Loaded vehicles have higher margins, so base models can be priced lower – if you can find one.
Chevrolet has announced that the base price for a 2012 Volt will be $1,000 lower when it goes on sale later this year. Suggested asking price is $39,995. The price includes an $850 freight charge but excludes tax, title and license fees. Some customers might be eligible for a lavish $7,500 taxpayer subsidy making the plug-in hybrid less expensive, but still at a steep premium when compared to conventional compact cars.
In a convoluted statement, Chevrolet said that “the lower base price is possible in part because of a wider range of options and configurations that come with the expansion of Volt production for sale nationally.” Dealers in all 50 states can now take orders for the Volt, up from just seven states and the District of Columbia this year.
Huh? More complexity in manufacturing means higher costs. For 2012, consumers will be able to choose from a total of seven option packages compared with only three for the 2011 model. A loaded Volt, with leather appointments, backup camera, navigation system and premium paint and wheels is now priced at $46,265 including delivery.
Press Release Translation: Loaded vehicles have higher margins, so base models can be priced lower – if you can find one. This begs a further question – if you want Cadillac pricing why didn’t you make it Cadillac in the first place.
“We are giving consumers greater choice of content as the Volt becomes available nationwide by the end of this year,” said Cristi Landy, Volt marketing director. “This gives us the opportunity to be more flexible in our pricing and still provide additional high-tech content to customers who want to purchase it.”
Chevrolet expects to build up to 45,000 Volts for retail and fleet customers in the United States during calendar year 2012. Year-to-date Volt sales are 2,184, so GM is looking at substantially higher volumes for what remains an expensive vehicle to make and buy.
The limiting factors in Volt sales predictions include the expense of the 16-kWh lithium-ion battery pack, and the decidedly uncertain future of taxpayer incentives for its purchase – currently $7,500 at the federal level – as the U.S. budget deficit soars to unsustainable levels, requiring taxpayers to borrow 42 cents for every dollar spent.
The reality is that while much consumer research indicates that saving the cost of fuel is overwhelmingly the predominate reason people give for considering a “Green” machine such as the Volt, the initial cost is too high and the payback too long – if there is even one for the original or subsequent owners – to translate that desire into an actual purchase. (See Why “Green” Alternative Vehicle Sales Will Remain Limited)
The Volt has the fuel economy (but less interior space) than numerous compact cars selling for half the price, including Chevrolet’s own Cruze and the upcoming 38 mpg Malibu, which is much larger. (See Chevy Volt has MPGe Rating of 93, 37 MPG Combined)
New Volt equipment for 2012 includes:
- Standard keyless access with passive locking; the car automatically locks and unlocks with the key fob in close proximity of vehicle
- OnStar Turn by Turn navigation for three years, with the optional in-dash navigation system
- Chevrolet MyLink including Bluetooth streaming audio for music and some phones (late availability)
- Standard AM/FM stereo with CD player and MP3 playback and 7-inch diagonal color touch-screen display
Chevrolet continues to offer an eight-year/100,000-mile limited warranty on the Volt’s 16-kWh lithium-ion battery, plus:
- Three-year/36,000-mile* bumper-to-bumper coverage
- Five-year/100,000-mile* roadside assistance and courtesy transportation
- Five-year/100,000-mile* limited gas engine coverage
- Six-year/100,000-mile* corrosion protection coverage.
