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By CER News Desk on Sep 25, 2012 with 6 responses

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.

  1. By Robert Marston on September 28, 2012 at 4:21 pm

    This post is utter nonsense. The car is profitable if sold above 10K after 100,000 sales. The problem with your estimate is you inflate the cost by adding in the R&D.

    These hit pieces on the Volt, a revolutionary and helpful American technology need to stop.

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    • By Mark on October 2, 2012 at 10:16 am

      That’s simply not true.  Chevy has already sold 13,500 Volts in 2012 and they’re still losing thousands on each car.  They have spent over $1 Billion on R&D so they’d have to sell 25,000 cars at $40k to recover that.  That doesn’t even take into account the production costs which are $20k-30k per car.  Even if you went conservative at $20k per car of production cost, and you assume you’re selling them at $40k (which they’re obviously not), you’d have to sell 50,000 cars just to break even.

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  2. By Leigh Christie on October 2, 2012 at 6:42 pm

    Who wrote this nonsense?

    “electric vehicles still accounting for only about 3.5 percent of American vehicles”

    wtf? way less than that. try less than 1 percent. It’s a new industry, (not including the now crushed GM EV1 and it’s piers), the first true production EV was the Leaf (volumes greater than 2,000), and then the PHEV Chevy Volt came along… and that was all about 2 years ago.  The EV industry just started, and it’s no where near 3.5 % yet. 

     

     

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  3. By Dennis Embry on November 3, 2012 at 12:52 am

    This website is listed as the “source” of the $10K discount for the Volt. Now, this is really, really odd, but there is not one really factual item of evidence that this is or was true. I have spent hours tracking this down. It’s all circular, and apparently an attempt to discredit GM and the Volt. As a Volt Owner, I can tell you that the car is fabulous. So who or what benefits by car that is so well made (see Consumers Report) and is good to drive and is returning 126 mpg for me right now?

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  4. By Martin Truther on November 27, 2012 at 1:13 am

    GM has a history of sabotaging its electric car offerings.  See the film “Who Killed the Electric Car?” for details.  I wouldn’t trust a lease unless there’s an ironclad right to buyout at the end and not be forced to surrender the car to be destroyed as was done with the EV-1 (aka impact)

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    • By TimC on November 27, 2012 at 1:46 pm

      It looks like Nissan is also sabotaging the Leaf, since sales are way behind target.  And of course A123 slyly drove themselves into bankruptcy by sabotaging Tesla. 

      It’s too bad that everyone in the EV bidness seems to be busy sabotaging their own products and everyone else’s.  That must be it.  It can’t be that the car-buying public is underwhelmed by the performance of EV technology and overwhelmed by EV costs.  The conspiracy theorists wouldn’t want to watch a film about that. 

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