GM losing $49G on each Volt sold, according to report

[clearvision]

FOX News:

General Motors is taking a $49,000 bath on each Chevy Volt it sells, according to a report.

 

Citing data provided by consulting firm Munro & Associates, Reuters estimates that each one of the ballyhooed pug-in hybrid vehicles is currently costing upward of $89,000 to produce. With a sticker price of just less than $40,000, that makes for a sticker price disaster.

 

GM denied the estimate, calling it “grossly wrong, in part because the reporters allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program.”

 

But Sandy Munro told FoxNews.com that he stands behind the number, though he added that it was calculated based on industry standards without any specific inside information about the Volt program.

[pollyannaish]

I liked the comment on this I found this morning:

 

"I just saved the government and GM $49,000 by not buying a Volt!)

 

The next guy said:

 

"Well I just saved them 98K by not buying two!"