GM Preparing $30K Volt Moon Shot To Combat Tesla

GM remains committed to electric and will introduce a natural gas-powered Impala. While the Chevy Volt technology is perfectly engineered for most drivers—who, after all, can drive as far as they want—Akerson concedes that GM has failed to change the conversation about electric vehicles. “I’ll take the hit for that,” he says. As Tesla’s market value began gaining ground earlier this year, heading past $12 billion, Akerson took note. A special team was set up to study how Tesla might disrupt the industry.

Although GM has hinted that it’s working on a next generation of electric vehicle, Akerson says it’s aiming for a compact car that can go 200 miles on a charge and carry a generator, too. While it will be similar to the Volt, engineers are working on generators that could run on gas, diesel, or natural gas. The increased electric range is coming, in part, from advances in battery chemistry. GM is planning to bring the model out in 2016, for about $30,000, according to a person familiar with the idea who asked not to be named because the plans aren’t public. It’s a project that the company doesn’t want to say much about but signifies how it’s been trying to move past inventing things to putting inventions into showrooms. “We want it to be a moon shot so we can surprise the competition,” Akerson says.
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TheSteve - 12/17/2013 2:39:08 PM

+2 Boost

In *MY* mind, GM has a reputation for making ordinary looking vehicles with cheap interiors, and they're not known for notable build quality, so what they rely on is a long feature sheet and a competitive price.

Until GM overcomes that stigma, I won't be looking to GM for my next car. The Volt is in principle a good car, though.

vdiv - 12/17/2013 4:22:32 PM

+1 Boost

"The Volt is in principle a good car, though."

Gasp! I am so teared up I'm not sure what to say :')

Ok, I'll just say this, the Volt is a good car in practice too. It has been for three years now. If GM really embraces the philosophy and technology behind the Volt and improves on it, folks will see GM in a new light.

carloslassiter - 12/17/2013 4:13:20 PM

+2 Boost

The best way I know to surprise the competition is to leak the information years before the new model hits the showroom.

TheSteve - 12/17/2013 4:58:29 PM

+1 Boost

vdiv: I believe if GM made the exterior sexy, the interior look like it was worth much more than it cost, and shook their "makers of ordinary stuff" stigma, then the Volt would generate decent sales numbers. A $30K version *might* attract a new market segment (those who don't think about the cost of replacing the batteries).

vdiv - 12/17/2013 5:49:09 PM

+2 Boost

Ok, nobody buys a car thinking about the cost of replacing the engine or the transmission. The Volt's battery is warranted for 8 years/100,000 miles (10 years, 150,000 miles in CA and NY). There are already Volts with over 120,000 miles on the odometer and their battery works just fine. It is reasonable to expect that the battery will outlast the practical lifespan of the car. In fact GM pampers the battery and uses it so conservatively that the opposite issue is in play. The 16.5kWh battery is only used for 10.8kWh and the thermal management system keeps it cozy.

In case it prematurely fails the replacement cost is on the order of a new transmission, and the repair cost (the battery is modular) is less. The actual cost or whether GM subsidizes it is unknown as no one has had to buy a new battery yet.

Starting at $35k with the $7500 federal tax credit the Volt is already cheaper than the $30k you speak of. If the Volt is leased (i.e. $2k down, $269/mo. 3yr./36kmi) the tax credit is already factored into the lease.

There is only one legitimate way to figure out if a Volt is good for you. Go and drive one.