GM is announcing the arrival of the first “driveable Volt” in China, in a move that GM’s China boss Kevin Wale calls a sign of The General’s “long-term commitment to bringing our industry-leading technology to China.” And despite a distinct lack of Chinese demand for green vehicles, a recent survey that shows as much as 75 percent of Shanghai’s drivers plan to purchase an EV in the next three years (not to mention government plans for increased EV subsidies) is giving GM hope that its plug-in will take off there. But in order to achieve Chinese-market success with the Volt, GM will likely have to offer the vehicle at a price point well below its US-market MSRP of $41,000.
GM tells Automotive News [sub] that its Chinese Volt pricing “will be competitive,” although it’s not clear what the Volt’s competition is exactly. GM may be referring to the Chinese Volt purchase price compared to the US Volt purchase price, as the Chinese government is offering a $7,320 incentive for hybrid car purchases in five Chinese cities, while the Shenzhen government is offering a further $4,413. Those incentives should bring the Volt’s price to under $30k, but it applies equally to Chinese-market plug-ins such as the much cheaper BYD F3DM. That vehicle, which starts around $22k before government incentives, may not have the capability of the Volt, but after incentives it is priced competitively with a number of regular Chinese-market cars. Even so, the F3DM has sold only 500 units this year.
At about twice the price of the Chinese-made F3DM, the Volt has an uphill battle ahead of it… unless GM prices the Chinese version below the US price. But then The General has to worry about the perception that it’s forcing US consumers to subsidize Chinese sales of the Volt. Considering that American taxpayers bailed out GM just last year, that would make for some cold thanks. But that’s what you get when you bail out a multinational company on patriotic grounds, right?
GM’s attractive lease on the Volt may not work in China, since most people there buy cars with cash. But who knows…it may be a new successful strategy.
The BYD F3DM probably doesn’t sell due to customer weariness of the Chinese technology being as good as the company says it is. The Chinese have higher confidence in foreign brands, and the Volt’s price may not prove to be a huge barrier, especially given the fact that GM will probably send very small numbers of Volts over there for the first few years.
Whenever an article on EVs runs, someone says, “What about the overstressed grid?”
In the US, charging is not an issue for the grid… especially overnight there’s plenty of power available.
But… charging in China? That may be a different story. They’re having trouble building capacity as fast as people build demand and in certain locations I’ve visited, it looks as though hundreds of amps are delivered through 10 amp extension cords.
As to price… I see no need for GM to cut the price in China. They’re only making 10K in 2011, anyway. How many will be available for export? Two dozen? GM could price them well above US market and, out of 1.3 billion people, there’s certain to be a few that just “gotta have” this vehicle, no matter the price.
There are hardly any Pruises on the streets in China, which makes me suspect that a much more expensive and untested vehicle such as the Volt has little chance of success.
BYD boss: Okay team, Chevy’s brought an EREV to China. I want a BYD e6 EREV by the end of the month! Here’s a Volt. Take it apart, see what makes ‘er tick, and get back to me, hen kuai!
“But in order to achieve Chinese-market success with the Volt, GM will likely have to offer the vehicle at a price point well below its US-market MSRP of $41,000.”
The same is true of the US market. What a boondoggle.
The US market is probably a little different. There are likely enough to be 10K people here who will pay any price to “get off oil.”
It’s only in Year 2 that the US Volt must actually appeal to sensible people.
Just what the Chinese need when sitting in a Shanghai traffic jam: a volt with a battery approaching zero…and nowhere to go.
The plug on this grotesque abomination should have been pulled a long time ago. Oh well, what’s another tax payer subsidy when we taxpayers will never be able to service the already existing debt? Just keep piling it on…and don’t worry, be happy.
I think they should badge-engineer it into a Buick. Voltlark? Voltallo? LeVolt?
At this point I don’t car if it’s subsidized. I’m curious if it was 60% off (and not called a Buick) if it would sell there.
I still don’t think Obama is finished writing Washington checks
to Gov’t Motors yet!
Speaking of government subsidies, the Volt will be selling at a loss, in the U.S. as well, according to Bob Lutz when he appeared on Late Night /David Letterman.
I am guessing that it will be very low volume and the price won’t be too much if any lower. It will be interested to see if this goes off of a lease in China.