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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 omnicronx on 2/3/2011 5:19:09 PM , Rating: 1
Ok, so you scrap the subsidy, people don't buy them.. Now we are still completely reliant on fossil fuels in which our technology is hitting the limits on what we can do with it.

You have to look at the potential of what you are investing money in, not just its current state.

Even when you consider that it requires fossil fuels to charge the volt, its still far more efficient than any car released today, and this is technology in its infancy.

Spending a little money now could very well save you more in the long run, all the while advancing our technology..

Free market can bring innovation to a standstill if you are not careful and standards become too ingrained in society. Our reliance on fossil fuels seems like one of those examples..

Clearly I'm not trying to claim we should subsidize everything under the sun, but there are instances where it does make sense.


RE: It will go back up
By omnicronx on 2/3/2011 5:31:32 PM , Rating: 3
This Prius is also a terrible comparison when you consider all the theories that surround the Japanese government essentially subsidizing the development program. And the fact that their government was instrumental in subsidizing all eco friendly vehicles in Japan.

They subsidized the vehicle itself to consumers until a few months ago.. and low and behold the market dipped..


RE: It will go back up
By 91TTZ on 2/4/2011 12:57:44 PM , Rating: 2
quote:
Ok, so you scrap the subsidy, people don't buy them.. Now we are still completely reliant on fossil fuels in which our technology is hitting the limits on what we can do with it.


False.

The Volt is the only one that's getting subsidized, and it's not a big seller. The Prius is by far the #1 hybrid right now, and it has no subsidy.

You can't claim that people would stop buying Priuses without a subsidy when the Prius gets no subsidy.


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