As competition heats up in the electric car market, Chevrolet has just announced it will be cutting the price of the 2014 volt by a substantial $5,000, bringing it down to a starting price of $34,995. Itâ€™s perhaps a smart move since the Toyota Prius and Nissan Leaf have been surpassing it in sales.
â€œWe have made great strides in reducing costs as we gain experience with electric vehicles and their components,â€ said Chevrolet vice president Don Johnson. â€œThe 2014 Volt will offer the same impressive list of features, but for $5,000 less.â€
The two biggest competition EVs are both under the $30,000 mark, which has likely contributed to the better sales numbers. The Prius starts at $25,010 and the Leaf starts at $29,650. The price cut will help the Volt show up in the same searches when online shopping for an electric vehicle.
â€œGM loses money on each Volt it sells while not disclosing a specific figure. The model, which is eligible for a $7,500 U.S. tax credit, was introduced in 2010 and has struggled to meet some sales targets,â€ said Alec Gutierrez, senior analyst at Kelley Blue Book in an interview with CNN Money. â€œVolt is GMâ€™s flagship car for its efforts to have about 500,000 vehicles on the road by 2017 with some form of electrification.â€
The 2014 Volt can travel 38 miles on a single charge before the gas engine kicks in. When combined with a 37 MPH gasoline engine that provides an additional 342 miles per tank, drivers are able to feel much less “range anxiety” on longer drives.
While the Volt isnâ€™t on top when it comes to EV sales, 92% of its owners said in a Consumer Reports survey that they would buy another. Thatâ€™s some pretty solid marketing for Chevy and GM, and now that the carâ€™s price is on par with the competition, could do some serious favors for its sales.