Rare Sighting

Chevy Volt
Chevy Volt

Spotted on Walnut Grove near White Station, this electric Chevy Volt was the first I’ve seen in Memphis traffic. Reuters reports GM loses $49,000 on each one sold. Of course that means we the taxpayers are losing our shirts on this dud. Ouch!

One thought on “Rare Sighting”

  1. If you read the Reuters article you will see that based on the production cost estimates they collected from industry analysts GM would make anywhere from $7000 – $19000 over production costs per Volt if sold at or near list price. The losing $49000 was from them taking the R&D costs they spent developing the vehicle and averaging it over the number of Volts they had sold so far. But what that means is that with each Volt sold, the R&D cost per vehicle declines.

    Reuter’s line of reasoning is a bit like looking at a office building developer who builds a building for $10 million and rents the space for $1 million a year, and after two years you say he “lost” $8 million on the building.

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