Registered: Oct 2001
09-24-12 11:05 PM
Quote from 377OHMS:
"GM is losing thousands of dollars on every Volt, raising the question of how long it can keep eating the steep losses."
As long as there are taxpayers to make up the GM losses they'll continue to deeply discount these massively flawed vehicles.
I don't think that's accurate. The R&D money is already spent, so that's what we call a bygone in economic terms. Bygones are forever bygones.
The relevant question now from a business standpoint is how much it costs them to build the damn things. I saw an estimate of something like $20-32,000 I believe it was. So they are at least covering their out of pocket expenses.
Put another way, it is a rational decision to sell them for at least marginal cost of production. It would be better to sell them for more, but if they can't, they are better off getting something out of them.