Reuters: Government Motors loses $49,000 on every Volt they sell.
If you think central planning and crony capitalism is bad now, just wait until Obama doesn't have to worry about re-election.
Subscribe to:
Post Comments (Atom)
-
UPDATE: Edited to remove the guy's name. I hope nobody harasses him or his employer. He was good-natured and his sign was innocuous a... -
Only the police should have guns, you know. The shocking double murder of a young couple in Irvine turns out to have been suspectedly com...
QE has permanently ruined bonds for investors
You used to earn an interest rate roughly inline with nominal GDP growth, even slightly better. Since the Fed started manipulating interest...
5 comments:
WINNING!
ReVOLTing!!
I thought a financial whiz like you would recognize that you don't allocate the $1B development costs over just the first 20,000 vehicles. Spread it out over the lifetime of the Volt plus whatever other vehicles GM spawns based on technology developed for Volt, and you've got something.
The fact that you repeat this canard without comment makes me wonder about your financial acumen.
Obviously.
But it made for a fun headline, and it provided another opportunity to discuss the Obama regime's political allocation of capital.
Obama has blown far more money on corrupt, crony capitalist deals like Solyndra than the $1 billion in the Reuters GM story.
And, in fact, while GM's cap ex per car will be much less if they sell a lot more cars, that figure excludes the billions in taxpayer subsidies. The Volt is a huge loser, and pushing the losses onto the taxpayers doesn't change that.
Even the liberal Washington Post agrees that the Volt is an epic fail for Government Motors.
Post a Comment