Losing the sales battle to Nissan after the Japanese automaker slashed prices on its fully electric Leaf model Chevrolet has made the bold decision to drop the price of the Volt by $5,000.
For 2014 the Volt will now start at $34,995 (including $810 in destination) and with a $7,500 federal tax credit drops to just $27,495.
“The lower price and cost savings from driving on electricity provide Volt owners an unmatched balance of technology, capability and cost of ownership,” said Don Johnson, Chevy’s US VP of sales. “The 2014 Volt will offer the same impressive list of features, but for $5,000 less.”
“We have made great strides in reducing costs as we gain experience with electric vehicles and their components,” Johnson said. “In fact, the Volt has seen an increase in battery range and the addition of creature comforts, such as a leather-wrapped steering wheel and MyLink, since its launch in 2010.”
SEE ALSO: Nissan Leaf Gets Massive Price Cut
It has been widely reported that Chevrolet is losing as much as $50,000 on each Volt sold. The true reason for the reduction in the retail price is to stay competitive with rival Nissan which is recently dropped the price of the Leaf by $6,000 for a new starting price of $28,800.
For 2014 the Volt offer 98 MPGe electric on electric power for a total of 38 miles and a 35/40 (city/highway) mpg rating.