General Motors labeled as “grossly wrong” a media report calling the Chevrolet Volt a major money-loser.
Reuters estimated that GM is losing as much as $49,000 on every Volt, but the automaker said the wire service’s calculations ignored that development costs are typically spread out among all vehicles sold over the course of the model’s lifetime.
GM has acknowledged it’s losing money on the Volt but won’t say how much. But GM argued that its investment will pay off over time as Volt sales accelerate. The car, which can travel up to 38 miles on a battery charge before a gasoline-powered generator kicks in, has missed GM’s original sales targets for 2012.