Government keeps trying to create demand for electric cars. People aren’t buying. Chris Koos is putting in charging stations at taxpayer expense so he can give away free electricity. Great plan.
Aug. 6, 2013, 2:55 p.m. EDT
GM Volt zapped in electric-car price war
General Motors cuts 2014 sticker price by $5,000
By Jeff Bennett
DETROIT (MarketWatch) — General Motors Co. cut the starting price of its latest Chevrolet Volt electric car by 13%, expanding a price war among makers of plug-in vehicles in response to sluggish demand.
The price cut is yet another sign of the difficulties GM GM -0.06% has faced trying to establish a market for plug-ins. Overall, plug-in vehicle sales are rising, driven by offerings such as the Tesla Model S from startup Tesla Motors Inc. TSLA +12.75% But despite government subsidies, they remain a niche market.
Limited driving range is an obstacle for most all-electric cars. Volt, which uses a gasoline motor to extend its range to 380 miles, has to compete with fuel-efficient Chevrolets that sell for as little as half its sticker price.
The sticker price on the lowest-cost 2014 Volt will fall to $35,000 from $40,000 and could cost as little as $27,500 after federal tax incentives, GM said on Monday. Consumers will be able to lease the 2014 Volt for as low as $299 a month.
GM’s price cut follows similar moves by Ford Motor Co. F +0.24% and Nissan Motor Co.JP:7201 -1.58% Ford last month dropped the sticker price of its all-electric 2014 Focus compact to $35,200, a $4,000 reduction. Nissan, earlier this year, slashed the price of its 2013 model Leaf by $6,400 to $28,800. Honda Motor Co. JP:7267 -1.58% also cut the monthly lease on a Fit EV to $259 from $389 in June. On Tuesday, Daimler AG DE:DAI -0.37% cut the three-year lease on the electric version of its Smart car to $139 a month from $199 a month.