GM Cutting Chevy Volt Price by $5,000

General Motors (NYSE: GM  ) will reduce the price for its plug-in hybrid Chevy Volt by $5,000, the company announced today. The sticker price for the 2014 Volt will drop almost 13%, from $39,995 for the 2013 model, to $34,995.

And the Volt's price could be reduced even further by consumers' taking advantage of federal tax credits that range as high as $7,500, depending on the buyer's tax situation. Those tax credits could take the price of the Volt down to $27,495, according to the company. Chevrolet had sold 11,643 Volts through July, up 9.2% from the same period a year ago.

"We have made great strides in reducing costs as we gain experience with electric vehicles and their components," said Don Johnson, U.S. vice president for Chevrolet sales and service.

Sales of electric vehicles are rising, but they're still only 0.2% of the U.S. auto market. Automakers have been forced to cut prices or offer discounted leases in order to move the vehicles off dealer lots. Kelley Blue Book said in a report Tuesday that the average price for battery-powered and plug-in hybrid vehicles has dropped 10% so far this year, to $36,922 from $41,102.

Although GM calls the Volt a plug-in vehicle, it also has a gasoline engine to increase the car's range from an EPA estimated 38 miles using just the power stored in its batteries, to 380 total miles after the range-extending gas engine kicks in.

The Volt gets 98 MPGe when using the electric motor only, according to GM, while the gas engine gets 35 MPG in the city and 40 MPG on the highway.

-- Material from The Associated Press was used in this report.

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  • Report this Comment On August 06, 2013, at 12:43 PM, gsned57 wrote:

    In spite of govt motors and the funding the volt got from the bush administration then from the Obama administration it ts a great car.

    Most people can drive to work and back on domestic electricity then burn oil whenever you need to go on a long trip. The cost of the car is really the only downside.

    The volt has the feel of an entry level BMW is super quiet and he handling is great thanks to all that low battery mass. Acceleration is descent and having max torque 100% of the time makes it feel sporty.

    Good on gm for lowering the price and not taking out the content.

    The volt has been the highest rated customer satisfaction car by consumer reports for the past 2 years and I hope gm didn't sacrifice the ride or reliability to cut 5k out of the price.

    Compelling price and more sales is good for America. Made in USA less imported oil and supporting our domestic electric production.

  • Report this Comment On August 06, 2013, at 1:35 PM, speculawyer wrote:

    Forget Tesla and Nissan, GM just became my favorite plug-in car company. Between the $27K Chevy Spark EV and the $34,995 Chevy Volt, GM is bringing EVs to the common people.

    Want high-torque peppy EV fun for a low price? Get the Chevy Spark EV.

    Worried about range on that Chevy Spark EV? Get the Chevy Volt.

  • Report this Comment On August 06, 2013, at 2:13 PM, holymolar57 wrote:

    One question that has not been addressed by these manufacturers is - does driving style affect range? For instance, someone who is aggressive and consistently at 75-80mph on the expressway ( dont tell me that you dont, this seems to be the average speed these days) what then is the range? We just got bck from Germany and because of the "autobahn-style" of driving did NOT see one electric vehicle on the road, AND just a few hybrids(usually huddled in the far right lane with the trucks)!! I thought the EU was so green!

  • Report this Comment On August 06, 2013, at 8:25 PM, gsned57 wrote:

    To holymolar57 gm Nissan and tesla aren't shy about saying range goes down with high speed. This is why these cars are designed with a very low coefficient of drag.

    Folks on the volt forums state at 75 mph they still get around 35 miles per charge which is pretty good. What really kills range is extreme cold. Worse for Nissan that doesn't have an active thermal management system compared to gm and tesla.

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