xsited1
Agent P
I have a lot of resistance to the volt which lowers my amperage.
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Read the article! They specifically address the Reuters article. Again Reuters takes into account the $1.5 bil R&D cost! If you take the production, labor and material cost to the revenue made on each car equates to a net profit on each car!
When it comes to development, the way you do it is you figure out the net profit on each vehicle, then determine how many vehicles you have to hit to reach "break even" This pays back the investment in R&D on the product. After that each vehicle sold is truly "profitable"
The same model is used for video games. You need to sell X number of units to pay for making the game, and after x units is reached each game is pure profit.
Video games are developed technology with a twist! The electric car is not.
Certainly! An absolutely great car --- IF you don't mind driving a car where the electrical system and or battery blows up and sets the car afire.
General Motors has sold approximately 21,500 Volts since the gasoline-electric hybrid was introduced in December 2010, and development costs of the high-tech car are estimated at between $1 billion and $1.2 billion by Reuters calculations.
Is that counting the $3Bill in Fed and State Development grants, loans, guarantees that GM recieved to develop an EV?
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If you don't count the costs in making our product, we'd show a huge profit
Drug companies are making tens of billions daily (if you don't include R&D)
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But the "payoff principle" remains the same. You dont start making a return on investment until the development costs are paid for.
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But the "payoff principle" remains the same. You dont start making a return on investment until the development costs are paid for.
I think that depends on the accounting practices and whether R&D costs are consolidate at a business unit level or a corporate level. I do not know which GM uses, Burt if the R&D is leveled up at a corporate level, then the Volt itself will be measured by operating cost, total revenue from Volts sold, and resulting operating profit or loss. This would exclude R&D because it would be managed at a corporate level. There would still be internal accounting to understand the company's position on how the R&D investment was spent. In other words, was Volt a better investment than the Cadillac CUE system or a new engine program. Each would have required substantial R&D, and like any good company, they would want to know where they got the most bang for the buck.
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But the "payoff principle" remains the same. You dont start making a return on investment until the development costs are paid for.
I think that depends on the accounting practices and whether R&D costs are consolidate at a business unit level or a corporate level. I do not know which GM uses, Burt if the R&D is leveled up at a corporate level, then the Volt itself will be measured by operating cost, total revenue from Volts sold, and resulting operating profit or loss. This would exclude R&D because it would be managed at a corporate level. There would still be internal accounting to understand the company's position on how the R&D investment was spent. In other words, was Volt a better investment than the Cadillac CUE system or a new engine program. Each would have required substantial R&D, and like any good company, they would want to know where they got the most bang for the buck.
But to see true profitablity you would still have to include a % of the cost of the car as paying off the R&D "investment" in the vehicle.
So if you wanted to prorate it, a portion of the "profit" would be considered payment on a loan, the loan being the principle cost of the R&D.
Seems to be a bunch of confusion here..
Seems to be a bunch of confusion here..
Oh there's no confusion. The volt is an epic fail and the lefties know it. But they have to keep the green agenda going so they just twist the numbers.
The most disingenuous thing about this is the claim that GM is "losing money" on each Volt they sell.
They're gaining money on each Volt they sell. R&D is, for the most part, a one-time cost. Each time GM sells a Volt, it'll make the total "cost" of each Volt lower. Eventually, the ratio will even itself out.
That's how the free market works.
Wow you really just made a comparison between Volt and Corvette sales.
The most disingenuous thing about this is the claim that GM is "losing money" on each Volt they sell.
They're gaining money on each Volt they sell. R&D is, for the most part, a one-time cost. Each time GM sells a Volt, it'll make the total "cost" of each Volt lower. Eventually, the ratio will even itself out.
That's how the free market works.
Only if they sell enough of them