Chevy Volt Unlikely to Live Up to Sales Expectations
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]
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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Volt would be way better choice than Prius. Prius is too tiny, fragile and labors if just 3 average men are riding it. Last time I and two of my friends drove Prius to the stadium, the Prius was laboring and Jo was driving as though every part of the car was made of glass. We all hated the experience.
I think the author is not seeing the big picture. It is 2011, not 2001. There is a real chance gasoline will reach prices not before seen in the US. Can the author guarantee me that gas will stay under $5.00 per gallon until 2016? I didn't think so... He also underestimates the share of middle and upper middle class people (like me) who actually are willing to make a personal decision that in one fell swoop (a) helps reduce US oil dependence, (b) ends my weekly trip to the gas station, (c)curtails net carbon emissons, (d) keeps America competitive in the high-tech manufacturing & green industry game. And no, I do not work for GM, I just think these are simple facts and I am buying one.