Bob Lutz 'splains the real deal on Chevy Volt cost
It's called economies of scale. All cars lose money during the first few years of production because people are factoring in the cost of development, which is atleast $1 billion for an entirely new car like the Volt. Every car has to sell a certain number of units for it to be profitable, not just the Volt. These dumb asses that speculate that the Volt cost $250,000 to produce should do the same for the first few Chevy Impalas and the numbers will be the exact same. The Volt is on track to sell about 20,000 units this year, which is ___$800 million___ in REVENUE in the American market alone. Even if each Volt returns only about 10% in profit, that still means it will break even around the 8 year mark if sales hold steady. Most analysts see Volt sales increasing over the next few years as gas prices rise.