The Chevrolet Volt may have been branded too expensive to be commercially successful by the Obama administration’s taskforce, but its supporters are having none of it.
The taskforce stated that “while the Volt holds promise, it is currently projected to be much more expensive than its gasoline fuelled peers and will likely need substantial reductions in manufacturing costs in order to become commercially viable”. Around $750million is needed for near-term Volt development according to General Motors with the vehicle expected to hold a price tag of $40,000 when it is launched in 2010.
However, advocacy groups have hit back branding the task force’s assessment as short-sighted.
According to Jay Friedland, the legislative director for Plug-In America, the Toyota Prius took five years to break even but has gone on to be a wild success – he believes that any new technology like the Chevy Volt takes time to become profitable.
The California Cars Initiative believes the task force has been influenced unduly by “plug-in sceptics” at the Boston Consulting Group.
According to a post on its website, “whatever the Boston Consulting Group’s expertise on the auto industry in general, we are concerned that in its understanding of future pathways, it offers a flawed analysis and predictions based on business as usual.”
According to General Motors however, there should be no fears about the Volt’s future as vice-chairman of product development Robert Lutz states that the “Volt will survive and prosper.”
