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Chevy Volt won't bring Cash, Profit to General Motors until 2016

By Automotive Staff | December 16, 2008
General Motors took a hammer to its piggy bank, and then sold the shards to make the Volt a reality. However, that does not mean much needed profit will flow into GM’s coffers. GM CEO Rick Wagoner noted that all told, including battery research and development, the cost of producing the Volt would exceed $750 million. That is a pretty big piggy bank. Given the high cost of R&D, the Volt cannot be expected to reach a break-even point until 2016, when the second generation will be in production. The Volt was supposed to be the harbinger of profitability for GM, but with oil prices continuing to fall, and GMs questionable ability to keep itself afloat until the end of the year, the Volt may be just another bleeding liability for the near future. Our take? At the rate things are going with Congress and the Detroit Three, twenty bucks says the Volt never sees the streets. via Lease
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2 comments
jarellano
jarellano

i don't think gm has any choice, melville. i think the company's hoping the volt turns out to be like the chrysler 300 or, even better, the prius. i wish gm the best. heaven help it, though, if there's a major disaster associated with the volt :(

xposednegatives
xposednegatives

it would be better for GM to not release it given that they won't even break even until 2016. That's about 7 years away and the Volt could fail miserably. It's too risky.

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