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GM Said to Price Chevrolet Volt at About $40,000

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GM Said to Price Chevrolet Volt at About $40,000

By David Welch - Jul 26, 2010 4:52 PM CDT Mon Jul 26 21:52:25 UTC 2010

GM Said to Sell Chevrolet Volt for About $40,000

General Motors Co.'s Chevrolet Volt sits on display during an Austin Chamber of Commerce luncheon in Austin. Photographer: Ed Lallo/Bloomberg

General Motors Co., the largest U.S. automaker, plans to sell its Chevrolet Volt electric car for about $40,000, said a person familiar with the plans.

Pricing and ordering details for the car will be announced tomorrow at 12 p.m. New York time by Joel Ewanick, vice president of U.S. marketing, at a news conference in San Jose, California, GM said today on its website.

At just over $40,000, the Volt will sell for a premium over Nissan Motor Co.’s Leaf all-electric car, which is scheduled to go on sale in November for $32,780. GM is making the pitch that the Volt’s longer driving range on a single charge and tank of gasoline will make it a better buy for most drivers than Nissan’s Leaf, said Jim Hall, principal of 2953 Analytics Inc.

“It’s a duel of being ultragreen versus having better driving range,” said Hall, whose consulting firm is based in Birmingham, Michigan. “A hard-core green consumer will be willing to live with the Leaf’s range. For others, the Volt wins because there are many buyers worried about range.”

Dave Darovitz, a GM spokesman, declined to comment.

The Volt can travel 340 miles on a tank of fuel, with the first 40 in electric drive before a gasoline engine starts to recharge the battery. The Leaf uses no fuel and can travel about 100 miles on a charge.

GM wouldn’t give specific pricing for the car. Retired GM Vice Chairman Bob Lutz told talk show host David Letterman in May 2009 that the company was targeting a $40,000 sale price.

Sales Markets

The Volt will initially be sold this year in parts of Texas, New York, California and Washington, D.C. Next year, GM will build 10,000 of the cars.

The company has said the Volt will get 230 mpg. The official rating may be different than that figure, Tom Stephens, Detroit-based GM’s vice chairman of global product operations, said earlier this month.

Nissan Chief Executive Officer Carlos Ghosn has said he plans to sell 500,000 electric cars annually worldwide by 2012. Both cars will be eligible for U.S. government subsidies of $7,500.

link:

http://www.bloomberg.com/news/2010-07-26/general-motors-said-to-price-chevrolet-volt-electric-car-at-about-40-000.html

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GM determined that this was going to be relegated to a niche vehicle and therefore they need to price it high to break even.

considering the ground breaking technology i don't think high 30's was out of line. 40 grand is pushing it though. at least there will be the early adopters bunch.

but still, an Insight is 20 and change. Its a crapbox, but its hybrid at almost half the price.

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Chevrolet to release Volt price info today

BY GREG GARDNER

FREE PRESS BUSINESS WRITER

Chevrolet is to release pricing information today for its long-awaited Volt electric car, with the expectation that it will be somewhere near $40,000.

"The rumor has been that it will be somewhere between $38,000 and $42,000," said Jim Hall, an automotive product development consultant with 2953 Analytics in Birmingham. "They're losing money on the car. The worst decision would be to price it so low that demand will outstrip availability."

Consumers who buy the Volt will benefit from a $7,500 tax credit. That credit will expire after the first 200,000 Volts are sold, under current tax law, a milestone that will likely take several years to reach.

General Motors expects to produce 10,000 Volts by the end of 2011 and about 30,000 in 2012 at its Detroit-Hamtramck assembly plant.

The first salable versions of the car are to be assembled in November.

The first Volts will go on sale in southeast Michigan, Austin, Texas; and the San Francisco Bay, southern California, metropolitan New York and Washington, D.C., areas.

link:

http://www.freep.com/article/20100727/BUSINESS01/7270375/1210/Chevrolet-to-release-Volt-price-info-today

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GM TO PRICE VOLT ABOUT $40,000, EMPHASIZE LEASING

By Andrew Ganz

Later today, General Motors will announce the price of its Chevrolet Volt extended-range EV, but the bigger story will be in the lease rates it plans to offer for the car.

Given the Volt’s advanced technology, GM knows that many would-be buyers would not be willing to make a major commitment to own the car. Although GM will actually sell the Volt – unlike its last major dabble in EVs, the GM EV1 – the automaker will need to offer attractive lease rates to satisfy most buyers.

Nissan’s Leaf EV, which doesn’t feature the range-extending gasoline engine of the Volt, will retail from $32,780 prior to any federal incentives. The Japanese automaker will offer a cut-rate $349 a month lease rate the Leaf. Although analysts expect that the Volt will retail for more than the EV thanks to its more advanced technology and a higher specification level, GM will need to keep its lease rate competitive. The $7,500 federal credit that the Volt qualifies for can be deducted from lease payments.

Former GM product czar Bob Lutz said months ago that the Volt won’t likely be a profit maker for GM in its first generation and that it will need to list for closer to $40,000 than the original $30,000 target.

link:

http://www.leftlanenews.com/gm-to-price-volt-about-40000-emphasize-leasing.html

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