Potential Energy

GM Sets a Price for the Volt

At $41,000, the Volt will be more expensive than a competing electric vehicle from Nissan.

Kevin Bullis 07/27/2010

  • 16 Comments

GM has announced that it will sell the much-anticipated Chevrolet Volt--an electric car with a gas generator for extending driving range--for $41,000, which is about what people had been expecting. The automaker notes that with a federal tax credit, the actual cost to consumers is $33,500.

GM starts taking orders for the car today. It will be available initially in California, New York, Michigan, Connecticut, Texas, New Jersey and the Washington D.C. area. To buy one, you need to go to a Volt dealer, which you can find at http://www.getmyvolt.com.

The car costs more than the Nissan Leaf, which is also coming out this year. That car will sell for $32,780, or $25,280 after the tax rebate. Both are far more expensive than GMs new, more fuel efficient sedan called the Cruze, which costs $16,995 and is similar in size to the Volt.

With the Cruze, you can get 40 miles per gallon (with the Eco version). The Volt offers 40 miles of electric range with a charge, and 300-miles more with a range-extending gas generator. The Leaf offers 100 miles of gas-free driving range between charges.

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El Zato

5 Comments

  • 562 Days Ago
  • 07/27/2010

Don't forget...

I agree that electric cars are the future, but FAR future, when there's a non-chemical (i.e. pollutant) and efficient way of storing electricity. Righ now we are stuck with hybrid cars with gasoline engine, or plug-in cars that use electricity generated by... coal! I think Natural Gas is the best, clean alternative energy source we can use right now, be it to generate electricity to move electric cars, or drive cars with internal combustion engines that run on Natural Gas, like the ones that exists in Europe, Asia, the Americas, and the only one available in the USA: The Honda Civic GX.

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gabrielg01

450 Comments

  • 562 Days Ago
  • 07/27/2010

Re: Don't forget...to invest now for the future

Your argument is flawed/naive.

Waiting around until some miracle battery materializes out of nowhere...Better batteries will only come around if we use them, and if we create market demand. A journey of a thousand miles is made of many, many little steps...and you have to take those freakin' steps, because you won't get there by teleportation.

The Volt, and the Leaf, and the Tesla etc. are making those steps, which will eventually result in far better batteries.

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devassocx

110 Comments

  • 561 Days Ago
  • 07/28/2010

Better batteries

>>only will happen if we use them???

Really? Seems to me that the Pb acid batteries we
use in every ic car isn't that much different than it was 100 years ago. I think you make a very weak argument.

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devassocx

110 Comments

  • 561 Days Ago
  • 07/28/2010

Subsidies?

I think the subsidies we are making now are way
too much...if it can't stand on its own then it
probably shouldn't exist.

You make a good point about the real cost of oil but you might be confusing oil with our commitment
to certain countries in the middle east and other
geo political considerations. I don't see too much
oil in Afghan or in the Balkans, do you?

Reply

nopcbs

12 Comments

  • 561 Days Ago
  • 07/28/2010

Re: Subsidies?

We're talking ideology here. Some people are all for Big Brother telling you what to believe, what you can buy, what you have to subsidize. As it stands, the subsidies for these cars are obscene and a big ripoff of the American tax payer. Not only do the buyers get a huge tax break for buying the things (that are wildly over-prised, even then, for what they are), but if they run off electric alone, the drivers are parasites w.r.t. road use. They pay nothing to use the roads that everyone else pays gas taxes to use.

Yep, all us animals are equal, it's just that some animals are more equal than others.

- nopcbs

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dlathrop

2 Comments

  • 556 Days Ago
  • 08/02/2010

Re: Subsidies?

sadly silly and uninformed ... the world is a system... scrabbling about eating each other like amoeba is simply not taking advantage of our ability to think long.... you're obviously entitled to your opinion, but it's pretty outdated thinking in my view.

Reply

GaryB

119 Comments

  • 561 Days Ago
  • 07/28/2010

Re: Subsidies?

You are right!  I'm so pissed off about the microchip and internet.  These technologies only got off the ground due to massive government subsidy and industrial policy!!

No libertarian would ever use government derived computers and communication systems. The internet and silicon circuits suck ... and it's all the Government's fault.

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Bob Wallace

71 Comments

  • 561 Days Ago
  • 07/28/2010

Don't forget...

Trains, the electric grid, GPS, phones, air travel, polio and smallpox vaccines, hospitals, ....

The only thing a good libertarian should consume is what he can root out in his personally owned patch of woods.  That is, assuming he didn't use any government aid in purchasing those woods....

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gabrielg01

450 Comments

  • 561 Days Ago
  • 07/28/2010

Re: Subsidies?

Also add to that subsidy list all present and future medical care, as this is the result of decades of government spending.

Markets don't give a sh*t about the future. Their horizon only extends to the next quarter's earning report.

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Bob Wallace

71 Comments

  • 561 Days Ago
  • 07/28/2010

Cruze - 40 MPG

Cost per mile with $3/gallon gas = $0.075/mile.

Leaf with $0.105/kWh electricity = $0.032/mile.

12,000 average annual driving $516 per year.  That's a 16 year payback period.  Too long to make the Leaf the best choice based on finances alone.  (People driving more per year may figure differently.)

But when gas goes above $5 a gallon the world changes.  And both OPEC's and the IEA's numbers suggest that we are already seeing oil supplies tightening.  If that holds look for prices at the pump to resume their climb upward....

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gabrielg01

450 Comments

  • 561 Days Ago
  • 07/28/2010

Re: Cruze - 40 MPG

That is exactly why we should tax the crap out of the oil industry.

Use the money for developing clean sources of energy, and clean methods of transportation.

Reply

dlathrop

2 Comments

  • 556 Days Ago
  • 08/02/2010

Re: Cruze - 40 MPG

taxing oil industry is fine, but insufficient... taxing consumption is more important as that will create street-level drive for change which creates market potential which makes innovation attractive. if we wait til the absolute shortage creates unacceptably high prices for oil, we will have squandered the interim years of potential innovation pressure. double the price of gas in our market (where prices are artificially low, globally) and watch innovation increase.

Reply

dmm

270 Comments

  • 561 Days Ago
  • 07/28/2010

Re: Cruze - 40 MPG

It's even worse.  How long will the batteries last?  5 years?  So you'll have to replace them twice in that 16-year span, and that's a significant fraction of the cost of the vehicle (before the tax break).  Anywhere from 1/5 to 1/2.  [edit: The Volt only has a 40-mile electric range, so replacing its batteries won't be incredibly expensive.]

If they were all-electric, at least they'd have the redeeming feature of requiring almost zero maintenance.  But with the gasoline backup, you don't even get that.  [edit: The 100-mile-range Leaf is all-electric.]

As I've said before: If you commute so far to your job that an electric or hybrid vehicle makes economic sense for you, then you live too far away from work to claim you care about the environment.

Reply

Bob Wallace

71 Comments

  • 561 Days Ago
  • 07/28/2010

EV batteries...

The batteries for the Nissan Leaf have an expected life span of 10 years.  The Range Rover Liberty is claiming 300,000 miles/13 years.

During the new battery plant start a couple of weeks ago in Michigan it was stated that as soon as the plant got up to speed battery prices should drop to 70% of what they are today.

My guess is that ten years down the road when you need to replace your battery the cost won't be any worse than a transmission rebuild.  And your old battery will still have 80% of its capacity left which will make it valuable to utility companies for grid storage/smoothing.

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Bob Wallace

71 Comments

  • 561 Days Ago
  • 07/28/2010

Renault Zoe

The Zoe (100 mile range EV) is going on sale in Europe for less than $18,000. 

Then you rent the battery for $100 a month.

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Bob Wallace

71 Comments

  • 560 Days Ago
  • 07/29/2010

Just found this...

"Forecasted Cost of a Typical Electric-Vehicle Battery."

" In 2009, the DOE's Vehicle Technologies Program says, the cost was around $33,000. This will drop to $10,000 in 2015 and then keep sinking, all the way to around $5,000 in 2021 and $3,000 in 2030. The weight of a 100-mile automotive battery will drop significantly, too, the DOE predicts, from around 333 kilograms today to just 55 kg in the 2020-2030 timeframe."

$3,000 for a ten year battery.  That's $25 a month.  (They are also forecasting a 14 year battery life in the next few years.)

A weight drop from 333kg to 55kg means 1) more range with the same capacity battery, less mass to move, and/or 2) more range by installing more less-heavy batteries than now possible.

http://www.whitehouse.gov/files/documents/Battery-and-Electric-Vehicle-Report-FINAL.pdf

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Bio

Kevin Bullis is Technology Review’s energy editor.

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