Chevrolet Volt Will Be Profitable Soon According to CEO

GM loses money on every Chevrolet Volt that is sold, even at the starting price of $39,145. The company, recently out of bankruptcy, needed a halo car to showcase its boundary-pushing technological advancements, and getting that technology out on the streets was more important than turning a profit on each car sold. Now that will change and the Volt will turn a profit, according to GM CEO Dan Akerson.

The next generation Chevy Volt will cost $7,000 to $10,000 less than the 2013 Chevy Volt, according to Akerson’s interview with Fortune. With the $7,500 tax credit the Volt currently comes with, that would put the Volt in direct competition with the Toyota Prius.

The next Volt won’t be a watered down version designed just to sell for less money. Akerson claims that weight savings, which will result in better fuel economy, will be a major goal for the next Volt and that the battery, which weighs 400-lbs, would be a target for weight savings.

Akerson also said that he believes developments in natural gas will shape the future of the United States auto industry. "We’ve been given a gift called shale," he said. “It’s clear to me — I’m not sure the oil industry would appreciate my point of view — but it has to be done."