Chevrolet said it is cutting the price of the 2012 Chevrolet Volt extended-range electric sedan $1,005, to $39,995 -- but has eliminated two key standard feature to do that, navigation and Bose audio.

The navi and Bose will be available in a $1,995 options package, so a 2012 Volt equipped like the base 2011 Volt actually will be $41,990, or $990 more than the 2011's $41,000.

Some Volt buyers can qualify for $7,500 federal tax credits, reducing the car's net price.

Production of the 2011 has ended. The Hamtramck, Mich., factory will begin making 2012s in mid-July after being reconfigured. In addition to the 2011 Volt, Hamtramck had been building the Cadillac DTS and Buick Lucerne big sedans and those are discontinued.

The factory changes will allow allow GM to roughly triple production of the electric models. Those will include an Opel Ampera, to be exported to Germany starting the third quarter, and a European-market Volt to be sold by overseas Chevy dealers where Opel isn't the main GM brand.

Hamtramck will be able to build about 45,000 Volts for U.S. dealers next year, and 16,000 models for export, according to Volt spokesman Rob Peterson.

He said Chevy decided to ax the standard navi because Volt "has the classic high-tech, early adopter buyers and they already are using their own navigation, either through a smartphone or their own (aftermarket) system. "

In addition, Chevy will manufacture a special HOV version of Volt for California:

The California Volt will be configured to qualify get its owner one of the state's coveted the high-occupancy-vehicle express-lane stickers letting you drive there whenever you want -- even if you are flying solo in the car (an SOV?).

The state's HOV rules get stricter Jan. 1 and they will boot Toyota Priuses and other 'conventional' gas-electric hybrids out of the HOV lanes in favor of pure electrics and so-called AT PZEV (advanced-technology partial zero-emission) vehicles, such as as the California-ized Volt.

Getting the AT PZEV designation for Volt mainly involves cutting the evaporative emissions -- fumes that leak from the gasoline tank, which Volt needs for its gas engine.

The gas engine turns a generator to keep electricity flowing to the car's electric motor when the batteries get low. The engine also can drive the car's wheels under a specific, limited set of circumstances. That's led to criticism of GM for calling the Volt an "electric," and resulted in GM's emphasis on the "extended-range electric" designation.

Volt goes about 35 miles on battery-only power. If not plugged in for a recharge, the gas engine takes over to keep the car running, giving it a total range of some 300 miles.

Chevy has said that if an owner never recharged and relied solely on the gas engine to provide juice when the batteries ran down, the car would get about 37 miles per gallon.

He said Chevy decided to ax the standard navi because Volt "has the classic high-tech, early adopter buyers and they already are using their own navigation, either through a smartphone or their own (aftermarket) system. "

The state's HOV rules get stricter Jan. 1 and they will boot Toyota Priuses and other 'conventional' gas-electric hybrids out of the HOV lanes in favor of pure electrics and so-called AT PZEV (advanced-technology partial zero-emission) vehicles, such as as the California-ized Volt.

Sure, buyers start losing interest in any new model after the initial hoopla dies down and ad dollars dry up, but there's trouble on the horizon for the Chevrolet Volt, the electric wonder car.


Interest in buying the $39,995 plug-in car is starting to taper off, not only among "early adopters" but among lots of other buyers as well, reports CNW Research, which tracks such things. That's interesting considering that the Volt has some of the hottest technology going, like the ability to go 25 miles or more without using any gas and having a backup gas engine on board for unlimited range.

In March, more than 21% of early adopters said they were very likely to consider the GM vehicle. In the July study, that figure had dropped to 14.6%, CNW says. They are not the only ones. Those identifying themselves as "electric vehicle enthusiasts" were pulling away as well. Their consideration fell from 25% in March to 17% in July. Most alarming: "In fact, all categories of new-car intenders are reporting less likelihood of even considering the vehicle."

The big problem -- no surprise here -- is price. It's cited by both the early adopters and the EV enthusiasts as a stumbling block.

The new Toyota plug-in Prius is being priced about $8,000 less than Chevrolet's Volt. Both cars can run on electric power alone until the juice runs out and the auxiliary gas engines takes over. So will the plug-in Prius sink the Volt?

Seems like there is a reasonable chance. The Volt, at $39,995, runs farther on electric power alone, more than 25 miles. But while the Prius will only run about 15 miles on electricity alone, it will be capable of being fully recharged in a quick three hours.

Chevrolet has had to build word about the wonders of its Volt plug-in from scratch. But Toyota enters the plug-in gas with a gold-standard name -- Prius. The current and two previous generation of Prius are generally beloved by their owners, and not just because of their gas-savings. The cars have been lauded for their handling and reliability.

Each Chevy Volt sold thus far may have as much as $250,000 in state and federal dollars in incentives behind it – a total of $3 billion altogether, according to an analysis by James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.

GM has estimated they’ve sold 6,000 Volts so far. That would mean each of the 6,000 Volts sold would be subsidized between $50,000 and $250,000, depending on how many government subsidy milestones are realized.

If battery manufacturers awarded incentives to produce batteries the Volt may use are included in the analysis, the potential government subsidy per Volt increases to $256,824. For example, A123 Systems has received extensive state and federal support, and bid to be a supplier to the Volt, but the deal instead went to Compact Power. The $256,824 figure includes adding up the subsidies to both companies.

The $3 billion total subsidy figure includes $690.4 million offered by the state of Michigan and $2.3 billion in federal money. That’s enough to purchase 75,222 Volts with a sticker price of $39,828.

Additional state and local support provided to Volt suppliers was not included in the analysis, Hohman said, and could increase the level of government aid. For instance, the Volt is being assembled at the Poletown plant in Detroit/Hamtramck, which was built on land acquired by General Motors through eminent domain.

“It just goes to show there are certain folks that will spend anything to get their vision of what people should do,” said State Representative Tom McMillin, R-Rochester Hills. “It’s a glaring example of the failure of central planning trying to force citizens to purchase something they may not want. … They should let the free market make those decisions.”

“This might be the most government-supported car since the Trabant,” said Hohman, referring to the car produced by the former Communist state of East Germany.

According to GM CEO Dan Akerson, the average Volt owner makes $170,000 per year.

GM will cease production of the Chevrolet Volt plug-in hybrid for more than a month to cut back on rising inventory levels. The move represents the second Volt production halt this year aimed at dealing with oversupply issues.

Production of the Volt at GM’s Detroit-Hamtramck factory in Michigan will cease from March 19 to April 23, according to a Detroit News report. The Volt and its Opel Ampera twin will be the only vehicles built at the plant, which employs 1,300 workers, until production of the non-hybrid Chevrolet Malibu begins later this year.

The Volt actually enjoyed a relatively strong month in February, with 1,023 examples finding homes over the course of the month. However, GM still ended February with 6,300 Volts siting on dealer lots, which equates to roughly a 154-day supply at the current sales pace.

“We need to maintain the right inventory levels and continue to meet demand,” GM spokesman Chris Lee said.

GM had previously suspended production of the plug-in hybrid last December as part of the automaker’s holiday assembly plant shutdowns. The production halt lasted until February 6th, a month longer than is normal for most GM models.

"For most Americans a car is an investment and when you think about what car you want to buy the resale value matters a lot," says Adner. "The resale value for an electric car is dramatically different than for a regular car and it all comes from the battery," which is half the cost of the car.

As is typical of batteries, they get used up after a certain amount of use. They have a finite lifespan, which leaves you with "depreciation on the most expensive part of your car," Adner says.

But battery technology is constantly improving. "That is great news for everyone who has not yet bought a car," he notes. But "[if] You buy a 2012 (Nissan) Leaf and you try to sell it back to the market in 2016 and [guess] what you find?"

You'll find that the technology is outdated and much better in newer vehicles. "Suddenly selling your car back to the market is like selling a used computer," which, like all technology, tends not to hold value upon resale.

Adner does have a solution. "You have to decouple the purchase of the car and the purchase of the battery…using a model that looks just like the cell phone providers who also give you a really expensive piece of hardware [but] take the depreciation out of your hands by putting you on a multi-year contract." In the accompanying interview, he tells Aaron that one company called Better Place is already doing this.

As a tech statement, the Volt is this century’s bold stroke. But in the harsh world of new-car economics and no-kidding comparison tests, it finished second to its kid brother here for several reasons. Topping that list is initial cost. Even after you’ve cashed in the federal government’s generous $7500 tax credit and applicable state or local subsidies, the Volt costs roughly 50 percent more than the Cruze. And, in any given lifetime, there’s no way to make a payback pencil out. Based on EPA combined-mileage ratings, $4 per gallon for gas, and $0.112 per kWh for electricity, the savings attributable to driving the Volt 100,000 miles solely on electricity over the gas-powered Cruze is only $8089.

Nat gas wont work for most. There simply arent enough refilling stations for it.
Electric? sure lets tax the already over used grid system even more and have every one plug their cars in. Yea, that works cause every one has 8 hours to waste every 40 miles to charge the batteries.

Dont know about you but i cant afford 3 new alternative fuel vehicles to replace the gas burning ones i have. Dont think many out there can. Gas is here to stay, and for quite some time. Allowing fuel prices to climb drastically high to help push ones agenda isnt good for anyone.