Print 55 comment(s) - last by mindless1.. on Feb 6 at 9:34 AM

Volt will be much cheaper in the next generation  (Source: GM)
Price cut will come from smaller battery packs and economy of scale

The Chevrolet Volt is an interesting green vehicle with its ability to drive on electric power alone for short distances coupled with the ability to drive for much longer distances using a gasoline engine. The big drawback to the Volt today is the price of the vehicle.

The MSRP of the Volt is around $41,000, which is keeping some of the people that might be interested in the vehicle from biting. GM has announced that it hopes to reduce the price of the Volt by $7,500 for the next generation.

If GM were able to cut the MSRP by $7,500, when a buyer figures the federal tax rebate into the price the Volt would sell for under $30,000 making it much more appealing to most car buyers. The discount would also put the Volt more in line with the MSRP of the Nissan Leaf EV.

GM's Robert Peterson said, "As with any new technology - from plasma TVs to cell phones - the production costs lower with learnings gained with each generation. We expect to see similar cost savings, either through the development or improvement of technologies, or reduced production costs."

The discount could be achieved by taking advantage of greater economies of scale and by using a smaller battery pack that would presumably offer the same range as the battery pack in the Volt today. 

Edmunds reports that GM sold 321 Volts in January and 326 in December while the Leaf sold 87 units last month. GM plans to build 25,000 Volts this year and up to 50,000 in 2012.

The first Volt demo cars showed up at dealers this week.

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RE: It will go back up
By gamerk2 on 2/3/2011 3:22:34 PM , Rating: 0
The tax code is used to encourage certain types of behavior. Peak oil is comming, so the US is doing everything it can to get the US off of oil. If left up to the "free market", we'll be in a far worse position then we would be if the markets were moved away from oil via incentives.

RE: It will go back up
By kattanna on 2/3/2011 4:04:06 PM , Rating: 2
Peak oil is comming

LOL, thanks man. i needed a good chuckle

RE: It will go back up
By 91TTZ on 2/3/2011 4:05:01 PM , Rating: 2
When the price of oil rises, it becomes profitable to make fuel efficient cars and manufacturers sell more of them. This happened almost overnight during the 1970's oil crisis. One year you had cars that got 15 mpg, then you get the oil crisis, and a year or two later you had cars that got 30+ mpg. This was all due to the free market, since nobody would buy a gas guzzler when they thought that gas prices would be permanently high.

Of course gas prices ended up going back down, and cars got big again, until recently.

RE: It will go back up
By Dr of crap on 2/4/2011 8:49:28 AM , Rating: 2
Uh -
It didn't happen over night, and the cars they came out with-
Chevy Vega, Ford Pinto, were CRAP!

RE: It will go back up
By 91TTZ on 2/4/2011 1:03:27 PM , Rating: 2
All the cars were crap back then, even the luxury cars.

RE: It will go back up
By Nutzo on 2/4/2011 1:56:42 PM , Rating: 2
And it will be here some time in the next 50 to 100 years.

Electric cars are still too expensive and too limited for most people. When they become cost effecting, people will buy them, without the government incentives.

We will be worse off due to the government meddling in the market, because we are wasting money and running up an even large deficit. We would be much better off waiting for the free market.

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
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