Although a car should bring profit to every manufacturer, it appears that GM doesn’t follow this rule as the American carmaker is actually losing as much as $49,000 on each Chevrolet Volt it builds. And the bad news continues as Chevrolet Volt lease offers are actually pushing that loss even higher.
The lease offers should bring more customers to Chevrolet showrooms, but according to Reuters, people pay just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.
As a result, GM is still years away from making any profit on the Volt. What’s more interesting is that other carmakers such as Ford, Honda and others will soon introduce Volt competitors which will bring new technologies at lower costs.
According to Dennis Virag, president of the Michigan-based Automotive Consulting Group, the Chevrolet Volt is over-engineered and over-priced. The Volt is not the only problem on the market, as Nissan, Honda and Mitsubishi are struggling to sell their electric and hybrid vehicles. We don’t know what Toyota did, but sales for the Prius are on a roll as these models have been in increasing demand.