> Chevy `Volt loses Big $ 4 GM <
#1
09-28-2012, 04:50 AM
> Chevy `Volt loses Big $ 4 GM <
GM calls report of money-losing Volt sales 'grossly wrong' Instead, the should have built a new Monte Carlo 
General Motors disputes a Reuters report that the automaker is losing $49,000 on each plug-in hybrid Volt sold. It accuses the news agency of using bad math.
September 19, 2012|By Jerry Hirsch, Los Angeles Times
Is General Motors Co. losing $49,000 on every Chevrolet Volt electric car it sells?
If so, it could be bad news for taxpayers who helped bail out GM and now own a third of an automaker that has seen its shares plunge 30% since it went public in 2010.
It could also highlight how much of a political lightning rod GM and the Volt have become since the automaker's federal bailout in 2009 and as the presidential election approaches, analysts said.
"The Volt as a brand has become politicized," said Jeremy Anwyl, vice chairman of auto information company Edmunds.com.
A Reuters report Monday said GM's $39,995 plug-in hybrid was a big money-loser. GM, though, disputed the contention, saying Reuters' research "is grossly wrong" and accusing the news agency of bad math.
The automaker said the news agency incorrectly "allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program, which is how business operates."
The car, which travels about 35 miles on electric power before a gasoline engine kicks in and extends the range an additional 300 miles, has become a political football and favorite target of "GM haters" who are angry over the federal bailout, said Thilo Koslowski, an automotive analyst at research firm Gartner Inc.
That's in part GM's fault because it made the Volt a prime example of why it deserved the federal bailout, he said. More recently, "GM alive, Bin Laden dead" has become a theme of President Obama's reelection campaign.
Plenty of vehicles besides the Volt lose money when their development costs are included in the analysis, analysts said.
Anwyl said he suspects Nissan Motor Co. is losing money on every Leaf electric vehicle it sells because of the investment in battery technology.
Even Honda Motor Co. may lose money on its conventional gasoline engine-equipped Fit because the subcompact has a small profit margin that is eaten up by the unfavorable exchange rate between the Japanese yen and the U.S. dollar, Anwyl said. All of the Fits sold in the U.S. are made in Japan.
"Toyota lost a lot of money in the beginning when it brought the Prius to the world," Koslowski said. "This is particularly true for cars with new powertrain technology like the Volt."
The Prius is now a big seller for Toyota, rivaling conventional family sedans such as Hyundai Motor Co.'s Sonata and Ford Motor Co.'s Fusion in sales. With sales likely to top 200,000 this year, the Prius has become one of the best-selling passenger cars in America.
GM has sold more than 13,000 Volts this year, about half the volume it had expected, and plans to idle the Detroit-Hamtramck assembly plant for four weeks starting later this month.
The automaker, which has spent an estimated $1 billion on the car's development, said that investment into research for battery cells, battery packs, controls, electric motors, regenerative braking and other technologies will be used in many current and future vehicles, "which will help spread costs over a much higher volume."
Although Volt sales are slow, the car is doing better than other new-technology vehicles.
Sales of the Nissan Leaf have fallen steadily since the electric vehicle's launch in late 2010. Nissan sold fewer than 700 of the vehicles in August and just a little more than 4,000 this year.
Whatever money GM is losing on the Volt has not put the company into the red.
GM earned $1.5 billion in the second quarter, and while that was down from $2.5 billion in the same period a year earlier, much of the decline was a result of the recession in Europe rather than Volt sales in the U.S.
Since the bailout, GM has logged 10 consecutive profitable quarters, something it had not accomplished in more than a decade.
Analysts say problems with its European operations are a much bigger threat to the company than whether the Volt program makes money.
Last week, Morgan Stanley analyst Adam Jonas wrote that GM's German-based Opel division has lost $16 billion over the last 12 years and that its losses over the next dozen years could be even greater.
"The unit represents the single biggest threat to GM's long-term financial health and sustainability," Jonas said, recommending that the automaker pursue divesting the Opel division.
General Motors disputes a Reuters report that the automaker is losing $49,000 on each plug-in hybrid Volt sold. It accuses the news agency of using bad math.
September 19, 2012|By Jerry Hirsch, Los Angeles Times
GM says Reuters incorrectly “allocated product development costs… (Paul Sancya, Associated…)
Is General Motors Co. losing $49,000 on every Chevrolet Volt electric car it sells?
If so, it could be bad news for taxpayers who helped bail out GM and now own a third of an automaker that has seen its shares plunge 30% since it went public in 2010.
It could also highlight how much of a political lightning rod GM and the Volt have become since the automaker's federal bailout in 2009 and as the presidential election approaches, analysts said.
"The Volt as a brand has become politicized," said Jeremy Anwyl, vice chairman of auto information company Edmunds.com.
A Reuters report Monday said GM's $39,995 plug-in hybrid was a big money-loser. GM, though, disputed the contention, saying Reuters' research "is grossly wrong" and accusing the news agency of bad math.
The automaker said the news agency incorrectly "allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program, which is how business operates."
The car, which travels about 35 miles on electric power before a gasoline engine kicks in and extends the range an additional 300 miles, has become a political football and favorite target of "GM haters" who are angry over the federal bailout, said Thilo Koslowski, an automotive analyst at research firm Gartner Inc.
That's in part GM's fault because it made the Volt a prime example of why it deserved the federal bailout, he said. More recently, "GM alive, Bin Laden dead" has become a theme of President Obama's reelection campaign.
Plenty of vehicles besides the Volt lose money when their development costs are included in the analysis, analysts said.
Anwyl said he suspects Nissan Motor Co. is losing money on every Leaf electric vehicle it sells because of the investment in battery technology.
Even Honda Motor Co. may lose money on its conventional gasoline engine-equipped Fit because the subcompact has a small profit margin that is eaten up by the unfavorable exchange rate between the Japanese yen and the U.S. dollar, Anwyl said. All of the Fits sold in the U.S. are made in Japan.
"Toyota lost a lot of money in the beginning when it brought the Prius to the world," Koslowski said. "This is particularly true for cars with new powertrain technology like the Volt."
The Prius is now a big seller for Toyota, rivaling conventional family sedans such as Hyundai Motor Co.'s Sonata and Ford Motor Co.'s Fusion in sales. With sales likely to top 200,000 this year, the Prius has become one of the best-selling passenger cars in America.
GM has sold more than 13,000 Volts this year, about half the volume it had expected, and plans to idle the Detroit-Hamtramck assembly plant for four weeks starting later this month.
The automaker, which has spent an estimated $1 billion on the car's development, said that investment into research for battery cells, battery packs, controls, electric motors, regenerative braking and other technologies will be used in many current and future vehicles, "which will help spread costs over a much higher volume."
Although Volt sales are slow, the car is doing better than other new-technology vehicles.
Sales of the Nissan Leaf have fallen steadily since the electric vehicle's launch in late 2010. Nissan sold fewer than 700 of the vehicles in August and just a little more than 4,000 this year.
Whatever money GM is losing on the Volt has not put the company into the red.
GM earned $1.5 billion in the second quarter, and while that was down from $2.5 billion in the same period a year earlier, much of the decline was a result of the recession in Europe rather than Volt sales in the U.S.
Since the bailout, GM has logged 10 consecutive profitable quarters, something it had not accomplished in more than a decade.
Analysts say problems with its European operations are a much bigger threat to the company than whether the Volt program makes money.
Last week, Morgan Stanley analyst Adam Jonas wrote that GM's German-based Opel division has lost $16 billion over the last 12 years and that its losses over the next dozen years could be even greater.
"The unit represents the single biggest threat to GM's long-term financial health and sustainability," Jonas said, recommending that the automaker pursue divesting the Opel division.
#2
09-28-2012, 04:53 AM
#8
in Upscale Midsize CarsBased on analysis of 31 reviews and test drives.
Avg. Paid:$38,056 - $38,056
MSRP:$39,145 - $39,145
Invoice:$37,579 - $37,579
MPG:35 City / 40 Hwy
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Chevrolet Volt Review
Scorecard
<TABLE style="BORDER-BOTTOM: rgb(221,221,221) 1px solid; BORDER-LEFT: rgb(221,221,221) 1px solid; BACKGROUND-COLOR: white; BORDER-SPACING: 0px; BORDER-COLLAPSE: collapse; MARGIN-BOTTOM: 5px; COLOR: rgb(34,34,34); BORDER-TOP: rgb(221,221,221) 1px solid; BORDER-RIGHT: rgb(221,221,221) 1px solid"><TBODY><TR style="FONT-SIZE: 14px; FONT-WEIGHT: bold" class=overall><TD style="PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 8px; WIDTH: 86px; PADDING-RIGHT: 8px; VERTICAL-ALIGN: top; PADDING-TOP: 5px">Overall:</TD><TD style="TEXT-ALIGN: right; PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 8px; WIDTH: auto; PADDING-RIGHT: 8px; VERTICAL-ALIGN: top; PADDING-TOP: 5px" class=score>8.3</TD></TR><TR><TD style="PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 8px; WIDTH: 94px; PADDING-RIGHT: 0px; VERTICAL-ALIGN: top; PADDING-TOP: 0px">Performance:</TD><TD style="TEXT-ALIGN: right; PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 0px; WIDTH: auto; PADDING-RIGHT: 8px; VERTICAL-ALIGN: top; PADDING-TOP: 0px" class=score>8.8</TD></TR><TR><TD style="PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 8px; WIDTH: 94px; PADDING-RIGHT: 0px; VERTICAL-ALIGN: top; PADDING-TOP: 0px">Exterior:</TD><TD style="TEXT-ALIGN: right; PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 0px; WIDTH: auto; PADDING-RIGHT: 8px; VERTICAL-ALIGN: top; PADDING-TOP: 0px" class=score>8.0</TD></TR><TR><TD style="PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 8px; WIDTH: 94px; PADDING-RIGHT: 0px; VERTICAL-ALIGN: top; PADDING-TOP: 0px">Interior:</TD><TD style="TEXT-ALIGN: right; PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 0px; WIDTH: auto; PADDING-RIGHT: 8px; VERTICAL-ALIGN: top; PADDING-TOP: 0px" class=score>6.7</TD></TR><TR><TD style="PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 8px; WIDTH: 94px; PADDING-RIGHT: 0px; VERTICAL-ALIGN: top; PADDING-TOP: 0px">Safety:</TD><TD style="TEXT-ALIGN: right; PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 0px; WIDTH: auto; PADDING-RIGHT: 8px; VERTICAL-ALIGN: top; PADDING-TOP: 0px" class=score>9.0</TD></TR><TR><TD style="PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 8px; WIDTH: 94px; PADDING-RIGHT: 0px; VERTICAL-ALIGN: top; PADDING-TOP: 0px" class=last>Reliability:</TD><TD style="TEXT-ALIGN: right; PADDING-BOTTOM: 5px; MARGIN: 0px; PADDING-LEFT: 0px; WIDTH: auto; PADDING-RIGHT: 8px; VERTICAL-ALIGN: top; PADDING-TOP: 0px" class=score>
</TD></TR></TBODY></TABLE>How we calculate scoresResearch analyzed for this review
Notable for 2013
- EV range improves to 38 miles
- Hold drive mode introduced
- High-tech powertrain
- Better handling than most hybrids
- Stellar fuel economy
- Only seats four
- Confusing interior controls
- Small trunk
Research Other Years
The 2013Chevrolet Volt ranks 8 out of 19 Upscale Midsize Cars. This ranking is based on our analysis of 31 published reviews and test drives of the Chevrolet Volt, and our analysis of reliability and safety data.
The 2013 Chevrolet Volt offers the fuel savings of an electric car along with the unlimited range of a gas engine. However, some reviewers say that it’s not enough to offset the Volt’s high price.
While more electric and plug-in hybrid cars are coming to market, reviewers agree that few of those rivals have powertrains that are as flexible as the 2013 Chevrolet Volt’s. Two electric motors are powered by the Volt’s battery pack, which drives the front wheels. When the battery is depleted (or the Volt’s Hold drive mode is engaged), a four-cylinder gas engine acts as a generator for the Volt’s electric powertrain. Fuel economy is an EPA-estimated 35/40 mpg city/highway with the gas engine, or 98 mpg-e (miles per gallon-equivalent) when the Volt is in EV mode. Despite its high-tech powertrain, many reviewers say that the Volt drives much like a regular car. While they like its composed handling, a few reviewers dislike the feel of the Volt’s regenerative brakes, which is a common complaint among hybrid cars.
Inside, the 2013 Volt features high-quality materials and tech features that help drivers monitor vehicle info like fuel economy and the battery’s charge level. Reviewers generally appreciate the quality construction of the Volt’s cabin, but also note that some of its switchgear and displays can be distracting. In particular, one test driver says that the navigation system requires some time to master. While many other cars in the segment seat five, the four-seat Volt also has a back seat that some reviewers consider cramped. Other hybrid cars also offer more cargo space.
- "The 2013 Chevy Volt provides the best all-electric range of any plug-in hybrid, plus gasoline-fueled peace of mind that all-electric competitors can't match. But it's pricey for what you get." -- Edmunds
- "Volt is a technological wonder that combines the ability to drive on electric power only, while its gas engine relieves the ‘range anxiety’ often associated with pure-electric cars. Besides that, it's dynamically capable, comfortable for four adults, and includes loads of high-tech convenience features, including pre-heating and cooling of the interior." -- Consumer Guide (2012)
- "This is without a doubt the most important new car since the advent of hybrids in the late ‘90s, and GM has nailed it. Is this the handing off of the Prius’s very illustrious torch?" -- Car and Driver (2011)
- "It's fun to drive, practical, good-looking and in a league of its own technically. The sleek compact accelerates briskly. Its handling is responsive and sporty. The interior provides plenty of space and comfort for four adults." --Detroit Free Press (2011)
The Toyota Prius Plug-in can’t travel nearly as far in EV mode, but it offers a more comfortable back seat and more than twice the cargo space that you’ll find in the Volt. Combine these attributes with the Prius Plug-in’s lower starting price and significantly better fuel economy, and the Prius Plug-in makes a compelling argument for the spot in your driveway.
While you can’t charge the Lexus ES Hybrid, it returns better fuel economy than the Volt once the battery is depleted. The ES Hybrid excels in other areas where the Volt falls short, offering an extremely spacious interior with a roomy back seat and more trunk space.
Compare the Volt, Prius Plug-in and ES Hybrid »
Details: 2013 Chevrolet Volt
The 2013 Chevrolet Volt is a four-seat plug-in hybrid vehicle with front-wheel drive. Two electric motors provide power for the 2013 Volt, while a four-cylinder gas engine acts as a generator when the Volt’s battery is depleted. Only one trim is offered. For 2013, the Volt’s EV range improves to 38 miles (a three-mile increase) and a new Hold drive mode allows drivers to conserve the Volt’s battery charge to maximize efficiency. The Volt may be eligible for a federal tax credit of up to $7,500. Since the Volt has seen few changes since it was introduced, this overview uses applicable research and reviews from 2011 and 2012, as well as the current model year.
See the full 2013 Chevrolet Volt specs »
U.S. News Scores
Volt Exterior: 8.0 (Very Good)
Reviewer opinion varies on the Volt’s looks, though some reviewers say its aerodynamic bodywork can pose a problem on the road. Edmunds writes that the Volt’s front bumper "scrapes on just about every driveway and speed bump." View Photos»
Review Last Updated: 9/5/12
#3
09-28-2012, 09:19 AM
I never thought the Volt would be a big seller right from the start. Every major city is constantly preaching that we need to conserve electricity; there's too much demand on the electrical grid, etc...
Then environmentalists, the government, and so on, tell us that to save the planet we need to start buying electric and hybrid cars? Putting even more strain on the electrical grid. I thought we didn't have enough electricity to begin with?
Then environmentalists, the government, and so on, tell us that to save the planet we need to start buying electric and hybrid cars? Putting even more strain on the electrical grid. I thought we didn't have enough electricity to begin with?
#5
09-28-2012, 12:14 PM
Monte Of The Month -- November 2012
Monte Of The Month -- June 2014
Monte Of The Month -- July 2016
#6
09-28-2012, 12:16 PM
Out of the hybrids, i like the volt best because its an american brand(certainly not american made
) and i think its the nicest looking, yes its expensive but i do believe you get a hefty tax credit.
) and i think its the nicest looking, yes its expensive but i do believe you get a hefty tax credit.
#8
09-29-2012, 09:07 AM
If you ever have to replace the battery after the warranty is up, forget it. It would be cheaper to just buy a new car.
The concern I'd have is the availability of someplace to charge the battery when you're not at home. Like vacation or at work or something. There simply aren't the available charging stations everywhere like GM (and the other companies) like to say there are. How many people or businesses are going to be willing to allow you to run up their electricity bill so you can charge up your car?
And even if they do start building charging stations, you'll have to pay for it just like a parking meter. It may not be as expensive as filling up with gas, but it won't be free either.
#10
09-29-2012, 09:50 AM
Quick lil fact it cost over $500 per wheel for a brake job on a Prius so if the Volt uses the same system than theres added expense, batteries are several thousand to replace pluse several thousand to dispose of the old ones