GM Offers $10,000 Discount to Boost Volt Sales
In an effort to spur on sales of its Volt, General Motors (GM) is now offering a full 25 percent discount on every one of the electric cars that sells in the United States.
Priced at $39,995, the Volt has seen sales pick up as of late, with a monthly record achieved by GM in August. With the thinking that Americans are willing to make their entrance into the electric vehicle market when prices allow for it, the company is banking on this latest discount to increase both the sales and popularity of their flagship electric vehicle. (See also: Will Range Anxiety Impact Electric Car Sales?)
The new discount comes in the form of low-interest financing and subsidized leases, leading to lease agreements requiring a monthly payment as low as $250.
With electric vehicles still accounting for only about 3.5 percent of American vehicles, the Volt and its competitors still have a long way to go in penetrating the market. With GM already losing thousands of dollars on every Volt they sell, the company wants this latest move to be seen as an effort to spread the word about a quality vehicle as opposed to a last ditch effort to sell a car unwanted by the public at large.
“We’re trying to create a market for a brand-new technology,” said GM spokesman Jim Cain. (See also: CBO: Electric Cars Will Flop, Despite $7.5 Billion in Subsidies)
The 2012 version of the Volt is EPA-rated for 35 miles on its batteries and electric motors, while the 2013 version raises that number to 38 miles, allowing drivers to avoid using gas while providing a full charge via a standard electrical outlet for only about $1.50. Given the trend in rising fuel prices, those costs are sure to play a factor in the public’s consideration of an electric vehicle.
2015 EIA Energy Conference
June 15-16, 2015 - Washington, D.C.
Platts North American Crude Oil Summit
February 26-27, 2015 - Houston, TX