The Chevy Volt works as a car and as a green transportation solution, but as a business case it’s less sound. Helped by massive tax incentives to make the $41,000 entry price a more attractive number to consumers, GM insists demand for the car is strong, repeatedly announcing new plans to up production numbers. That, however, may not be the case moving forward.
General Motors CEO Dan Akerson commented last week that he intends to sell 25,000 Volts this year, followed by 120,000 units in 2012 – double the originally forecasted and already optimistic number.
A recent look at the auto market by the analysts at TrueCar revealed that currently no car on the market priced at over $41,000 sells at a volume that high. There is, however, one truck that fits the bill, the Ford Super Duty.
For argument’s sake, thanks to those tax incentives the Volt doesn’t cost anywhere near $41,000 currently, but that taxpayer funded reserve is set to run out once GM reaches the 200,000 mark.
In comparison, Toyota has sold just 120,000 Prius models in only three years, priced at a more modest $25,000.
[Source: Automotive News]