Lutz: GM Will Lose Money On Volt

February 23, 2010

1 Min Read
Lutz: GM Will Lose Money On Volt

General Motors vice chairman Bob Lutz recently told several news agencies that he expects GM to lose money on the Chevy Volt. He also said that hybrids and EVs won’t pass a 10% market share before 2020.

            “GM will lose money on hybrids,” Lutz said, according to the web site GM-volt.com, as well as several news agencies. “We will continue to build them – they are required by (Corporate Average Fuel Economy regulations) – and the cost will be spread across other cars.”

Lutz told the web site that his comment was aimed at conventional hybrids, pure EVs, and plug-in hybrids, such as the Chevy Volt. He also said that GM plans to build 8,000 to 10,000 Volts by the end of 2011, increasing to as many as 60,000 units per year if the market demands it.

Although Lutz is frequently depicted as a loose canon by much of the media, his comments actually mirror those of Nissan CEO Carlos Ghosn, whose company will roll out the all-electric Nissan Leaf in 2010. Ghosn predicted in November that 10% of the world’s vehicles would be powered by electricity by 2020.

“We’re not going to take the market by storm,” Ghosn said. “Electricity is going to complement oil.”

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