Re: GM CEO Speaks of an "appreciable drop in the cost" of producing the Volt by mid 2
Every time people bring up GM's stock price I need to remember to post Ford's, the darlings of the Detroit 3. $10.25 as of closing today. Off a 52 wk high of $18.97.
Yup, its just GM that is having a rocky time in the stock market.
It IS a smart statement. The $7500 tax credit gets reduced next year more than likely. There is even a chance it goes away if Congress cant get its act together in time. What happens then?
All in all, the car will probably cost the exact same when they get the costs down. He merely stated that they were on target to get the price down. How is that a bad thing? Again, damned if you do, damned if you dont.
You make some really good points, however:
Ford went from $19 to $10, after it was down to $1.50, GM went from $39 to $19 after it started at $33, and who is suggesting following Ford down the rat-hole of disparity is good for GM? Ford is down becasue they don't have the Volt, GM is down because they do?
Its very unlikely the price saving will be reflected in lower MSRP's, it will help the car become viable.
Today when GM sells a Volt and loses money, lets say its $8,000 but then consider, had they instead sold the customer a Malibu that they would have made say $4,000. Instead of an $8,000 loss, GM's loss is really $12,000.
If the tax credit gets whacked, WOW - I don't know, all bets are off, but IMHO no way it happens before 2013.
"Again, damned if you do, damned if you dont."
I think we are in 100% agreement there, face it the guys got a severe case of hoof-in-mouth disease, put a microphone in his face, ask him some questions, he starts spewing all kinds of stuff, most of which gets him in trouble.