Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts. GM on Monday issued a statement disputing the estimates.
Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.
Grim numbers, take it from an engineer. This is not a recipe for success. With increased competition from other auto makers, it seems unlikely that there is any way for GM to grow sales out of this particular mess.
Obama likes to point to GM as a success. And maybe, by his method of accounting, it is. After all, every car produces a deficit. Just his kind of spending.