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Bolt teardown and cost analysis: GM losing $7400 per vehicle for now

1836 Views 5 Replies 6 Participants Last post by  Barry
UBS did a complete teardown and cost analysis on the Chevrolet Bolt. The findings include that the Bolt’s electric powertrain is $4,600 cheaper to produce than it was previously estimated. UBS says that there’s “much cost reduction potential left.”

“We estimate that GM loses $7,400 in earnings before interest and tax on every Bolt sold today, mainly due to a lack of scale.”

http://insideevs.com/chevrolet-bolt-teardown-analysis-explained-video/

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If you read all the way to the end of the lengthy report, it says that Chevy is actually making money on each unit produced in terms of the actual cost of production vs. wholesale price. The estimated loss comes from allocated overhead-type expenses. But Chevy has no incentive to restrict production, because more units sold means more total profits. Even a current production levels. The article hints that scaling up will only improve profitability.
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