthusiasts at the New York International Auto Show, according to the Detroit News.
As for the car itself, Lutz says it's still on pace for a late 2010 launch. Battery testing is going well, he said during a meeting with reporters, and the competition to supply the batteries is "a horse race" that will run "a little longer."
And why is GM prepared to lose its shirt?
Lutz said GM screwed up by ceding the hybrid market to Toyota even though it had largely mastered EV technology in the 1960s. The General won't make that mistake again, he said, even if it means subsidizing the Volt until it's firmly established. That's a noteworthy about-face, because according to Lutz, GM dropped the ball on hybrids because it believed it would lose $250 million a year selling them. Toyota, on the other hand, decided that short-term losses on the Prius would pay huge dividends once it caught on.
GM clearly hopes the same strategy will work with the Volt and put the company at the forefront of automotive technology. There's no question GM hopes to leapfrog Toyota and claim the green mantle -- a point Lutz stressed in an interview with Wired.com not long ago.
Advertisement
NowPublic on Facebook
What is NowPublic?
NowPublic lets people work together to cover news events around the world.
Crowd Power
These members have powered this story:
Khaz
Edison, New Jersey, United States
ryan
Vancouver, Canadascofire
Lubbock, Texas, United StatesJeniJen737
Miami, Florida, United Stateselectrofreeze
San Francisco, California, United Statestuffdante
CanadaV Taitano
San Jose, California, United Statese2of4
Grand Blanc, Michigan, United Statesmikepj
Mount Pleasant, Michigan, United Statesvicbel
Gaithersburg, Maryland, United Statesmmforan1
Lansing, Michigan, United StatesJ_duber
Gaithersburg, Maryland, United Statesdavid.stingray
Leesburg, Virginia, United StatesDurwoood
Toledo, Ohio, United Statesford302_91
Falls Church, Virginia, United Statespatrick_r
Germantown, Maryland, United StatesKinmar
Bloomington, Indiana, United Statesbrightvette09
Frankenmuth, Michigan, United Statesc.a.muller
Kalamazoo, Michigan, United Statesjoeolas
Indianapolis, Indiana, United Statesuttarabodhi
San Francisco, California, United Statesripismoney
Flint, MI, Michigan, United Stateselecrzy
Milpitas, California, United States
Most RecentMost Recommended Comments (8)
at 16:35 on March 20th, 2008
The Volt and the E-Flex system are huge keystones for the future of GM. Though the car may not appear as sleek or affordable in the production version, the Volt is a car I have been looking forward to ever since the concept first arrived.
at 18:23 on March 20th, 2008
I have a feeling this is going to be another smokescreen. They've already started with the excuses. I will not be looking to GM to lead the electric car revolution. That's for sure.
vicbel has contributed a photo to this story.
at 18:04 on March 20th, 2008
Hey guys: don't forget that Toyota was losing about $20k on each Prius they sold for (Sorry, I don't remember how long ago that was - it took a while, though.)
They have all kinds of reports on the consequences of using different technologies in different places - like some kinds of paint don't work in Canada but they work fine in Mexico because of the weather differences. The problem is that they have no such reports for the new technology that they introduce. They need to pour the money into it, pay to repair and replace whatever gets sent back, pay the law suits associated with big mistakes, etc.
They still make the same kinds of investments in gas cars - but they don't lose money on those investments because they have a better idea of how things will turn out.
Incidentally: Fire departments reported that they, too, were forced into new situations when they responded to the first electric car and truck emergencies. The fire crews were not trained to deal with the power issues - not just the electricity from the batteries but also the acid, the weight, etc.
It's a bridge we're all going to have to cross; it seems we're moving along.
--Sam.
at 21:06 on March 20th, 2008
Thanks for the great perspective on this issue.
Obviously, when a totally new product is launched it takes some time to re-coop the initial development costs but those are one time costs and the rest is pure profit...hopefully at least.
at 18:32 on March 20th, 2008
Afraid of losing $230M a year? Don't they hope to just lose $230M these days?
at 20:38 on March 20th, 2008
Chevy Volt Concept. It's almost all electric!
elecrzy has contributed a photo to this story.
at 07:12 on March 21st, 2008
Plug it into 120V outlet! The classic lines of this car really drew a crowd at the 2008 Detroit Auto Show.
e2of4 has contributed a photo to this story.
at 06:56 on March 22nd, 2008
We were visiting California for the first time and this ad really caught our eye. It's cropped out of the photo, but it has "an electric cord" plugged into an oversized outlet.
JeniJen737 has contributed a photo to this story.