GM Inside News Forum - View Single Post - Chevy Volt's Pricing Could Provide Sticker Shock

spykebn · 03-16-2008, 05:16 PM

GM should sell the volt at a loss the first few years as the get production (and thus economies of scale) up. GM needs to see this initially as a advertising and image builder expense not necessarily a profit building product. Keep it below $30k otherwise the mainstream public will ignore it and then it won't cast a nice glow over all other GM vehicles to them.

They have stated that they plan on building only 10,000 the first model year. So if this costs them $35k to build but they sell it for $27k they will only lose $80 million. That is a drop in the bucket for GM's advertising budget, yet it would be more effective in turning around perceptions then the entire advertisng budget.

03-16-2008, 05:16 PM	#10 (permalink)
spykebn 2.4 Liter SIDI ECOTEC Join Date: Jun 2003 Posts: 108	Re: Chevy Volt's Pricing Could Provide Sticker Shock GM should sell the volt at a loss the first few years as the get production (and thus economies of scale) up. GM needs to see this initially as a advertising and image builder expense not necessarily a profit building product. Keep it below $30k otherwise the mainstream public will ignore it and then it won't cast a nice glow over all other GM vehicles to them. They have stated that they plan on building only 10,000 the first model year. So if this costs them $35k to build but they sell it for $27k they will only lose $80 million. That is a drop in the bucket for GM's advertising budget, yet it would be more effective in turning around perceptions then the entire advertisng budget.