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Captain Hybrid

GM Chops $5,000 From Chevy Volt Price

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Cabe Atwell
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Re: Really it does not matter if they make money, Are we preparing for bailout II
Cabe Atwell   8/27/2013 2:03:40 PM
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I agree with patb2009 in that costs for EV automobiles are on the decline. As lithium-ion batteries become more efficient (or replaced) production costs will indeed decline making the vehicles more affordable. It's the time frame in which that happens is the problem.

Charles Murray
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Re: Really it does not matter if they make money, Are we preparing for bailout II
Charles Murray   8/9/2013 4:01:17 PM
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I see your point, GTOlover. I don't claim to know whether the cost of the parts exceeds the sale cost of the Volt, but if that is the case, GM would be digging themselves an awful hole. Regarding your comment about better technology ultimately competing with the Volt: I'd be curious to see how the Chevy Cruze Diesel would stand up against the Volt without the subsidies. At 42 mpg and $26K, I would expect it to do well.   

patb2009
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Re: Price of doing business?
patb2009   8/9/2013 11:54:32 AM
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lipstick on the pig has always meant "Lets dress up an ugly situation",

but, i'm not sure the Volt price cut is that.

without access to GM's internal accounting, it's hard to tell are they

spreading out the Volt program costs (With the Caddie XLR) now on

are they billing XLR for some of the lab space and battery developement costs?

 

Are they extending the program life of the Volt is it expected to sell in further out years?

Are they reducing costs on battery and motors?  Given the reduced ocsts of battery,

they may have a win there, and they opened a motor line for the spark, they may have some costs savings now there as well.

 

Essentailly this is a  12% cost savings,  but if you look at Tesla, the Roadster was a 2 seater at 114K,  the Model S is a 4 seater at 80K 5 years later,  so costs are declining.

Elizabeth M
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Re: Price of doing business?
Elizabeth M   8/9/2013 10:25:38 AM
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:) Well, I love that expression, TJ, and someone used it in a conversation with me yesterday so I thought I would pass it on. It's a great one for any situation in which someone or something is trying to be dressed up to look better when it's a bit of a lost cause (which I'm sure you can discern from the expression itself ;)). I thought it was appropriate in this situation, in which GM is trying to make the Chevy Volt prettier with the price cut, even though it's not really changing the reality of the situation. Glad I could bring some chuckles!

TJ McDermott
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Re: Price of doing business?
TJ McDermott   8/9/2013 10:22:06 AM
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Watch out for the professional writers; they know how to use the language to lethal effect.  "Lipstick on a pig", Elizabeth?  My coworkers are looking at me strangely for the strangled laugh that escaped upon reading that.

 

Elizabeth M
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Re: Price of doing business?
Elizabeth M   8/9/2013 10:14:21 AM
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Points well taken, TJ, and you guys are right. There are some serious issues that need to be addressed on the viability issue. But it seems like the industry is working on it, even if this price cut is just like putting lipstick on a pig.

GTOlover
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Re: Really it does not matter if they make money, Are we preparing for bailout II
GTOlover   8/9/2013 9:27:41 AM
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I do not think Leto is argueing the point of develoment costs. You are correct Charles in the amortization of development costs.

The point is, the actual cost of every nut and bolt put on the Volt is more than the car is being sold for. The impression is that the costs will not come down enough on these items before Chevy runs out of money (again). Even if they did drive the cost down to profitability, the other fear is a better technology will come out and the Volt is old news. At this point, only Chevy knows and given their history, we are not confident in that prospect.

On a pleasant note, at this price ($23K) I am looking to possibly purchase one. Simply for the gas mileage and the amount of driving I need to do each year! If I believe my fears, I better hurry. If Chevy does make money, good to go. Either way it is win/win.

Charles Murray
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Re: Really it does not matter if they make money, Are we preparing for bailout II
Charles Murray   8/8/2013 5:45:09 PM
I'll respectfully try this one more time and then I promise I'll stop. What I'm saying is that it's too early to look at the Volt and decide whether it's profitable based on current sales. Most new vehicle development platforms call for up-front capital costs for product development, engineering, tooling, equipment and parts. Often, those upfront costs amount to between $1 and $2 billion. The Volt's costs still need to be spread across the program's life, not its first couple of years.

patb2009
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Gold
chevy volt
patb2009   8/8/2013 5:39:33 PM
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Remember the Volt is a Chevy Cruze with an electric motor and a battery added.

 

the 18 KWH battery and the motor can't be 20K more, so as battery prices

drop the price point will drop.

 

I wish the volt had a plugs out inverter, that's my must have feature, being able to produce 30 amps at 220 V would make it utterly a no-brainer.

ttemple
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Platinum
'bout the dumbest thing I've ever heard!
ttemple   8/8/2013 4:32:36 PM
"It's an investment -- the price they pay to continue doing business."

This guy is probably on the White House economic development team.

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