The Volt has gotten a green light for production, which is good; with a price tag of $40,000, which is bad. Worse, GM would still lose money on it, which makes one wonder if the execs had really thought out the project.
GM vice chairman Bob Lultz suggested a more “realistic” price of $48,000. If the company's losing money at 40 grand though, that is a pretty slim profit margin. This is nearly double the original concept’s price range which was at $25,000.
The Toyota Prius currently costs around $21,500, and the Honda Civic Hybrid is priced at $22,600.
GM is harboring the illusion that prospective buyers would be willing to pay more for the Volt, since it could theoretically operate without munching gas for short trips.
A difference of $20,000 is years, maybe a decade’s worth of gas for some households, especially if they’re sparing. While not quite in the same gimmick magnitude as the current Tesla, this isn’t even necessarily a better long term investment. With only a 40 mile range with its electric motor, the Volt is at most a medium range commuter car. Anything else will start tapping into the gas.
GM is seeking tax credits to offset the absurd price. That would still be at least a $10,000 difference. Almost certainly more.
Our take? The Volt could have been a decent competitor, but as it is, Toyota and Honda are still raising the bar. We'd say half the eggs in GM’s basket have followed Humpty Dumpty, but maybe it will be an instant hit for some arcane reason.
via New York Times