GM's Lauckner wishes for bigger incentives to get drivers out of gas-powered vehicles
At this point, it's no secret that the Chevy Volt and other plug-in vehicles are not going to come cheap. About the least pricey full-speed electric vehicle may very well be the Nissan Leaf, which after incentives may be in the $27-28,000 range before the extra cost of leasing the battery. While the operational costs of these cars should be substantially less than any internal combustion vehicle, customers rarely think that far ahead when signing up for a car loan. That's especially true when gas remains well under $3 a gallon here in the US.Speaking at the Business of Plugging In Conference in Dearborn, Michigan this week, GM's VP of Global Program Management told the audience that incentives will need to be increased for plug-in vehicles to start gaining a real foothold in the US market.
Although GM won't announce pricing until its launch a year from now, most observers expect the Volt to run about $40,000. With a $7,500 federal tax credit, it will still be well over $30,000, which is very expensive for a compact car. Unless gas prices get significantly higher or incentives are increased, most buyers are unlikely to find this or other plug-ins to be a good economic proposition.
[Source: Detroit News]
Reader Comments (Page 1 of 2)
Matt 5:43PM (10/21/2009)
Screw "getting out of gas powered vehicles"........
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Auari 6:47PM (10/21/2009)
I'll never own a hybrid unless they sound like REAL engines, because I love the sound of power. I NEVER turn on the radio or listen to Cd's unless the passengers insist.
zamafir 5:45PM (10/21/2009)
"Unless gas prices get significantly higher or incentives are increased, most buyers are unlikely to find this or other plug-ins to be a good economic proposition."
Right. That's the law of new technology and cars. That's why toyota sold the prius MkI at a loss, to establish it and build a market for profitable forthcoming models. That’s what companies do when they have money to R&D and plan past 2 years.
You guys are spot on, it'll be a hard sell at 30k, not impossible, but hard. Maybe since this car isn’t GM’s magic silver bullet to save the company it can be sold at a loss to make it more palatable and begin opening the market for an MkII Volt. Since that seems to be how this sorta thing has been done successfully by most car makers to date.
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Paul 5:48PM (10/21/2009)
We need significantly higher gas taxes. That's the only way to get people to a) realize the true cost of gasoline and b) change their consumption habits to reflect this.
Every time gas goes up, sales of more fuel efficient vehicles skyrocket. And to the naysayers: there's no reason "efficient" and "fun" can't co-exists. Anyone remember when the EPA era began? And then the VW GTI was introduced? Necessity breeds innovation...and fun cars.
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BoxerFanatic 6:03PM (10/21/2009)
I am sorry, and I don't mean to insult you... but that is an idiotic, and horrifically short-sighted idea. You should return it to the source you got it from.
Do you honestly think there is an endless supply of money in the average american's pocket, that they can just foot more bills at the gas pump, solely for the purpose of social engineering?
People are losing jobs, and getting pay cuts, and the dollar is worth less every day. What exact value pool is going to pay these new taxes, AND get people to buy new cars?
There is no free lunch, there is no money tree, and the government printing it as fast as the presses can go, just means that each dollar means that much less, while folks don't really seem to be seeing all that many more dollars in my pay.
Government is not a vehicle for social engineering. That is called tyranny.
If you want to pay more for gas, feel free to leave a big tip at the gas station, or send it to your local representative. Not all of us can afford that, nor should we have it seized from us.
BoxerFanatic 6:06PM (10/21/2009)
folks don't seem to be seeing many more dollars in their pay. Nor do I see more in mine. I have been salary frozen, FAR below cost of living increases, for years now.
Just to clarify a garbled sentence above...
Polly Prissy Pants 6:15PM (10/21/2009)
"We need significantly higher gas taxes"
Yes we certainly do. The price of that gallon of gas should reflect ALL costs associated with delivering it to your local 7-Eleven. Pollution, including the health issues it causes. War in the Middle East, and the terrorism it breeds. The trade deficit and the damage that causes. Urban sprawl. All of it. Then watch the free market react. If you demand a free market then you should demand paying the true cost for gasoline as well.
But nobody wants to give up the sweetheart deal they're getting today. "We can't afford it" and "That's Socialism" and all that noise. Call it a tax, call it paying for the actual cost, whatever, the bottom line is that $2.50 gallon of gas really cost all of us at least twice that much to acquire and once we start paying that at the pump the free market will undoubtedly take care of the rest.
MajorGeek 6:18PM (10/21/2009)
You do understand where electricity comes from? Wake up. There are a lot of people in this world all consuming resources and it is not going to get less by getting rid of fuel.
zamafir 6:33PM (10/21/2009)
@Paul - so what about people like me that take an extra two hours out of my day to take public transit to work, even with low gas prices, and treat my daily driver as a weekend car?
I changed my consumption habits before buying something entertaining, sure the environment benefits too... but high gas prices isn't the only solution. Let's give everyone STIs!
Thomas 6:41PM (10/21/2009)
I agree that Paul and Polly Prissy Pants need _their_ gasoline taxes raised.
Matt 6:55PM (10/21/2009)
That will help the recession.
What an idiot.
tankd0g 10:54PM (10/21/2009)
Either you pay more tax for gas now in order to fund alternatives or you pay more for it later straight into the oil company's pockets and there will be no alternative. Fortunately I'll be dead before it matters so put a turbo on that FT-86!
Joey Mazz 9:44PM (10/22/2009)
I actually agree with you, to a certain extent. While I don't want to see gas taxes raised astronomically I would like to see the federal gas tax raised up to the level that diesel is currently taxed at, and stop subsidizing e85 ethanol as well. Not only will this motivate buyers to consider fuel efficient vehicles but diesel cars will finally have the opportunity tht they deserve here in America.
John 7:19AM (10/23/2009)
@Polly Prissy Pants
"Then watch the free market react. If you demand a free market then you should demand paying the true cost for gasoline as well."
Umm, having the government raise gas taxes to make you choose a more expensive/less beneficial option is not the free market.
Gas prices, excluding taxes, DO reflect the true cost of the product, i.e. the cost of extracting it from the ground, transporting it, refining it and delivering it to the end user. All you other justifications are just social engineering. Want to reduce our trade deficit and the money going to Wahabi, terrorist supporting Saudis? Drill here in the US.
Urban sprawl? Then move back into the city, and leave the rest of us to make our own free choices (at least while we are still allowed to do so).
Pollution and health effects? How long is the average life span now, compared to, say, 1890, before we had the internal combusion engine in wide use?
Gruv 5:51PM (10/21/2009)
The Volt... is NOT, a compact car. It's quite big.
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sfdenny 6:21PM (10/21/2009)
And, the price of a comparably equipped Prius (according to GM) costs $32K
Jimbo 8:08PM (10/21/2009)
It is a compact according to the EPA classification system.
Conundrum 10:12PM (10/21/2009)
The compact Volvo S40 goes for about $30k. I am sure something as unique as the Volt can fill a similar type of market niche at $30k.
Level 5:51PM (10/21/2009)
I guess they are under the impression that everyone wants to get out of gas-powered vehicles but can't because of the price???
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BoxerFanatic 5:52PM (10/21/2009)
"If it doesn't sell on it's merits, at a reasonable price, subsidize!"
How about NO!
How about the technology not being ready yet. How about the INFRASTRUCTURE not being ready yet.
How about the energy accounting not working out in favor of electrics, and barely being acceptable for hybrids.
How about not sticking your hand out for more of people's money... then expecting them to buy your product as well. Partial seizure of money, is still seizure via government.
How about come back and talk when you have something ready for market that people will be willing to BUY, without a subsidy.
This is turning into such utter stupidity, corruption, and covetousness. Coveting other people's money, that you didn't EARN by selling them something worthwhile.
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