GM offers big discounts to boost Volt sales
By TOM KRISHER
AP Auto Writer
General Motors rolled out the Chevrolet Volt two years ago with lofty sales goals and the promise of a new technology that someday would help end America’s dependence on oil.
So it seemed like a good thing in August when sales of the $40,000 car set a monthly record of 2,800. But a closer look shows that things aren’t what they seem for the cutting-edge car.
Sales rose mostly because of discounts of almost $10,000, or 25 percent of the Volt’s sticker price, according to figures from TrueCar.com, an auto pricing website. Other pricing services gave similar numbers, and dealers confirmed that steeply discounted Volts are selling better than a few months ago.
GM’s discounts on the Volt are more than four times the industry’s per-vehicle average, according to TrueCar estimates. Edmunds.com and J.D. Power and Associates say they’re about three times the average. Discounts include low-interest financing, cash discounts to buyers, sales bonuses to dealers, and subsidized leases.
I noted elsewhere that in the past month or two I had gone from seeing 1 Volt every month or two in my work commute to seeing a Volt about 3 times a week. Here’s the reason why, and it’s not pretty! Before planning any crowing celebrations, two reasons this news is ugly need to be kept in mind: 1.) at the undiscounted $40K price, the Volt was/is manufactured at a huge loss, which means 2.) the Volt can never repay the 100s of millions of $$s GM (actually, TAXPAYERS!) invested in the Volt. This turkey - the Volt - needs to be euthanized … put it out of the taxpayers’ cumulative misery!
I wonder why, after a year and a half in production, GM is offering such substantial discounts … could something be happening soon? Maybe in a couple of months?