While we all wait with baited breath to find out if the reality of the Chevy Volt meets up with the promise, many other non-performance related questions remain as well. Cost is obviously a big one. The goal is for the Volt to be a high-volume mainstream car and for that to happen it has to be affordable. Affordability affects both General Motors and end consumers. The price has to be low enough that lots of people can buy it. At the same time, GM has to be able to get economies of scale to bring the piece costs down enough that they can afford to sell the car. Unfortunately, it looks like the initial volumes will be lower than some people had hoped for. In a report in the Globe and Mail, Bob Lutz has said the initial year volume will be about 10,000 units. Because of the new technology in this car, GM is clearly reticent about pushing out too many cars too quickly until they see how they work in the real world. Once GM gets cars in the field and sees that they are working reliably, the company will ramp up production. If everything works as planned and the cost of the batteries falls - as hoped - the volumes will climb quickly with a range of models being built from the E-Flex architecture.

[Source: Globe and Mail]

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