Next-Gen Chevy Volt to Cost $10,000 Less

Next-Gen Chevy Volt to Cost $10,000 Less

There’s a problem with the Chevy Volt says General Motors CEO Dan Akerson; the American automaker is losing money on every one of them. That, however, will change with the second-generation model, he says, as will the price which could drop by as much as $10,000.

Akerson make the comments speaking at Fortune magazine’s Braintrom Green conference in Laguna Niguel, CA this week. “This next generation, we think we can decrease the price on the order of $7,000 to $10,000,” he said.

SEE ALSO: 2013 Chevy Volt Review

Helping make the car profitable, a 25 percent reduction in its price should result in a significantly higher volume of sales, allowing the company to better leverage economies of scale. GM has already announced plans to expand the use of its Voltec technology to a Cadillac coupe, called the ELR.

In addition to shedding cost, the new Volt will also drop a few pounds. Akerson also commented that reducing the Volt’s weight was another key goal for the next-generation car. Likely to come through lighter electronics and more compact batteries, it’s also possible the new car will use a smaller 3-cylinder engine.

The Volt currently costs $39,145 though a federal tax incentive of $7,500 makes that much easier to swallow.

SEE ALSO: Nissan Leaf Price Cut

Plug-in rival Nissan has experienced dwindling sales of its fully-electric Leaf model and followed a similar cost-cutting path to help attract buyers. In January the Japanese automaker reduced the cost of the car by $6,000 resulting in a $28,800 asking price, which can drop to below $20,000 depending on Federal, state and local incentives.

[Source: CNN]

  • It’s funny that when you read about sales problems with the Leaf, I live in a northern suburb of Atlanta and the volume of both the Leaf and Volt are quite impressive. I virtually never go out and don’t see several on any given day.

  • Jean-Pierre Sarti

    I was very close to buy a Nissan Leaf. However the battery issue in the hot weather is scaring me off. I almost seems like these battery cars are only suited for perfect SF Bay Area type weather. Too hot or too cold and the milage drops like crazy.

  • dpskfromWA

    A $10,000 price drop would be a good start. Chevy’s biggest problem with the Volt is the Chevy Cruise Eco. A $20,000 car that gets great gas mileage at half the cost of the Volt. Yea – I know there’s a $7,500 tax credit, but a credit isn’t a rebate folks. You’re still paying out of pocket and only getting a credit on your taxes – which only helps is you owe the Feds at the end of the year. Bring the base price of the Volt down to $29,900 and sales would significantly increase above current numbers. I know it sounds like I’m knocking the Volt, but I actually think the drive train concept is fantastic. However, the average consumer isn’t ready to fork over 40 Grand for a compact car with the Chevy name on the side – it’s that simple.

  • Jorel

    They should have a buy back on the 1st generation if the price drops that much. I paid full price for mine and was not eligible for any money back incentives.

  • danwat1234

    The current Volt just has the same engine that is in the Chevy Cruze, without the turbocharger. Not special at all, not Atkinson cycle like Kia and Toyota hybrids.
    The next gen Volt at a minimum should have an Atkinson cycle 4 cylinder engine but hopefully a 3 cylinder atkinson cycle engine, that would be best. A regular 3 cylinder would work too. I believe the current engine is around 85HP. A 3 cylinder Atkinson cycle would probably be more like 60HP and a regular 3 cylinder engine would be a bit more HP but that should be enough in nearly all conditions if the user thinks ahead and put it in hold mode or mountain mode if they know they’ll be using a lot of power, like towing a small trailer or lots of cargo or a mountain or running from the police.

    Also allowing the engine to operate at peak RPMs constantly, rather than having it be quiet at stop lights, have it stay at 3,000RPM or whatever is the most efficient RPM for the situation.

  • 13 weeks is my peak time on 9 gallons of gas. I couldn’t do that on the Cruise. I heard of a few hitting the 12 month mark. That is awesome!

  • dpskfromWA

    I can buy an awful lot of gas for $20,000, even at $3.50 – $4.00 a gallon. My point is, the AVERAGE JOE doesn’t want, nor can he afford a compact Chevrolet at $40.000. A $7,500 tax credit doesn’t amount to $7,500 dollars back in your pocket at the end of the day. Once again, I’m not an anti-Volt guy – just anti-spending 40 Grand on a compact Chevy. Bob, I suggest you’re in the minority. Not a bad thing, it’s just that most people don’t care about going uber long times between filling up. As for me, I’d love to be able to skip that weekly visit to the gas station, but I’ll let the technology mature and the price come down before jumping in the ER-EV/Hybrid/EV pool.

  • ca

    guess if you are keeping gas in your car 9-12 months, now you will have to buy a gas stabilizer to add to the tank.

  • Ryan

    Your information on the tax credit is incorrect. You receive cash back based on your tax liability (how much you paid in taxes). Living in PA, I received over $13,000 back in 2012 for my volt all together.