I Can Buy A Corvette for That!!!!!!

I Can Buy A Corvette for That!!!!!!
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$48,000.

That’s the price that TopSpeed.com reported, earlier today, will be the possible list for the Chevy Volt at its introduction.

That’s above the sticker for a moderately well-equipped C6 Corvette. Hell, it’s above what you’ve gotta pay for a Cadillac DTS or a V-6 CTS or STS.

About two weeks ago, when Bob Lutz was talking to the Volt acolytes at the New York Auto Show and told the assembled multitude that GM would lose money on every one of them, we put up a post suggesting that GM ought to actually give it up if it couldn’t make a profit on the thing. The basic premise was that GM was reinventing the Corvair. The post was sufficiently brazen to suggest that Lutz answer the questions posed. He, after all, choses to use the FastLane.com blog when it suits his purposes.

(more after the jump)

But, he didn’t answer. (We did get a little bit of a dissenting opinion from a p.r. guy at GM, but that’s not the same. P.R. guys are paid to get good press. Increasingly, the Volt is not good press. One can understand the frustration. But, the worst that happens is that they don’t loan me a G8 to test drive, which will be a tragedy. I’ll only write what they want written if I get a long-term test drive on a G8 ute with an LS engine. Everyone has a price, after all.)

But, I don’t just write for TopSpeed.com. I read it, too. There’s some good stuff on this site and I offer up the post earlier today pegging the price for the Volt at $48,000 as proof of my point.

Lutz says GM can’t sell this thing for $40,000 unless they’re willing to take a loss on every car.

Gosh, Bob. Two weeks ago, the price was $40,000 and GM expected to take a loss on every car. And the board was “OK with that.”

What’s the story?

When this thing was originally conceived, it was a $30,000 car.

Now it’s a fifty thousand dollar car.

If you want to lose money, do it right. Sell it for 30K. Back it with a 100,000 mile warranty and make damn sure every Chevy dealer has a lot full of them when the door opens, just like Ford did with the Mustang.

You want market share? Want to pay for it? Then do it.

Or is selling cars no longer your gig?

Was the Volt a bluff that got called?

What do you think?
Show Comments

2 comments:

  (68) posted on 04.3.2008

After spending all your time and energy Prius bashing, looks like the Volt will not come out on top. Unless they re-badge it as a Cadillac, but what would be the point?

  (4) posted on 04.2.2008

I’m actually skeptical that GM is claiming higher expected prices for the Volt deliberately. What better way to launch a vehicle than to claim that its going to cost $50k, then price it at $30k at the time of its release? GM’s going to appear as a hero when it does so, and the public will be pleasantly surprised and consider the Volt more seriously that it would have if the car was promised to be priced at, say, $28k but was released with a tag of $30k.
I mean, GM’s a global giant that employs hundreds of well qualified market experts, scientists, and PR agents. Is it really likely that they would mistakenly underestimate the production costs of a vehicle - a vehicle that’s brought GM much attention and fanfare - by over $20,000? And even if they did, wouldn’t they try to be quiet about it rather than blatantly disclose the information to the public?

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