GM announces Volt prices

GM price Volt at $41,000 but lease terms same as Leaf

General Motors will sell the extended-range hybrid Chevrolet Volt at a starting price of $41,000. This is $8,220 more than the all-electric Nissan Leaf, widely regarded as the Volt’s chief rival in the ultra green car stakes. The monthly lease, however, will be only $1 more than the Leaf’s. Both cars start a limited launch in November this year, rolling out progressively in 2011.

Both cars qualify for a government subsidy of $7,500.
GM is betting that drivers will prefer the Volt to the Leaf because its range is 40 miles in electric drive plus 300 miles when the battery is charged by its petrol engine. This compares to the Leaf’s range of only 100 miles on a single charge. GM says that the Volt will achieve 230 mpg, although this will be subject to revision when the car is in production.

Both companies’ research shows that the average commuter travels less than 40 miles per day so the average Volt driver will only pay for the cost of mains electricity on his daily commute. So will the Leaf driver, but the big difference, says GM, is ‘range anxiety’ – the fear of being stranded without a source of electricity if the car’s battery runs out. This is made worse by the unknown factor of driving habit. If you enjoy driving at the limit, how fast does your battery run out?

GM is taking this launch very seriously. The now-retired v-p most closely associated with the project, Bob Lutz, likened the introduction of the Volt to the moon landings in their impact on the national psyche. Americans have been exposed to the Volt through a series of controlled leaks that even includes the launch advertising with an appalling jingle which must have persuaded many prospects to stick with the petrol engine. The company has set up a website manned 24/7 to answer questions and place orders. Customers will also be kept aware of their place in the queue and their expected wait. GM has stated that it expects resale values of the Volt to be higher than those of the Leaf.

GM is, however, cautious in its planned production levels. The company has revealed that it expects to build 10,000 Volts in 2011, rising to 30,000 in 2012. Compare this with the pronouncements of Carlos Ghosn, chief executive officer of the Renault-Nissan Alliance, who has stated that he expects the Alliance to sell 500,000 electric cars worldwide in 2012. Mr Ghosn is betting the company on a global uptake of his planned wide range of electric models.