GM has announced details for the 2012 Model Year Chevrolet Volt, and for the second year of production The General is already addressing the Volt’s most controversial feature: its high price. The base MSRP for the Volt will drop from $41,000 to $39,995 for the 2012 year of production, an accomplishment that GM explains
is possible in part because of a wider range of options and configurations that come with the expansion of Volt production for sale nationally.
Wider range of options and configurations? According to the Detroit News, this means navigation and a Bose speakers are no longer standard features on the base-price Volt, but that seven options configurations are now available compared to the 2011’s three. And, on the other end of the pricing equation, the Volt’s fully-loaded price has increased to $46,265 from the $44,278 that Chevy’s configurator tops out at for a loaded 2011. Keyless access with passive locking is the only new standard feature for 2012. With more choices and a slightly lower price of entry, GM is clearly trying to move the Volt away from the “novelty” image that CEO Dan Akerson referenced earlier this week, as it ramps up Volt production for 60,000 units next year. But until the Volt’s price starts dropping without simply offering a less-contented version, the road to mass sales will continue to be a tough one.
the 7500 dollars of other people’s money is still standard for 2012
Just like on the Tesla Roadster…
Just like on the Nissan Leaf…
Bah, never mind, why get in the way of someone pointing a finger at GM over a bad government decision on using tax incentives to goose the free market.
Didn’t the first couple hundred thousand Prii, assorted Toyota hybrids, Ford Escapes, assorted Honda hybrids, and the Nissan Altima hybrid also come with an “other people’s money” bonus?
Sure the original wave of hybrids got a rebate but this is three times the size.
It’s probably appropriate to point the finger at GM on this rebate, anyway, as its doubtful that the Michigan Congressional delegation would have worked hard for this to aid Nissan or Tesla.
So who do we point the finger at for the hybrid rebate? The precedent was set already. This is just going with that precedent. You want to blame someone, look there.
None of them should be subsidized.
Given that the Toyota hybrids were subsidized, these should be, too.
You forget, SVX pearlie, GM’s hybrids were subsidized, too. Sadly, GM chose to build hybrids that wouldn’t sell, even with the subsidies.
Two wrongs don’t make a right.
Tax credits: good for Exxon, bad for Volt buyers. I totally get it now.
No, it’s not quite like that. GM is enjoying a subsidy that makes an unsaleable car just barely saleable. We’re not subsidizing a forward-looking technology so much as we’re subsidizing lunatic marketing.
We should target any subsidy to vehicles that are nearly economically ready for prime time, not vehicles that are still way out there. It doesn’t help to jump-start sales of something that’s still going to be unsaleable when the subsidy runs out.
And I’m fully on board with ending tax credits for oil companies.
@Kixstart –
Tax credits for cars is nothing new. Up until a few years back, the IRS extended the business writeoff for “light duty trucks” to apply to SUVs…the net effect being that business owners could write off their Navigators and Escalades, right along with the crappy work truck. Uncle Sam did it to pump up sales of these vehicles – which, not coincidentally, are the highest-profit items the Big Three make.
I think the Volt (or another EV) makes a FAR better case for itself when it comes to a tax credit.
I have to disagree with you here Kix. People are going to buy this car with or without the rebate. The rebate does make it easier to buy for some people. But I don’t think you can say that they are subsidizing lunatic marketing over forward-looking technology. If so, what is the gov’t doing with the Leaf? It is a less livable car that is still very expensive.
@Kixstart –
…Tax credits for cars is nothing new. Up until a few years back, the IRS extended the business writeoff for “light duty trucks” to apply to SUVs…the net effect being that business owners could write off their Navigators and Escalades, right along with the crappy work truck. Uncle Sam did it to pump up sales of these vehicles – which, not coincidentally, are the highest-profit items the Big Three make.
I think the Volt (or another EV) makes a FAR better case for itself when it comes to a tax credit…
I couldn’t agree more. While I’d rather see no such breaks, one embraces the future, the other just makes it easier for a contractor’s wife to drive a guzzler as her personal car. She’s entitled to her guzzler, but I don’t want any part of subsidizing that behavior.
LMAO! Decontenting is “expanding options” – I guess. Ya gotto love GMspeak.
I assume GM were referring to having 7 options packs instead of 3. 7 > 3.
At least you only pay for what you need.
Let’s release an electric hybrid in the WINTER! Oh, yeah, the states that get it then, the flyover states. Thanks.
I don’t think that November is technically winter, but the Volt was released in November last year.
Have you BEEN to either of the Dakotas in November?
It’s winter. ;)
Ever been in Texas in May? Summer doesn’t start till June. It doesn’t matter that it is 100 degrees.
At least GM is doing a national rollout.
Can’t wait to see the performance of a Leaf in Minnesota winter.
The price drop is a bit silly; had they reduced the price without removing features, this would be news. But whats the point of all those flashy screens if you don’t have Nav built-in?
In any case, I’m disappointed Chevy isn’t making improvements to interior quality and materials. Every review I’ve read says for the money your spending it’s a bit too low-rent in there, a lesson they obviously didn’t learn from the Corvette.
Ya, what’s the purpose of that fancy screen in the Prius if it doesn’t come wtih standard navigation!
Wait a minute…
What’s the point of those flashy screens in BMWs if they charge you extra for Navigation?
Is it simply to charge you extra?
(BMW owners, please don’t give away the answer)
BMW gets away with charging extra for things that even GM often provides as standard…
“DECONTENT!!!” A (slightly) lower base price, and more expensive options. Welcome to the NEW GM!
$1000 drop? Call me when it sells under $20k
typical GM speak. they have no credibility.
Psh.
The problem is that the leather-trimmed version isn’t a Buick-badged Electra using the Opel Ampera bits.
If Toyota can sell a leather-trimmed Prius as a Lexus, GM should be able to sell a nicer Volt as a Buick.
It will be very interesting to see how market demand matches up with the planned 60,000 production. The supply has been so limited since it went on the market there has been no way to gauge the actual market acceptance.
According to some reports including here on TTAC dealers are selling them amongst themselves to get the $7,500 tax credit. A loophole if ever there was one.
I predict that 60k production capacity is about 30k too high.
The True Believers will already have their Volts by 2012, and remaining potential buyers will not want to spend $40k minimum on a 4-seat economy car, especially when they can get a nice Cruze for 1/2 the price and better highway fuel mpg.
I accept most of your points but this obsession with highway mpg is annoying. Hyundai and others love to tout 40mpg highway but city or, even better, combined should be what we look at. Highway can be gamed but combined is a more realistic evaluation of the mileage likely to be seen by the owner – unless you only ever drive highway and do no urban driving. This is where hybrids and the Volt have an advantage because their city figures are very good combined to “normal cars”.
@gslippy:
Agreed.
Not if Obama’s buddy at GE has anything to say about it..
More decontenting… Most $40k cars that are considered “technologically advanced” have keyless ignition standard (Lexus, Infiniti, Audi, etc.).
We might have a better idea of how the thing would sell if GM shoved aside the “rollout states” and “dealer allocations” BS and simply took orders with deposits from customers and routed cars right to the customers who actually want them.
It would also eliminate the dealer swap nonsense (which probably isn’t a big deal, in the grand scheme of things but still makes it look as though GM can’t stop stepping on its own d!ck).
Limited supply of the first build, it makes sense for GM to do what it did. GM can’t sell directly to customers. Only dealers can.
The dealer swap nonsense was 1 chevy dealer in a state that didn’t receive allocations yet. The rest of them have been dealers of other brands (Kia dealers have been selling used Volts). But from what I have read, it has only been a few dealers that has done this.
This isn’t something that GM can control. Should be fixed in Washington with the rebates available at the time of sale like cash for clunkers.
Interesting that they say they aren’t going to be available in WA until September 2011 because I saw my first one in the wild on Wednesday which according to my calender was June 2011. It was wearing the WA temporary 30 day tag that didn’t expire until some time in July so it was purchased real recently.
Not only have dealers been trading them back and forth across state lines, allegedly for the tax credit (note, I think the practice is fairly limited), individuals are crossing state lines to get them.
In fact, this is one of the things that makes future Volt sales an interesting question… The hard-core Volt buyers aren’t all in the rollout states and some fraction – may be significant – of sales is actually to satisfy demand in non-rollout states. I wouldn’t go so far as to say there’s not going to be any demand left in the non-rollout states but one wonders what the impact may be.
Also, the original rollout states made the Volt nominally available to perhaps a third of the population of the country. Sure, nationwide rollout is a big increase in population with access to Volt sales but consumer demand for it in, for example, the flyover states might be very limited. There are some major metro areas out there but perhaps less environmental interest and less interest in having the newest tech. They sell a lot of Suburbans here on The Northern Plains.
The best way to increase Volt unit sales, of course, is to lower the net price by a third but it doesn’t seem like that’s in the cards.
Yes people can cross state lines to get them but in the case of the one I found it had the temporary tag just issued from a WA dealer, doesn’t mean that the dealer didn’t get it from a CA dealer but in this case the retail purchaser didn’t. If they would have brought in in from out of state and went to a license agent they would have been issued the real plates on the spot.
Clearly you’ve never bought a car from out of state before.
It goes something like this.
Hello, is this Chevrolet of Los Angeles? Hi, this is HoldenSSVSE and I want to buy a Chevrolet Volt, I was looking on Auto Trader and you were the closest dealer to me with one in inventory.
Where do I live, Washington.
Yes, the dealers won’t be getting them here until the fall but I really want one, it is a very exciting car. I’m prepared to wire transfer money after we’ve negotiated a fair price and I can arrange for transit to Washington, do you have a carrier you prefer?
That’s great – yes, you probably can get a better price on transit, what is your name again.
(after about 15 to 30 minutes of haggling).
I’m so glad we could reach a deal (transfer to finance manager)
If you could e-mail me or fax the documents and provide me your routing and transit numbers for the money transfer, we can get this done!
(total time on phone between maybe 3 to 5 phone calls – 60 to 90 minutes)
A couple of weeks later a flatbed shows up at your Washington driveway (or agreed to drop off point) with one shiny new Chevy Volt from a California dealer in your driveway. You pay the sales tax to Washington state, you register it to Washington state, you get the temporary paper plate while the title is processed, just like in Washington state.
People do it ALL the time.
Some people admire the availability of a “stripper” version, but apparently there are none on this forum.
It’s $1000 less without the heavily overpriced crap that I don’t need or want? Sure, I like that option.
Is there any Volt/GM fan that will acknowledge that without the $7500 tax credit, that the Volt would indeed be stickering for $33k, a price still too high for what it delivers, instead of the ridiculous $40k mark?
Is there a Leaf fan that will acknowledge…
Seriously, how can anyone know this?
All of the Volt fans say that… A quick trip to http://gm-volt.com will confirm that (or it used to back when it was a blog), if you’re interested.
IIRC, the $7500 thing is currently a tax credit, though, so you have to wait until you file your taxes to get the refund. I think they’re planning to change the rule in the next year or two so that the buyer doesn’t have float an extra $7500 until the end of the year.
I’d love to replace our Prius with a Volt, but anything that says $40k on it says “you can’t afford it”. But, dropping the sticker price from $41.5k to just under $40k is a hopeful sign. Our 2004 Prius has been so reliable and such a good match for our needs that it waiting a few more years for the price to come down (and for me to get a raise) is perfectly acceptable. The Volt looks like it has a lot of the same advantages as the Prius (like the hatchback).
The people buying the Volt are basically from my demographic, except that they’re slightly older and richer than I am. Also, my old pickup truck needs to be replaced with a family-friendly vehicle before the Prius is up for replacement. The condition of the vehicles in our household fleet, combined with my hope that the cost of the Volt will come down will delay my purchase of a Volt — but it doesn’t make me want the car any less.
OK, so they’re knocking $1000 off the price for no nav but if the next guy wants it they’ll have to add $2000? I like strippers but don’t insult me. Is there anything worst than an insulting stripper?
A stripper who demands you tip in $100s instead of singles
Massachusetts = We’re supposed to be “high-tech” and such, so why are we the last? (This has happened before, but I can’t think of an example right now.)
If anyone really wants to cut their carbon footprint, greenhouse emissions, or whatever they should move to a large city, get a work at home job, turn off the TV, and join a group of folks gardening on rooftops.
They can feel good while not fleecing the taxpayers for cars.
You’re right.
Green cars such as the Prius, the Volt, and the LEAF are for people who want to live a mainstream lifestyle while wasting a little less. They are not for the hard-core enviros out there.
And, yes, before you ask, I am a Prius driver. And I resemble this remark.
People who really want to do something substantial about these issues should (and often do) adopt something like your plan. I happen know a number of car-free / TV-free Urban dwellers, and I have a great deal of respect for their choices. Another option is to move to one of the dozens of eco-villages around the country, and accept the cultural and lifestyle requirements that come with living in any values-based community. In my experience, people from both of these groups are far less likely to own cars than the general public, so car makers don’t make a car for them.