The much hailed Chevy Volt – GM’s entree into the alternative vehicle segment – has hit a snag, it appears. Just recently, Ed Whitacre was quoted saying that the Volt would be priced in the low 30s, and furthermore it would be profitable for the company. Up to the point of Whitacre’s comment, the Volt’s price target had always been around $40K. So, the $30K announcement no doubt raised some eyebrows. The rumor was put to rest almost immediately, with a separate announcement from a different GM spokesman who said that Whitacre’s comment was misleading. The $40K price tag still holds, but GM is hoping for a $7,500 tax credit from the federal government to help bring the price down into the more palatable low 30s. The conflicting information certainly was not flawlessly executed PR for the Volt.
As if that isn’t bad enough, IEEE Spectrum magazine, in their annual piece on technology winners and losers, rated the Volt as one of the losers for 2010. Why? Price was a major factor – because most consumers just won’t be willing to shell out $40K for the car. A further obstacle relative to the pricing issue was highlighted in a recent study published in Energy Policy journal. According to the study, the savings on fuel costs for Volt customers will not offset the higher sticker price.
So, for now, it looks like the Volt (as great a concept as it may be) will remain in the low volume ranks along with many of the other fledgling EV companies and models.
Source: www.chevrolet.com