I do not see the Volt as a loss leader, but I do see your point.
A loss leader, for example, as I learned in Business 101, is a product that is sold for less than it cost to purchase at wholesale in order to attract customers that may very well buy MORE items that the company DOES make a profit on. Some examples might be a grocery store that advertises milk or soda-pop for a lower price than it cost them to replace, but the average customer buys other food products the store DOES make a profit on, so in the end they make a bottom line in the black. Maybe the definition has changed over the years, as I learned this definition way back in the 80's.
Some people would site that my 2009 Chevy Cobalt is a loss leader, or at least a car sold at cost/maybe a small loss, in order to get Chevy customers.
I just do not see a supposed $40,000 car being a car to get customers to like Chevy, and in turn buying other Chevy cars that GM makes a profit on. I don't see that happening, in my humble opinion.
I think The Cruze will be great because it is based much on the proven Cobalt, and next The Volt is partially based on The Cruise. If I can get almost 46MPG out of my Cobalt (EPA 37), then The Cruise (EPA expected to be above 41MPG) should be able to come close or above 50MPG with hypermiling tips. At least, I hope it turns out that way. Not to mention The Cruze is supposed to cost around $15,000, give or take a couple thousands.... and that is well below the expected price of The Volt. I agree here.
Nevertheless, I see your point on The Volt. It's only the semantics of "Loss Leader" item that I differ with. No big deal though..
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Last edited by Jammer; 10-26-2009 at 06:15 PM..
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