That also excludes costs of development though.
Defenders of the Volt have a point in saying the cost of development needs to be spread throughout the lifetime of the car but the sales numbers are just too anemic to believe the lifetime will be too much longer or it will ever actually turn a profit. GM will be halting production of the Volt for, I believe, the third time to compensate for the low sales. Development costs are a sunk cost and at some point GM will have to accept they will never recoup their investment and move on to a line they can profit from.
We have Nuclear, Hydro, wind and geothermal which are zero CO2 emission sources of electricity.
Coal power in the United States accounted for 42% of the country's electricity production in 2011. Other carbon based sources brings that up to 68%. So if everyone converted to Hydrogen fuel cell transportation, we'd see a ~32% reduction in co2 emissions.
Volt monthly sales to hit record in August - Aug. 30, 2012GM spokesman Jim Cain said the company expects the Volt's August sales to top 2,500, the best month by far since its December 2010 launch. That would mark a 35% increase over July sales and more than a 700% jump from year ago results.
The Volt is dominating the European market as the Ampera..
Green Car Congress: Opel says Ampera was EuropeIn the Netherlands, the Ampera has taken more than 77% of the passenger EV market share in May. The average year-to-date market share for the Ampera in the Netherlands was more than 50%. Based on the latest available figures, the Ampera is also the best-selling EV in Germany with a share of more than a third and Switzerland with 44%.
Steadily increasing sales can hardly be described as "anemic."
"they will never recoup their investment and move on to a line they can profit from."
The volt is Profitable with a 19% margin, perhaps as high as 40+%. The R&D cost to develop the Volt's technology will benefit more and more product lines over time. It is not solely up to the Volt to recoup that initial R&D investment, which is treated as an Overhead cost, that is Amortized below the EBITDA line on the financials. Example: GM has a 114 horsepower Chevy Spark electric car planned for a 2013 release. GM has also sold almost 5,000 Opel Amperas and Holden Volts in Europe, Australia and New Zealand, further reducing the R&D/unit sunk cost. Reuters ignored both of these in their hit piece.
You say, "Development costs are a sunk cost and at some point GM will have to accept they will never recoup their investment and move on to a line they can profit from."
This would be the worst thing GM could do, stop production of a profitable car with good margins because it's going to take a long time to recoup the money THEY ALREADY SPENT.
This discussion is less about cars then it is about politics and you're not really looking at the context of those claims. Sales have been so anemic that increases "by leaps and bounds" holds little real meaning. Any company would love to increase sales by 700% in a year but it's not quite that impressive going from 350 Volts sold to 2,500 in a record month when the cars it competes against sell more than ten times that in an average month.
40,000 Camrys were sold in May. At that pace Toyota would have sold more Camrys every two days then GM did Volts throughout the entire month in their best month ever.
This is political for Volt defenders on this board but it's business for GM. At some point they are just going to have to discontinue production of the Volt and move on to something more profitable.
And that is using $3 gas and the EPA estimate, which has shown to be so accurate in the past...
Huck huck. So no, its not economical.
“Tyranny is defined as that which is legal for the government but illegal for the citizenry.”
― Thomas Jefferson
A profit is only realized when the car is sold. They're not selling Volts in any real meaningful capacity.
5,000 Volts sold abroad in a year might sound like a real lot to you but it isn't. Toyota sold 40,000 Camrys in May alone.
This is political to you. I get that. It's business to GM.
If the number of car sales is so critical, then would you say Lamborghini is an unsuccessful, unprofitable company?
Lamborghini Sales Increase 23 Percent In 2011Its global deliveries increased by 300 units from 1,302 in 2010 up to 1,602 last year, an increase of 23 percent.