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Discussion Starter · #1 ·
http://www.pontiac.com/fuelingzone/index.jsp?deepLink=solstice&brand=home&pagename=home

I found it interesting that Pontiac's website shows the Solstice as an upcoming vehicle with a number of its highlights including this one.

"Estimated Starting MSRP Around $20,000"

I know we have been debating the base MSRP a lot on here, and I have continually said that I believed GM would come in right under $20K. This certainly sounds like they worded it to leave the door open to price this car just over $20K. "Around" certainly doesn't necessarily mean "Under." Maybe this car will be $20.5K, $21K or so. Still a good deal, but they appear ready to backtrack a little on Mr. Lutz's declaration that it would sell for under $20K.
 

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Discussion Starter · #4 ·
They will get the Kappa architecture going over time. Its just taking them a little while to decide on how to approach it.

I wish I could find it on the net, and I cannot, but I saw an article in a magazine yesterday at the bookstore about the Kappa architecture, and Caddilacs interest in it. They want a miniature XLR roadster to go after high end BMW/Mercedes roadster sales, and think they can pull it off with a Kappa based roadster wearing the Art and Science design theme, and get this, a V6 engine! :thumbs It didn't indicate what V6 might be used, but I wouldn't mind a Kappa roadster with the Caddy 3.6L DOHC motor under the hood!

The $20K Solstice will be a loss leader, and probably won't last for too many years. Its more a marketing ploy to get people talking about the car, and get them onto the roads. The base car doesn't really have to make money. Still, they don't want to lose too much on each one either.
 

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Discussion Starter · #7 ·
Comparing Solstice with the Delta cars (Cobalt and Ion) are like comparing apples to oranges.

The Solstice is a ground up redesign, where as a S/C version of the Delta car is just some changes on an existing platform. Say GM spends $1 Billion dollars on the development of the Kappa platform and the Solstice, and getting the factory up and running, and on a mid life styling update and making engineering improvements. If they sell 100,000 of them over 5 years, that means the first $10,000 of profit for every car sold has already been spent. If they sell for $20,000, that means they have only $10,000 of value left in the car to pay for marketing, precious metals, parts, factory labor, other overhead, etc. Whatever is left is what they actually make on the car. That is what makes it so difficult to make money on a low volume car at that price, and is why they need other Kappa cars to defray the cost. If they have just one other Kappa car at 100K units, that alone drops the development cost for each car from $10,000 to roughly $5000 (although it will be a little higher since the second car will add to the 1 billion design cost) Yet, it won't cost anothe billion since the platform design costs will only be paid once. If they get production up to 80K combined units a year across a few Kappa cars, then the initial engineering costs will drop down to $2500+ some extra per unit. That is why Ions and Cobalts are cheap. They spread the design costs out over a couple hundred thousand units a year, so they can have low MSRP's. Yet, GM small cars have also traditionally lost money even with the low volume. That is why it will be difficult to make money on Solstice at $20K. Its not impossible, but its not easy and GM needs Kappa sales in other divisions to help.
 
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