New York City To Scoop Up 80 Chevrolet Bolts At A Discounted Price

DEC 5 2016 BY ERIC LOVEDAY 48

2017 Chevrolet Bolt

2017 Chevrolet Bolt

The city of New York will order 50 Chevrolet Bolts later this week and another 30 or so by June 30 of next year.

These Bolts will be put to use in three departments:

Chevrolet Bolt

Chevrolet Bolt

  • Citywide Administrative Services
  • Environmental Protection
  • Parks

A large fleet order such as this usually means a discounted price, and not surprisingly, that’s exactly how it’s going to play out.

According to Crain’s New York Business:

“The city is paying General Motors $32,997 per vehicle, but will get a federal rebate of $8,287 per car, making its actual cost $24,710, according to an Administrative Services spokeswoman.”

Crain’s notes that the price is “comparable to the $23,067 it pays for a Prius through a contract with Toyota.” However, the city of New York says that operating/maintenance costs for the Bolt will be much less than the Prius.

Crain’s adds:

“The federal offset comes courtesy of the Congestion Mitigation and Air Quality Improvement Program. The city’s fleet of 530 electric vehicles is the largest of any U.S. municipality.”

New York City will get its first Bolts sometime next Spring.

Source: Crain’s New York

Categories: Chevrolet

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48 Comments on "New York City To Scoop Up 80 Chevrolet Bolts At A Discounted Price"

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So if I can find 79 other people who want to order a Bolt, can we together get the same $33K price? (Actually I guess prices will probably be about there for 2017s when the 2018s become available, even for single purchasers.)
I wonder if NYC is opting for the $750 fast charging option.

If the vehicles are to be driven in the 5 boroughs of NYC only, then the $750 would be better spent deploying L2 charging infrastructure where the vehicles will be parked.

If you do all the work to do all the sales work with all those people, answer all their questions, handle their financing and all the title work for all those 79 customers, then yea, you could get a big price break.

But those 79 folks would only be the start. You would need to have lots of other sales, like all the other GM cars that NYC buys each year. You would need to replicate all of that traffic too. And not just one month or one year, it would need to be a steady stream of cars year after year, like what NYC buys.

That’s called being a dealership, and you would get to buy from GM at wholesale list and resell to all those other folks….

Congratulations! You’re in the automotive industry!

Good for NYC. I just hope they don’t have to wait as long as everybody who already ordered one

This may be a bit off topic, but if GM has been building and shipping these things since October, why no deliveries. My local GM dealer order a Volt for me 2 days before Thanksgiving from Detroit and I had it in my garage in Colorado on Friday. Once these things are built it shouldn’t take a month or two to deliver.

Perhaps you have not been keeping up with current events. Now that Chevy has the 200+ miles affordable ev out, they are in no hurry to actually make them.

From what we’ve read GM is kicking out about 100 Bolts a day. I’ve seen two already here in Texas so I know they exist. I expect the early production units are going to Lyft and other large fleet orders.

I factory ordered a truck from GM back in the 1990’s. It took eleven weeks to get the truck. That wait was excruciating and I said I would never factory order another vehicle after that.

We are in Texas so we will have to wait several months regardless. 😉 These Californians don’t know how good they’ve got it lol!

I prepared myself to basically buy one next summer. If I can get one sooner, it will be a pleasant surprise.

In California we know how good we have got it, that is why there are almost 40 million people here.
With Lyft, Maven and the dealers, it should not be hard to deliver 30,000 Bolts next year.

We are used to EV’s getting shipped straight off to dealerships (or directly to customers) as soon as they are built.

But that’s not how normal product launches are done in the automotive industry.

Normally a car company will build up enough units to stock ALL of their dealerships with enough that each dealership will have some stock of vehicles to sell on the first weekend. Those cars are put under quarantine at each dealership and hidden at the back of their lot.

Then the car maker has a big release event for their new car and they get a buzz going. Only after that event are the dealerships allowed to display them and show them to customers. That way the car maker can maximize their spend on promoting their new product, by having cars on lots ready to be purchased.

Depending on the number of dealerships where they are launching a new product, that might take a couple of months to build out all that stock.

If GM is actually treating the Bolt like any other new mass market product, that would be nice.

The fact that they are selling some for 33k before even trying to sell them at 37.5k tells me they are turning a profit even at 33k unlike they highly questionable unnamed source that some other sites used to say they are losing 9k on every Bolt they sell at 37.5k…

Not necessarily…GM relocated their Caddy headquarters to NYC…

They are supposed to sell them at under $36k in Norway.

The batteries are ~$10k, the rest of the car should be not more than another $10k.

They could probably sell it at $25k and make a profit it they get it up to a bit higher quantities than the ~30-50k per year expected.

Not making a profit at $37k? That is a big load of [insert manure based profanity].

“Not making a profit at $37k? That is a big load of [insert manure based profanity].”

Please tell us how you really feel! =)

You know that they are having a hot debate over there at Green Car Report on this exact topic. Maybe you can go over there and throw few flames around.

LOL!

I always find it amusing when people make Internet posts which claim one or another product “really” costs only a small fraction of the retail price. There was one rather persistent guy who kept posting to the (now defunct) TheEEStory forum, insisting that li-ion batteries only cost 10% of the retail price, because he could find small quantities on e-bay for that price. I’ve seen a few similar posts here on InsideEVs.

In fact, just above you can see Mikael’s rather, um, improbable assertion that “The batteries are ~$10k, the rest of the car should be not more than another $10k.”

Seems to be one of the milder, least destructive forms of conspiracy theories. I suppose it’s motivated by wishful thinking that someone “ought to” be able to buy something at a far lower price than the manufacturer is selling it for.

Ugh. I left GCR years ago when the trolling got outrageous. So did most of the regulars who posted solid well researched information. I’m sure they have some trolling going on over there that is out of control “debating” this fake news story.

I have no desire to see the depths of depravity the trolls have probably lowered GCR down to.

GCR I still visit, but never comment. EVObsession/CleanTechnica i’ll visit occasionally.

I stopped going to Electrek entirely… While I love Tesla’s product, I want to know about all EVs, not just Tesla. I find there are lots of toxic comments there too from all sides.

Inside EVs is the only EV site I visit and regularly comment on. It may just be exceptional moderating, but actual good discussions can occur here between people who disagree. A rare thing on the internet these days.

Appreciate the positive vibes surrounding the site…always nice to hear. Just as a word on the story in question (the GM loses 9k per Bolt Bloomberg piece): Although it would be a very ‘popular’/highly read story, when we saw the original article was completely based on a short, unqualified blurb that said, GM loses 9k per Bolt “according to a person familiar with the matter”, we decided it did not warrant highlighting, and it would be irresponsible to do so. In our opinion, it appears to just be an over-zealous comment by the author, who heard something, from some person, and wrote a story. Not disputing they heard it, but from whom and what qualification do they have is the issue. We believe there is zero % chance a GM person with that high a level of projected product P&L clearance at GM would make that statement to a Bloomberg writer (or anyone). There is quite literally maybe 3 or 4 persons in GM who would be privy to that sort of project planning, bottom line profitability forecast math ahead of the launch. It certainly wouldn’t be in the Orion assembly plant’s union newsletter. — A note on what we… Read more »

+1 and thank you. Your statement about the people in the know would never make a public statement, and those who are making public statements aren’t those who know is exactly how I see it.

Keep doin’ whatcha doin’! You made the right call on the Bloomberg report.

Thoughtful writers make thoughtful posts, attracting thoughtful readers who engage in thoughtful discussions. 😉

Thank you!

That is why I come here daily!

It is my daily read!

Thank you Jay! Inside EVs is a wonderful and trusted source for me.

Jay – you may not say it, but I will. Y’all ARE the best at what you do!

I enormously appreciate the dedication your team puts into the site, your reporting, and choosing the stories that you run. It’s quite nice to have a site where I can find in-depth, detailed information that other sites overlook in favor of “TESLA REVEALS NEW COLOR CHOICE.”

I’m a Leaf driver myself (switching to a Bolt when they come out in Texas) and I worked in the EV industry for years. Your site has been indispensable to me both personally and for my career.

Thank you.

I was saying in the Volt forums, you can manipulate statistics any way you want…If you want to take the total development and re-tooling costs into account, I’m sure you say the Bolt EV incurs a $100K loss…Yet, what if we applied that same formula to GM’s best selling vehicle, the Silverado? I’m sure you would get a similar loss and possibly more since their flagship is better funded…

Additionally, “Subaru’s New Impreza Cost $1B

I fthink the 9000$ loss is suspicious. I figure if Tesla can build a 14 kWh Powerwall, with the internal inverter, software, monitoring hardware and weatherized case and make a profit at 5500$, then GM/LG can build a 60 kWh pack with the inverter and cooling for about 15-17,000$ max. Maybe another 10,000$ for the motor and the rest of the car.

Other explanation: selling a brand new model straight into fleets at a discount is not a sign of strong demand in the car industry.

Well, remember that when they do a fleet sale it can be direct from the company. It’s only individuals like us that need to be protected from the manufacturer.

Yogurt said: “The fact that they are selling some for 33k before even trying to sell them at 37.5k tells me they are turning a profit even at 33k…” When doing fleet sales, are auto manufacturers able to sidestep local dealerships, and so “cut out the middleman”? If so, that may very well make it just as profitable to sell them that way as to sell them retail. But that aside, I am amazed at the kindergarten level of accounting that results in claims like “losing $9000 on every Bolt”, or similar nonsense. There are two very different costs involved, and even at a simplified level, they should be given as distinct values rather than being lumped together. There are development costs for cars, and there are unit costs. Once the car is actually put into production, development costs are sunk costs, and thus should not be considered when determining whether or not you’re making a profit on selling an individual car. Now of course, that’s not to say that auto makers can just handwave away development costs, and certainly development costs should be considered when an auto maker decides whether or not to green-light the production of any individual… Read more »

Yes. Fleet is direct. That’s part of the reason why rental companies get cheap cars.

Sorry, that’s not necessarily correct, but it’s certainly true that manufacturers have regional fleet representatives that can do deals on specific larger orders.

For GM, they have a special team of folks that handle their gov’t sales by region. Then the car/truck will either go directly to an upfitter or SVM for modification, or get delivered through a local dealership with whom the gov’t agency may have a service contract.

http://www.gmfleet.com/contact/government-sales-contacts.html#nav_tablay_item_c1_1

Or

Yeah that $9000 loss per vehicle rumor is pure BS. They said that about the Volt too and they had to do some serious creative accounting to come up with that figure. It’s simply FUD from some anti-EV lobby.

The price NYC pays gives us no insight at all into what the profit margin is for the product line.

If they are willing to sell at a loss, then there is no way to tell from this number where their loss may begin.

If they are selling for huge profits, we have no way of knowing from this number where those profits begin.

The only way we would know anything about cost from a gov’t contract would be if it were a “cost plus” contract, where they would be paid their costs, plus a specified amount or percent of profit.

To put numbers to my last comment.

1) If it costs GM 20K to build the Bolt and they make whale killing profits on both 33K and 37.5K prices, then the 33K doesn’t mean anything.

2) if it magically costs GM 50K to build the Bolt and they have massive losses at both 33K and 37.5K, then the 33K doesn’t mean anything.

3) Anywhere in the middle where they may or may not make a profit at either 33K or 37.5K, then 33K doesn’t mean anything.

All of this is just another way of saying that 33K doesn’t mean anything, because they can either lose or make money at any price point.

If note the big IF the $9000 figure is accurate it is likely including all the soft costs like RD, all the test vehicles, etc spreed over a small number of actual vehicles being expected to be sold. That is why they spread the RD cost over several vehicles because it cost a lot to develop a new design.

What most people don’t understand is those soft cost go down the more cars they sell. In a sense the first vehicle they sell they loss million on and each one sold after then will be slowly payback that money.

Thank you Deblasio and thank you Bloomberg too!

New York City buys almost one days worth of Chevy Bolt factory production, in one fleet sale. These fleet sales should pick up as municipalities are in the long term low vehicle maintainence cost game. Who’s next?

+1. I hope this is the first of many fleets seeing the light.

So does this mean GM is selling these for an even larger loss, or could it be they make a profit?

Why would they need to when all the California are scooping up all the Bolt that GM can make?

It’s hard to know the whole picture.
We don’t even know if they are the base model or not.

To me it means they’re selling them without the dealer’s markup.
They get some free publicity out of it.
Most probably they will cover their expenses if you factor in the ZEVs.

But to feed some the critic’s fire…

NYC is a compliance state, no?

New York is a CARB compliance State.

New York City… isn’t a State.

*mic drop*

LOL!

MMF — To answer what I think is your question, yes, GM would get ZEV credits for sales to NYC.

New York State has just over 18,000 ZEV vehicle sales (2011-16), of which only 629 were gov’t fleet sales. So right around 3%.

If the conspiracy nutters want to go hog wild on that 3%, I’m sure there is nothing to stop them. But you and I will know it is barely more than a rounding error on CARB ZEV credit sales in NY:

http://www.zevfacts.com/sales-dashboard.html

To make the critics really suffer, the statistics of gov’t fleet purchases is actually very low.

Nationally since 2011, only 4,586 ZEV credit vehicles have been sold to gov’t fleets. Meanwhile private sales total 457,863 cars. Two full order of magnitude more, truly making gov’t fleet sales a rounding error on total EV sales.

But again, that won’t stop people from claiming that nobody wants to buy EV’s, and that all the EV sales are just Obama and lefties buying cars for the gubbermint.

Yes, forgot the word “in”.

As in “NYC is IN a compliance state, no?”

Awesome news… hope that California buys 10k of them… for all the state vehicles… our highway patrol should be driving Tesla Model X P100Ds and then city and county fleets should only buy Nissan LEAF range cars… all this would help build out the charger infrastructure and we will be forgetting what gas stations are sooner.