$48 000 Volt???

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I can’t really remember what they were saying last year, but a few months ago GM claimed the Volt would be more expensive than they had hoped. They mentioned $30 000. Which is a lot of money for a car competing with the Prius.

Apparently, Bob Lutz told Business Week that the Volt could actually cost $48 000 .(!!!)

That is serious money. And a huge mistake. I am not sure that being “on time” to deliver the 1st production plug-in Hybrid is worth all these price increases.

Conversation 11 comments

  1. I respect your opinion, Vince, but I disagree.

    Even at $48,000, GM will be selling the car at a loss. Until you reach serious production volumes on a car like this, it is going to be very expensive to manufacture. Early adopters will pay the premium for the car, and as the technology is developed and volumes start to increase, GM can gradually lower the price on the car.

    They can’t afford to give it away. It’s great visibility for GM, their technical capability and their commitment to leading the way on more efficient vehicles.

    And no, I don’t work for GM. Or even drive one for that matter. But they’re getting their act together lately, so maybe there’s one in my future.

  2. There are a few things that could be going on here…

    For one this could be a case of brinksmanship by Lutz and GM. I wouldn’t put it past MaxBob for one second. He is the kind of guy you don’t want to play poker with..

    The other thing is that he may be figuring the costs per unit when considering how much GM has invested in this car. I wouldn’t be surprised if Billions are going into the battery development alone. Bob has already stated that the cost of developing the radio alone was enormous because they needed a radio that operated properly with a lot less power than a normal radio does. That is just one example of what adds to the cost of this car.

    The real question is if that “Cost” is going to be passed directly onto the consumer. At one point Toyota was losing tons of money over the Prius but they were willing to do it because they believed in the future of the product. IMO that belief paid off for them. GM may be doing the same thing.

    Another thing they might be doing is preparing consumers for the possibility of leasing the battery separately from the car. That has already been brought up before. I wouldn’t be surprised if it did happen…

    One other thing to remember. GM has already alluded to their wishes to put Volt technology into cars across the company product line. That will help bring costs down,…eventually.

  3. Let me think, this is unproven technology,to be mass produced by a company that is known for above average reliability problems and a price that is smack in the middle of luxury car prices. Hmm..perfect formula for success. I can come up with more of these formulas for only a couple of million $ a year salary!

  4. Lutz has been misquoted or is playing games.
    The price target is still 30K, the time is still 2010.
    Range on pure electric is still 40 miles.

    Still have challenges.
    They are currently working on a battery module that will work from southern ariz to northern canada…….

    If Toyota builds such good cars than why did they announce a new inititive to fix their problems?
    People who think Toyotas are problem free are stuck in the 90s.

  5. At $48,000, this car will fail big time. GM will have killed it, saying no one wanted one. The Volt is beginning to look like an over priced, rushed to market, PR stunt. GM… we need real relief from the high oil prices. If you are not willing to give us an affordable solution, we will go to another company that can. I can buy a lot of gas for the additional $20,000 it would cost me to buy the Volt over the next generation of Prius. Get a clue and stop jacking the American people around before it is too late.

  6. It’s American, it has to be priced below a Prius. People are not going to perceive this to be better than a Japanese hybrid that has been on the market for 9 years now and has proven itself. Only in the last year or so GM has started to show they can make a reliable car. At $48K, I’ll pass thanks.

  7. Everybody, go rent the movie “Who Killed The Electric Car”.

    When I first heard about the Volt, I was interested. Then I saw the design. They could have made it look cooler than the Corvette, or as versatile as the HHR or Vibe.

    But they gave it styling that some will say “isn’t for everyone”, and according to me, they did that for a reason. The auto industry isn’t trying to provide an initiative toward a gas-free automotive marketplace; we know this.

    It’s just fluff. It’s like the Tesla or the Segway. Even starting at $30,000 (topping out at…what?) it looks like a toy for eco-geeks with money.

    Their #1 customers are still Police Departments, die-hard Red State Silverado truckers, and everyone who wants to compensate for…something…with their Escalade or Corvette or even Solstice.

    By 2010, Toyota will have released their plug-in hybrid. But by then, gas will already have reached $5.00 per gallon and the car market may be drying up. We have no clue of the economic conditions even one year down the road (which puts us at April 2009), and the results of the coming Presidential election, no matter who wins, will not stop the oil companies from wielding their power.

    I love my car. I drive a Subaru Legacy. But it costs $50 to fill up my tank. And my car is one of the most economical cars out there with 91 cubic feet of interior space and all-wheel drive. I average 30-32 mpg on the highway.

    I love driving. But a few thousand Chevy Volts out there will probably not reduce fuel costs for the rest of us who are pumping petrol into our four-bangers.

    In Europe, this car would be much more significant, I think…wouldn’t it?

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