GM Volt Pricing Demonstrates Viability of Electrification
Posted July 27, 2010 at 10:45 am 
Filed in: General Motors today announced the pricing of the eagerly-anticipated Chevy Volt. Once federal tax rebates are taken into account, the Volt will cost approximately $33,500. The Volt—a plug-in hybrid with a 40-mile electric-only range complemented by a 300-mile range gasoline tank—will be available for sale in selected regions by the end of the year.
After the announcement earlier this year of pricing for the Nissan LEAF—which will be even less expensive than the Volt—it is becoming increasingly clear that electric vehicles are no longer toys for the rich. And that does not take into account fuel cost savings over the life of the vehicle, which are significant. In short, electric vehicles represent a value proposition that will appeal to many American families.
That does not mean, however, that there are not ways to make these vehicles even more appealing to the typical consumer. First of all, there is still plenty of room for prices to drop as production of components—especially batteries—ramps up. Second, electric vehicles cannot operate without infrastructure to support them. A network of charging stations, both public and private, is critical.
Limited, targeted incentives will help overcome some of these hurdles—if Congress acts. Right now, it is unclear where energy policy is going in Washington, or indeed, even if there will be an energy bill of any significance this year. But the first steps are already being taken outside of the Washington Beltway. Battery and automakers are ramping up across the country, reopening idle plants and hiring workers. It will not take much at this point to truly open the floodgates to this new industry. The question is whether Washington will even try.
Previous Post
February 3, 2012
January 29, 2012
January 26, 2012
