The Chevy Bolt might be the Green Car Of the Year, but apparently it’s costing General Motors a lot of green.
GM expects to lose roughly $9,000 on every Bolt it sells, according to Bloomberg. And while that seems like a loss no business should accept, losing money on car sales is anticipated and planned for in the EV industry, and surviving such losses is made possible with help from pro-green states like California.
“California will continue to act as the ballast, as the center of gravity, for clean air and climate policies in the U.S.,” Levi Tellemann, author of “The Great Race,” a book about what the future holds for automotive technology, said via Bloomberg. “(Donald) Trump will thrust the state back into the role of clean-air crusader, and that’s a banner a lot of people in California don’t mind carrying.”
Noted for its rigid clean-air rules, California requires auto manufacturers to sell pollution-free vehicles if they want to do business in the state. Nine other states — including New York and New Jersey — have adopted the system, accounting for 30 percent of the U.S. market.
But California’s rules are going to get even tighter. According to Bloomberg, California wants EVs to account for 15.4 percent — five times the current level — of auto sales by 2025. Jerry Brown, the state’s democratic governor, recently passed a law that requires even more reductions to greenhouse emissions by 2030, a result that could compromise 40 percent of EVs, plug-in hybrids and fuel cars.
The strict regulations have made manufacturers attempt to sell as many EVs as possible. GM would reportedly have to sell 7,698 Bolts in a year to avoid fines under the Obama administration and Environmental Protection Agency’s emission regulations.
Thumbnail photo via Chevrolet