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Read something on AutoBlog that said it's possible GM could be losing money on the Chevy Bolt. Apparently they lost a good amount of money when they first launched the Volt prior.

They said that GM could be losing $8,000 to $9,000 based on the starting price of $37,500. Something about the government of the states it's being sold in demanding a percentage of the automakers sales.

Can anyone make sense of this for me please?
 

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Not sure why that tax is put into place, but GM may make back the loss in zero-emissions credits. If they don't hit the required credits, they'll have to buy them from other companies like Tesla and that could cost more than the $8,000 to $9,000 that a state wants.
 

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Read something on AutoBlog that said it's possible GM could be losing money on the Chevy Bolt. Apparently they lost a good amount of money when they first launched the Volt prior.

They said that GM could be losing $8,000 to $9,000 based on the starting price of $37,500. Something about the government of the states it's being sold in demanding a percentage of the automakers sales.

Can anyone make sense of this for me please?
Not sure why that tax is put into place, but GM may make back the loss in zero-emissions credits. If they don't hit the required credits, they'll have to buy them from other companies like Tesla and that could cost more than the $8,000 to $9,000 that a state wants.
It's not a tax, but a requirement that a certain percentage of the largest automakers sales be from ZEV's (Zero Emissions Vehicles). If they don't produce enough vehicles (in different categories) they either have to purchase them on the open maket (Tesla, etc) or pay a fine to the State.

Here is a good basic overview:
http://www.zevfacts.com/zev-mandate.html

The details of a very complex regulation (thru 2017):
https://www.arb.ca.gov/msprog/zevprog/zevregs/1962.1_Clean.pdf
2018 and beyond:
https://www.arb.ca.gov/msprog/zevprog/zevregs/1962.2_Clean.pdf

Here's a link to the article about GM losing $9K that is now being quoted as "fact":
https://www.bloomberg.com/news/articles/2016-11-30/gm-s-ready-to-lose-9-000-a-pop-and-chase-the-electric-car-boom

It contains no definition of "losing money" (parts & labor? tooling? R&D?) and only the following:
The Bolt’s anticipated per-sale loss of roughly $8,000 to $9,000 is an estimate based on a sticker price of $37,500, according to a person familiar with the matter.
I'm skeptical of this statement without a source or a frame of reference. We don't know if the "person familiar with the matter" works for GM and/or has access to any real information. Could even be someone biased against EV's like Bob Lutz (who has made similar claims in the past).
 

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I've always wondered when they state something like that if they are including R&D & tooling necessary to launch a new vehicle. That puts the Bolt's R&D somewhere north of $250M, based on 30K vehicles for the first year.
 

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I assume if the source is anonymous, that means they work for the manufacturer because leaked info can get them fired. A third party company who deals with numbers wouldn't be scared to name themselves.

But this is all under assumption, at least with ZEV in place dealerships will try harder to sell their EV.
 

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GM doesn't even know at this point. They don't know what the sales volume will be. It's a guess. Will they lose money in the first year? Probably. Sometimes that's necessary to get real world experience with new technology.
 

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This is going to be the beginning of another learning curve. Yea we can look at how the Chevy Volt did, but that doesn't necessarily mean the Bolt will end up the same way with the same results. Two different vehicles will have two different outcomes. If you want to make speculation, that's fine. It IS a possibility that they'll lose X amount of dollars in the first year, but it's also a possibility that they won't. How many pre-orders do they have ?
 
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