GM looking for Volt tax break to bring cost below $40k

GM is working hard to produce a game-changing electric vehicle for the masses, but the General's precarious cash flow situation, coupled with the high cost of development, is conspiring to the push Volt's retail price to around $40K at launch. In an effort to mitigate this particular issue, GM is lobbying Congress to bring tax breaks to Volt buyers, and company insiders say the breaks could be on the order of $7,000 per vehicle. GM is also working to insert the words "extended-range electric vehicles" in any legislation, to make sure any other vehicle with the Volt's capabilities can reap the same benefits.

Insiders at the General told Automotive News that the Volt program is still on pace for November 2010 production, and that company engineers are gaining confidence in the car's lithium-ion technology every day. If GM can follow through with its lofty technology promises (while getting Uncle Sam to pony up some pretty hefty tax incentives), the Volt should be the hit Bob Lutz dreams about at night.

[Source: Automotove News (subs req'd)]

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