GM losing as much as $49,000 on each Volt it builds

Article by Christian A., on September 10, 2012

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.

Promptly conveying the Chevrolet Volt's electric-powered capabilities is its sleek and performance-oriented stance. With looks similar to a sporty premium midsize sedan, the new Volt features a wheels-out stance as well as wide tracks measuring 61.2 inches (1,556 mm) on the front and 62.1 inches (1,578 mm) on the rear. Having a wheelbase measuring 105.7 inches (2,685 mm), the new Volt also features a sculpted belt line.

Bob Boniface, director of design at Chevrolet, called the Volt as a revolutionary car fitted with a sleek and dynamic design. He remarked that the new Volt is very refined and technical, boasting of interrelating surfaces as well as clean and crisp edges.

To ensure that Volt features a truly aerodynamic shape, Chevrolet’s design and engineering teams collaborated with General Motor’s aerodynamicists and placed the electric car on the wind tunnel. The aerodynamic nature of the Volt means that it needs less energy to counter air resistance, resulting an additional eight miles of electric range and 50 miles of extended range.

Thanks to various tools and technologies employed in designing the Volt, this new EV was given a rounded front fascia as well as tapered corners and grille that allow air to flow effortless around it, thereby reducing aerodynamic drag. The rear end of the Volt, meanwhile, features a new rear spoiler and sharp edges. Both the windshield and back glass feature an aggressive rake that helps reduce turbulence and aerodynamic drag.

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