In response to:

Chevy Volt Follows Stupid 2012 with Stupider 2013

Happy Jake Wrote: Feb 11, 2013 6:14 AM
It must be nice to receive enough governmenf funds to remain solvent even if you produce a product that can only be sold for less than half the per unit production cost. And even then not to very many people. The Chevy Volt is a perfect, real-world analogy for how Liberals view the economy: Profit is unnecessary and may even be bad. Government subsidies are desireable to ensure people stay employed. As such, it makes perfect sense to produce a product that can only be sold at a massive loss. And since government funds are clearly inexhaustible, because we can simply raise taxes on the "rich," it stands to reason that all businesses should operate that way.
LogicDesigner Wrote: Feb 11, 2013 6:28 AM
It is actually not true that they are selling for half the per-unit cost. The per-unit cost is in the $25k range and the development costs were in the $1 billion range. The calculation that the math-deficient Reuter's author used (who first made this claim) is that since about 20,000 Volts had been sold at that point, then $1 billion divided by 20,000 is $50k. So he added $50k to the per-unit cost and said that is how much GM was losing.

It was basically a ploy to grab a headline. He could have done the same calculation one week after the release of the volt and said $1 billion divided by 10 Volts equals $100 million and so it costs them $100,025,000 to make each Volt.

Deceptive math.
Richard31 Wrote: Feb 11, 2013 6:58 AM
Deceptive business math. Until you have paid off the capital investment required for a new product, you _are_ operating at a loss per unit. It's amortized over several years - and is all based on projected sales. On the internal books, honest GM accountants (assuming there are any) are definitely showing a serious loss per unit. The real number is higher than any business plan would have had - because the projections have certainly not panned out.

On the Amperas - GM gets a licensing payment, not the vehicle sale - so this does go against R & D investment, but not capital plant.
Richard31 Wrote: Feb 11, 2013 7:01 AM
I will give you that GM is probably in somewhat better shape than we might think on the recovery of R & D costs - they hold several patents that are undoubtedly licensed for other purposes, like improved batteries for consumer electronics. Without access to the actual books (and an intensive analysis of same), there is no way to realistically estimate just how much they may have amortized to date.
pepnm Wrote: Feb 11, 2013 7:04 AM
Government Motors are screwing America and you don't want to admit that.

Just 5 words would have been good for your post.
anonymous12507 Wrote: Feb 11, 2013 7:29 AM
Who signs your paycheck - Obama or GM?
Mother of 4 -- the original Wrote: Feb 11, 2013 7:29 AM
The development cost has to be paid off.

Until its paid off you haven't made a profit and ignoring the development costs is either self-deception or intentional lying.
LogicDesigner Wrote: Feb 11, 2013 8:03 AM
The development cost *does* have to be paid off.

That's why that haven't stopped selling the Volt. And that one billion dollar investment is spread over not just the Volts that have already been sold, but also over all future Volts, Amperas, Cadillac ELRs, and (to a degree) Spark EVs that will be sold in the future.

Assigning the entire development cost to the first 20,000 Volts sold is... well I wouldn't call it self-deception, more like clouded thinking.
true liberal Wrote: Feb 11, 2013 8:05 AM
In addition, they have a battery operated fire starter that they can market as well
jfoster Wrote: Feb 11, 2013 8:55 AM
Regardless! It is still a piece of garbage designed by a government committee made of of idiots. Allow the market to determine success and you will end up with a much better product that does not need a government subsidies or protection. The flaws in the engine and the batteries and the lack of any meaningful infrastructure doomed this product from the get-go. The American public may be made up of low-information voters however you attack their pocketbooks then they wake up and ask the pertinent questions. Garbage in.....garbage out!

After a year that can only be described as “stupid,” the Chevy Volt is gearing up to make 2013 even stupider still.

I know, I know.

You find it hard to believe that a mostly-owned subsidiary of the United States government and the Obama administration- like GM is- could get any stupider than say Fannie Mae, or Federal Reserve Bank.

Yes, that’s tough competition, but in the “idiocy” category GM seems to be the ruling champion.  

Not only have they lost substantial amounts of taxpayer dollars, they have managed to do it while generating record profits...