June 25, 2009
Today the much-lauded, much-criticized Chevy Volt hit the road. The Volt is an “extended range” battery vehicle that uses the battery for about 40 miles and then switches to gas. The vehicle is something new for Chevrolet, but I doubt if it will help revive Chevy from the brink of death. No, the problem I see is not the technology; I’m not an engineer, so I really can’t speak to that. It’s the price tag. I’ve read everything from about $40,000 to $45,000 and up. A few years ago, former Secretary of Labor Robert Reich gave a commentary on NPR on what he called the “$64,000 Question,” referring to the old game show as well as the words of Hank Paulson, Secretary of Treasury. You can read an abbreviated version here on Reich’s blog. In essence, Reich was pointing out that, had most Americans participated in the Bush recovery (yes, there was one, although that fact was easy for most of us to miss) as they had in past recoveries, the median family income would be about $64000 instead of the $45000 (or $41000 depending on which source you read). How does this relate to the Volt? More than half of American families make less in a year than the base cost of a Volt. A considerable number of families make at or just above the cost of the Volt in a whole year, before taxes. For whom is Chevy building the Volt? As it stands, Chevy needs to remember that the American public can afford the original Saturn S line better than it can a Volt. Anything over $40,000 is out of reach; $20,000 (like the Prius and Insight) would be much more affordable.
UPDATE, July 27, 2010
Today Chevy announced that the Volt will have a price tag of $41,000. Even with the federal tax credit, the Volt is overpriced for the average American family. The Volt would take such a huge chunk of a family income that at least half of American households shouldn’t consider it in this fragile economy. It’s too bad; Chevrolet does not seem to have learned from its mistakes of the 2000s.
Hi, firstly I want to say that I try to follow your blog. Great post, I totally agree with you. Have a good day.
Thanks! I only hope that GM and the other automakers are reading too.
You are so right. Chev’s were once good and reasonably priced. The Volt is not for the future, just a way to make money before the future catches up to N. America. China is now making cars. Volvo was recently sold to China by Ford. India makes a car priced at $2,000.00.
Barb, this weekend I met a neighbor who works for the local Chevy dealership. Would you believe that staff there have not been briefed on the Volt’s price–ever? She is now thinking she may need to find another job. I was discussing the price the other day with a relative who made, let’s just say, much more than the US median income last year. He was shocked to hear the Volt price and said it compared very unfavorably to his recent luxury car purchase. It really is a shame, because the American auto industry used to be the envy of the world. If executives were willing to take a more reasonable share of the pie, the company might be able to make it.
I own a Prius. It’s my second Prius.
I’m very happy with it. I get great mileage, even though it does use some gas. But I’ve learned to hypermile and keep my tired overinflated to increase my mileage.
I’m lucky as this year my work has relocated closer to home so I could get there on slower speed side streets and use mostly the battery. I’m hoping eventually to bike to work. (Right now I’m still hauling stuff to and fro.)
I won’t speak to the Volt’s engineering. It does not qualify for any HOV stickers in California. A Prius with an optional plug in battery installed does qualify for HOV stickers.
If I’m going to spend over $40,000 for a car, I’m going to wait, save my money, and when Tesla releases their sedan, see if I can afford that. It is all electric. It will qualify for a white HOV sticker from California (unlimited issue). Plus I can throw a few more PV panels on my roof to cover the extra electricity I’ll use charging it up. I know Tesla is hoping to get their family oriented sedan’s price low enough for middle class families to afford. I know at one time they were shooting for the $40,000 range. That will pretty much knock the Volt out of the market. GM will then say about the Volt the same thing they said about the EV1. That no one is interested in electric cars because no one bought their Volt. (They didn’t allow the EV1 to be bought, only leased. Then they took them all back and crushed them.)
GM is, sadly, not very smart about consumers and power. I miss my Saturn and the mileage I could get in it because of the lighter body.
We also have a Prius and get 54mpg. We were slow to warm up to the styling on the Prius, wasn’t that silly when the car could have saved us so much money for years. Instead we drove a car and a truck that wasted gas. The Prius, unlike the Volt is very affordable, half the price tag. We will be in line to buy an electric as soon as they get them in the range of miles that is feasable for us. For most people I would say that’s much more than the 100miles it gets on a charge now.
I can see the need for some rural people to have a truck, but most people get them just because . . . . I’m delighted to read that you get great gas mileage in your Prius on hills. It seems to me that the Ozarks with all of their ups and downs and curves are perfect for recharging!
I peeked at your blog too and love it! I’ll be adding you to my blogroll.