Filed under: Hybrids/Alternative, Etc., Green, Tech, Chevrolet, GM, Earnings/Financials
GM has spent $750 million developing the Volt
Click above for high-res gallery of the 2010 Chevy Volt
Although they're a big part of the Congressional pitch to get some federal funds, green cars aren't going to make the Detroit 3 profitable on their own any time soon. Take the Chevrolet Volt for example. When GM CEO Rick Wagoner testified that the Volt is being pushed into production for 2011, he added that, "It will not be at that point fully cost competitive." That statement might seem like the understatement of the century to some.
According to this CNN Money piece, GM has actually spent about $750 million to develop the Volt, much of that in battery research. Apparently GM recognizes the need to stay ahead of (or at least alongside) the competition in developing new technology and is willing to take the risk of spending that kind of money even in desperate times. Of course, some of that money will eventually be spread across the range when the Volt's powertrain and battery advances get shared with other GM models. Still, it's unlikely the Volt will add to rather than bring down the bottom line until a second generation model is introduced, which may not be until 2014-2016.
Gallery: 2011 Chevy Volt - Live Reveal
[Source: CNN Money]
Reader Comments (Page 1 of 3)
RLQ 6:06PM (12/10/2008)
I guess this is another reason why GM wants a bailout.
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Flashpoint 7:55PM (12/10/2008)
Lexus spent over $1.5Billion developing the first LS.
Look how that turned out :P
Flashpoint 8:00PM (12/10/2008)
I see everytime the word GM or FORD is mentioned, the blog turns into a nasty argument about whether to bail them out or not.
I don't care what the pundits say...THEY MUST BE BAILED OUT.
Besides the fact that wrapped into the Big3 is millions of jobs, a huge chunk of the countries payroll and a large amount of taxes that help Americas GDP, we must bail them out because as china and India mature, they are gonna want CARS. If we don't bail out the Big3, we cut America OUT of that market.
The whole situation has been mischategorized when they say "no one wants these cars". That's BULL. The problem is, the credit crisis. No one can get financing for these cars so they end up turning to Asian markets to get credit and the Japanese almost let them go at a loss to get you in one. after shopping with a girlfriend for an Accord 2009, I see it so clearly now.
As far as I'm concerned Ford and GM are making better cars than EVER and they are gradually getting as competitive as the German's offerings.
now chrysler on the other hand... right now they've got nothing on the drawing board and they are making me ashamed to own a 300
Sergey 11:49PM (12/10/2008)
@ Flashpoint
I didn't know it was that expensive to strip and rebuild an S-class...
Dondonel 7:39AM (12/11/2008)
Here's an idea how to make Volt profitable starting with the first generation.
Instead of selling only the plug-in Volt, build together with it a simple serial hybrid version, with an electric only range of 5 miles. Remove the extremely expensive battery pack from Volt, decrease the price with 10k, and sell a very profitable model.
SimbaDogg 8:43PM (12/11/2008)
@ sergey
seriously, what on earth would make developing a lux car as expensive as a sports car or a new "radical tech" platform. sure the ls has some very very nice and ground breaking features when it debuted back in the day, but nothing that would ever lead me to believe it would cost that much whether it were in 1989 dollars, 2009 dollars or even 2029 for that matter. Flashpoint, i would love to see that tidbit that shows the 1.5 billion, and where exactly that cash was spent (if it wasn't lost/stolen...cuz it really sounds like toyota got ripped off to me).
C Smith 6:08PM (12/10/2008)
Why did they make it look like the Prius?
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Sean 2:36AM (12/11/2008)
First of all, I think you're on crack. I don't see the Prius in it at all.
Secondly, the Prius is (close to) the most efficient aerodynamic design, which means it's the best way to get through the air which means good mpg.
Torrent 6:53PM (12/10/2008)
Oh shut up. Everybody says that even though it looks nothing like it.
Jeff 7:06PM (12/10/2008)
Well, they don't have similar styling, but they are shaped the same. This is all because of aerodynamics, it's not an attempt to rip off the shape of the Prius.
Stanton 7:08PM (12/10/2008)
Although I don't think it looks even remotely like a Prius, it's certainly true that, to optimize aerodynamic efficiency, it should look like a Prius. The Prius is the most aerodynamic design ever penned by human hands. Don't be put off by published figures showing other cars of different shapes with Cd numbers similar to or better than the Prius. Those are just lies spread by anti-truth propagandists. The dizzying achievement of the Prius' aerodynamics is celebrated, in suitably hushed and reverent tones, in aerodynamicist circles as probably the acme of human technological achievement. Fish sob in frustration, wishing they were designed like the Prius. The true reason for the 787 Dreamliner delays is not fasteners, but that Boeing engineers realized they need to make their plane look more like the Prius.
All hail the Prius!
happy_penguin 7:18PM (12/10/2008)
Pious can suck my big fat tailpipe. All hail VOLT!!
2004m3driver 7:50PM (12/10/2008)
for upwards of 30k It better look better than the plain/ugly Prius.
British_Rover 6:15PM (12/10/2008)
Bah only 750 million. Land Rover/Ford spent 1.6 billion developing the T5 platform that the LR3 and Range Rover Sport use. I think they are counting revamping the production line and tooling investment in that number as well.
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Bill 6:21PM (12/10/2008)
Didn't BMW also spend somewhere in the neighborhood of $3 Billion developing the Range Rover MKIII?
It seems like GM got quite a bit from their $750 million.
British_Rover 6:52PM (12/10/2008)
Yeah around 3 billion or so since they had to start to completely from scratch. The L322 Platform at least provided a base for some of the technology used in the T5 platform. The Mark III Range Rover was launched before I started selling Land Rovers so I didn't go to the launch training.
montoym 7:49PM (12/10/2008)
Wasn't there a story on here recently(about 3mos ago or so) about Chrysler spending $3 Billion on the Phoenix engine project?
Seems like the Volt is a relative bargain comparatively.
Hike15 10:05PM (12/10/2008)
well its not like its a new chassis and everything
its mainly the looks part, interior design, and electric drive train because the gas engine is also developed
Xcountryflyer 6:16PM (12/10/2008)
If they had only kept up battery and electric car research after KILLING the EV-1, they might not have had to start from "scratch."
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Tetrong 6:16PM (12/10/2008)
B.S.
A123 systems and LG chemical developed the battery.
Besides, this is what it costs to develop any modern vehicle-and the people who purchase one will be funding the development.
GM is the number one make in China, but they need U.S. tax dollars to survive?
Doesn't make any sense.
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