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GM hopes tax credits can reduce cost of Chevrolet Volt

 
7 1,451 views May 26, 2008

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GM hopes tax credits can reduce cost of Chevrolet Volt

GM hopes tax credits can reduce cost of Chevrolet Volt

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Despite earlier reports predicting the upcoming Chevrolet Volt plug-in hybrid vehicle would cost less than $30,000 when it arrives in November 2010, a source close to the project has now revealed that the final price tag is likely to be closer to $40,000. That figure is likely to be higher than the cost of most other hybrid vehicles on the market but GM is lobbying Congress to create a new tax credit that could potentially benefit extended-range electric vehicles like the new Volt.

People close to the project are predicting between 10,000 and 30,000 Volt sales in the first year, with volume expected to grow to around 60,000 units once people become familiar with the car and its benefits. Initial proposals for federal tax credits could knock up to $7,000 off the Volt's price, reports Automotive News.

"There haven't been any recent developments that threaten the timing," says a source familiar with the project. "To the contrary, our confidence in the lithium ion battery continues to grow. But we still have a lot of development and testing to go." The source also confirmed that without a tax credit a $30,000 price tag for the Volt was unlikely.

While the Volt may cost more than regular hybrids, its drivetrain is very different to anything currently on the market. The Volt will be powered by an electric motor running off lithium ion batteries and can travel up to 40 miles on a single charge. The only time it will use its internal combustion engine is when the batteries are close to being depleted. This means that if you drive less than 40 miles per day you will never need to visit a fuel station.
2007 Chevrolet Volt plug-in hybrid concept

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Comments (7)

  1. By james Posted: 5/27/2008 1:17am PDT

    brillant car, wish it came out sooner
     
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  2. By HECTOR Posted: 5/27/2008 5:43am PDT

    This thing is dead even before it's born.
     
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  3. By chris Posted: 5/27/2008 7:39am PDT

    dead before its even born? hector, you know if this was a japanese or euro brand making a plug in hybrid midsized sedan that can go 40 miles on electricity alone, you'd be applauding it. the camry hybrid gets barely any mpg increase considering the potential of the technology.

    if its the price that you think is a hard hit, it is a new technology and a new development from the auto industry let alone GM. this thing is going to sell out. if they make 30,000 of these things in the first year and ask 40 or even 45 for this thing, it will sell. quick too. people want to be green. at least 30,000 will.

    I don't think it's smart for the auto industry to get into the habit of asking for handouts when new technology starts to radically change the face of the automotive industry. I think the biggest problem with this car is that they didnt brand it a buick or even caddy (although caddy has this performance kick going on right now), and sell it at a huge markup to get some of that development cost back really quickly, like you see in the electronics industry. they need to take a hint from the electronics industry.. the one industry that bankrolls the most R&D for the shortest product cycles.

    brand this thing as a caddy, style it likewise, ask 60 grand for it, and make the interior and body quality comparable to other caddy's. call it the CHS. and then the next year, offer a buick variant.. call it LaVert or something (thats french for The Green), or La Viridis (latin).. and bring the price down to 50,... and then make the chevy volt in 2012.

    I think the biggest problem is that they want to ask 40k for a midsized chevy.. you could get a malibu for half of that. people who dont have a problem spending 40k on a GM product wont want to spend it at chevy, and the chevy shoppers wont want to part with 40k.

    the car is radical, and the product presentation should be radical as well.
     
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  4. By Roy Posted: 5/27/2008 12:09pm PDT

    For the last time, this car is far from radical. GM (same company) had a car that could do 75 - 150 miles on a single charge whilst hitting 0 - 60 in 8 seconds a DECADE ago. If GM had continued to develop that, they would be undercutting Toyota's Prius, not proposing a $13k surcharge.
    However, I'm fairly confident this is GM's way of posturing in front of the government to get other concessions down the line, perhaps a reduction in the CAFE regulations. Keep your eyes on the ball! GM is still going to make much more profit on the Cadillac Escalade than it will ever make losses on this vehicle.
     
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  5. By Paul Posted: 6/2/2008 2:57am PDT

    I think GM is on the right track, the American people are tired of buying foreign oil making Country that sponsor terrorist richer, our national security is at stake, I can’t wait to buy the new Chevrolet Volt, and do my part as a American and help rid our Country of foreign oil.
     
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  6. By Jack Posted: 7/6/2008 10:11am PDT

    When this Chevrolet Volt was first shown at one of the auto shows, I was impressed. It was stated that the price should be under $20,000. Later, I read it might reach $30,000. NOW, this artcle says $40,000. Yes - price is important. Yes, some people will buy this car at that price.

    I think of "Hitler's" Volswagan...the "peoples car." It gave the Germans a low priced, economical car that most Germans could afford at the time. With all the new vehicles showing up, such as the Aptera, the Air Car MDI, etc., will the Volt stand a chance at $40,000?

    It saddens me that the American companies are at a state that making a vast change takes so long. It is like making a 180 degree turn with the Queen Mary. By the time the American companies come on board with something really different at an affordable price for everyone, that "train will have left the station." As usual, a foreign car maker will beat out GM, Ford, and Chrysler. (Remember, the Big-3 laughed at the Prius when it was first introduced.) The Sleeping Giant still sleeps...sorry to be so negative.
     
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  7. By  car finance advice Posted: 2/12/2010 7:07am PST

    But Hitlers VW was very basic thats why it was cheap. With the cost of creating hybrid fuel cells still a bit expensive and not as standardise it is no surprise that the price of the car has gone up as hybrid cars yes good for the environment but still in their need developing and creating cheaper and more standardised.
     
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