GM Ices Kappa; Losing $10k Per Car on Solstice and Sky

Richard Chen
by Richard Chen
gm ices kappa losing 10k per car on solstice and sky

GM Inside News reports that The General has spiked the successor to the Kappa-platform cars: Pontiac Solstice, Saturn Sky, Opel GT and Daewoo G2X. GM's financial perils are well known, and the market demand for impractical rear wheel-drive roadsters in the current economic climate is not so hot (as in ice cold). A dedicated Kappa factory (without flex assembly), the lack of the Kappa platform's adaptability, the current cars' cost (labor-intensive production, and expensive hydroformed frame rails and major body parts) all contributed to last week's decision to let the cars die on the vine. And why not? GMI reports a $10k loss on each vehicle built, which puts the real cost of a Kappa between $30 – $40k. By coincidence, that's the same price range of yet another car Bob Lutz is championing. Hopefully GM's learned a lesson about low-volume production here: it's best to build on a shared platform on a shared assembly line. You know; in case that whole Li-ion battery pack thing doesn't pan out.

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  • Theodore Theodore on Sep 03, 2008

    I gripe about the top and trunk because they make the cars unlivable on a day-to-day basis. It's all well and good to talk about the purity of the sports car, but at the end of the day you have to live with the thing. The top and trunk make the Kappa twins unlivable, at least to me - which is part of the reason I'm buying a Miata.

  • Morea Morea on Sep 04, 2008

    I guess I have always assumed that cars like Miatas were "weekend cars" sort of like having a boat or a chopper. If you want to go get groceries just take the Camry...

  • Adub Adub on Sep 04, 2008

    It's official. My source at GM just informed me that the Kappas are definitely done after this model.

  • Brettsky69 Brettsky69 on Aug 28, 2012

    The Sky would have done alot more sales if they had actually advertised the car. Or if GM explained to the public how Saturn was no longer a bastard child with it's own personality. It was changed to take over from Oldsmobile and the 2008 Saturn lineup was a very attractive collection of SUV's and cars. The styling throughout the lineup was similar to the beautiful Sky design (as the Buicks are now) I bought a used Sky Redline and I've never seen a car get so much attention. It's absolutely insane. But back to my main point. Before I bought the Sky I asked everyone I knew if they knew what a Saturn Sky was. in the 3 months between deciding on the Sky and bringing one home ONLY ONE PERSON I ASKED OUT OF HUNDREDS, knew what a Saturn Sky was. ONE FREAKING PERSON. So what else could have possibly happened. You can sell a Ferrari for $20.00 but if you don't tell anyone about it, how many do you think you'll sell.