GM to cut Chevy Volt prices for second generation

Those planning to by the next generation of Chevy Volt will be pleased to hear the car will be about 17 percent cheaper than the original, according to the GM Volt blog. The price drop will be fuelled by a higher production rates and the possibility of switching to a smaller battery more suited for use in the vehicles.

Couple the price cut with federal tax incentives and GM’s flagship electric car will cost less than $30,000 — ready to compete with not only the $32,780 Nissan Leaf EV, but conventional mid- and high-end cars too.

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

GM sold 647 Volts in the first two months of the car’s release, but hopes to triple the rate of sales between 2012 and 2015 to at least 135,000 units per year. This, they say, will cut electric-drive costs by diluting research and development investments in a larger production volume.

Plans so far are to build 25,000 Volts this year, rising to 120,000 in 2012, but the numbers fall short of the 250,000 names GM collected from those interested in the Volt.

By comparison, Nissan sold only 87 Leafs in the U.S. in January, showing GM has garnered a strong interest for the next era of electric vehicles. I think it’s safe to say we can expect more of this good news in the future.

[Edmunds]


Posted in: Uncategorized

3 Comments

  1. The proposed production rate for the Volt of 120,000 in 2012 is incorrect.  GM is looking to raise it to 65,000 if demand warrants that rate (65,000 is the maximum rate that the battery plant the Volt depends on for battery packs can make them).  Production above that rate won’t occur until Volt generation 2 after GM has built a new battery production plant.

    Unlike vehicle production plants, NiMH and Lit battery plants can’t just be throttled up as they are so expensive they are built and run at 100% capacity to reduce costs (much more similar to semiconductor factories than vehicle factories).  The battery plant for the Volt has a capacity of 65,000 Volt packs a year so that limits the Volt production numbers.  To build another plant takes several years.

  2. pjkPA says:

    The price will come down on electric cars when enough of them are on the road.
    The Chevy Volt is a high quality electric with many options that can be made optional. Too many expensive features are standard right now.
    Don’t forget you will be saving about $1,000 or more in gasoline.. that’s after you deduct the couple hundrd dollars to charge it for a year.

  3. jaytee says:

    I think current sales are limited by production rate rather than consumer interest for both the Leaf and Volt.

Leave a Comment