Just how much of the success of the US auto industry going forward hinges on the Chevrolet Volt?
Such a prominent role has been given to the battery powered car in discussions that members of President Obama’s taskforce took the car for a spin as part of their series of meetings in Detroit last week. However, according to an administration official, the Volt shows promise but is no universal remedy for General Motors (GM) in the near-term.
The main issue with the Volt is that GM will probably have to price the vehicle at a much higher level than comparable family cars with petrol-powered engines – its price tag is rumoured to be in the region of $40,000. Therefore it may be out of reach for many consumers especially if oil prices remain low. Indeed several rivals are also rolling out partial-electric hybrids at a fraction of the cost.
Toyota has already started testing a plug-in, lithium-ion version of the Prius; Chrysler has developed several prototypes; and Ford has announced plans to release electric vehicles by 2012.
Bob Lutz, General Motors’ vice chairman, is hopeful that over time costs will come down and be as competitive as conventional cars although he admits that “right now that’s not the case”.
Meanwhile several alternative fuel vehicles are getting cheaper – Honda’s Insight LX will start at $19,800 and the BYD Auto will sell a plug-in for $22,000 when it enters the US market in 2011.
Hopes that the Volt may be a game changer for GM may be fading.
