MSM Double Negative on Volt?s Chances of Success

Volt/GM = D.O.A.
MSM Double Negative on Volt?s Chances of Success http://preview.tinyurl.com/r4xb9g
The numbers for the Chevrolet plug-in hybrid electric Volt?running costs
vs. the competition and the manufacturer?s margin?don?t add up. Never did. Right from its inception, GM was demurring on the timeline for the theoretical vehicle?s theoretical profitability. Early adopters, economy of scale, yada yada yada. Even after GM?s prearranged a $7500 tax credit with Uncle Sugar?an outrageous tilting of the playing field in the former bankrupt?s favor?the Volt remains a guaranteed, sure-fire money loser. Even if the price of gas soars, the Volt will not be an economic proposition. These facts have been largely lost on the mainstream media (MSM), whose mypoia for all things green and beautiful has blinded them to the equations that will seal its fate. And even when they do crunch the numbers, they refuse to see the light. To wit CNNMoney. Make the jump to do the math. Otherwise, GM?s headlong rush down the obfuscation highway has a new champion: ?So it?s not impossible that the Volt could become a sales success, even if the strict dollar analysis does not work out for it.?
Driving a typical 14,000 miles a year, or 38 miles a day, the Prius would use about 280 gallons of gasoline.
With gas at its current price of about $2.65 a gallon, that would come to about $742 a year in gas, or $421 more than the Volt owners would pay if they can stick with electricity.
Even if gas goes back to the record high of $4.11 and stays there, gassing up a Prius would cost about $1,150 a year, giving the Volt an $830 a year cost savings.
But a Prius costs $25,428, on average, according to sales data from Edmunds.com, while GM will probably have to spend $40,000 or more to build each Volt.
While Volt buyers will get a $7,500 tax credit that reduces the still undisclosed purchase price by that amount, the fact is that GM will have to subsidize much of the remaining $7,000 difference in cost to make it competitive with the Prius.
At current gas prices, the $421 a year savings over a period of six years that a new car is typically owned, would mean that a Volt would only be cost competitive with a Prius if was about $34,500 before the tax credit.
That means GM would have to take about a $5,500 loss on each Volt if it is to be strictly competitive.
If you assume modest sales of 20,000 Volts the first year, that would mean about $110 million in additional losses for the cash-strapped automaker.
CNNMoney http://money.cnn.com/2009/08/14/autos/volt_vs_prius/index.htm
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Whomever wrote that piece made a lot of assumptions, without getting the facts!
First off the Volt is not made to compete with the Pruis. The Pruis is a hybrid, a technology that is on the wane. GMs current hybrid, with the two motors in the tranny, is technology far more advanced than that used by Ford or Toyota.
The Volt is made on an ALL ELECTRIC CHASSES that is bigger and will be used on a variety of vehicle types by simply adding a more powerful electric motor(S.)
As to the build cost, it is far less than 40K, 40K is the MSRP target price. The BODY construction is light years ahead of anything on the market as well.
As too the 38 miles figure, referenced in the article, the Volt would not use a DROP of gas, let alone $280. The Volt can easily run more miles than 40 miles in one day on the batteries ALONE and then be recharge from a 110V source over night.
$25,428 may be the "average" price of a older Pruis, but you can bet the farm the drive home price was at least $5,000 higher. I have yet to see a 2010 Pruis with an MSRP below 28K and that is before the dealer pack.

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DUH if fuel mileage is the only thing one considers when buying a vehicle, why not go look at motor scooters? LOL

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DUH if fuel mileage is the ONLY thing one considers when buying a vehicle, the environuts will love them. LOL

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