GM seeks Volt tax break to lower the $40k price
As you know the future Volt is expected to have a price close to $40,000 when will go on sale in 2010. That’s pricey compared with rivals such as the Toyota Prius hybrid, but taxpayers may help lower that sticker.
GM is lobbying Congress to create tax credits benefiting "extended-range electric vehicles" such as the plug-in Volt, says GM spokesman Greg Martin. "We need to make sure the legislative language does include extended-range electric vehicles."
The Volt concept is powered by an electric motor running off lithium ion batteries. A small gasoline engine recharges the batteries after the vehicle has traveled 40 miles or so. Owners can recharge the batteries overnight by plugging the car into an electrical outlet.
A source familiar with GM’s Volt program says some proposals for federal tax credits could knock up to $7,000 off the Volt’s price.
Company insiders now predict 10,000 to 30,000 Volt sales in the first year, with volume growing as it hits full production. GM is counting on the Volt to be a high-volume seller after the first few years. GM expects to bring the Volt to market by November 2010, sources say.
"There haven’t been any recent developments that threaten the timing," says a source familiar with the project. "To the contrary, our confidence in the lithium ion battery continues to grow. But we still have a lot of development and testing to go."
Source: Automotive News