Musings: They own how much of the company?

When I started up Cars and Cranks, one thing I promised myself I’d do my best to avoid is real world politics.  I have plenty of other ways to get that out of my system, I don’t need to take up any of your time arguing which color is better for us.  But this one I just couldn’t let go.

One of the news blurbs I’ve read recently has quoted Joe Biden’s current stump speach as “Osama is dead and GM is alive”.  Ya know, because President Obama issued the kill order on Bin Laden and signed the bail out paperwork for GM.  Well, I guess we are leaving out the fact that most industry analysts say GM is in for another bankruptcy in the near future.  Following that, I saw this piece today:

http://www.thetruthaboutcars.com/2012/09/your-tax-dolars-at-work-gm-loses-its-shirts-on-every-volt/#more-459675

It seems that every time GM sells another Wondervolt, they are out about $50k ($49,000 according to the article from TTAC).  I read somewhere that VDub loses a bit on every Veyron sold, but considering the volume difference between the other V car and the Veyron, I’m thinking this is a bit different.  GM’s Veep of Global Marketing says that once the volume steps up it shouldn’t be a problem.  I dunno.  I’m of the school of thought that if it costs us about eighty grand to make something and we only sell it for thirty, that is kinda sorta a BAD PRODUCT AND WE NEED TO TAKE A NEW APPROACH TO STOP SPENDING MONEY JUST TO LOSE IT.

The .gov still owns near as makes no difference a third of GM. Food for thought

4 Responses to Musings: They own how much of the company?

  1. I say let them all burn….That’s the Volt way!

  2. Cory Sell says:

    ^ This.

    ^ This.

    ^ MORE OF THIS.

  3. More food for thought. GM will be releasing Q3 results the day before election day. They are sitting on about $34b, so I’m thinking that .gov subsidies and tax credits for making an eco car are off setting some of the loss. As Steve pointed out elsewhere…the basic math comes to a $1b loss on the Volt. I get that it is more of a halo car, but so is the ‘Vette and at least they charge halo car money for those.

  4. The idea for an electric vehicle that has an engine as a range extender is pure brilliance. Leave it to GM to screw up a great idea.

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