Volt Birth Watch 169: The Price Is Wrong
Having a hard time guessing the value of the Volt showcase? Join the club. Everyone knows what the Volt is by now, namely a four-seat, 230 mpg, extended-range electric sport sedan that’s currently under-budget. But what does that sell for? The closest thing to a consistent answer we’ve heard from GM on this point is zero profit at $40,000 a pop. Which is always quickly followed up with reminders that consumer tax credits will make the crucial difference in transaction prices. But what about those tax credits? EV World‘s Bill Moore relays the following message from an anonymous “former GM executive”
“Assume you will trade in your Prius when the Volt becomes available. The feds will probably put a $20,000 kickback on the price to move them. If they do not, Volt will not make it.”
We’ve already seen significant reductions in the cost of batteries even since the start of the Volt program. At this point, we’re hundreds of dollars below the $1,000 a kwh benchmark
For reference, $1,000 per kwh is the typical current cost for Lithium-ion batteries, according to Southern California Edison’s Electric Transportation Department. But thanks to heavy taxpayer investment in Volt battery suppliers, GM is claiming it can get prices down to $500/kwh in the next 12 to 18 months. Would Toyota VP Irv Miller like to comment on that?
I’ll buy all those batteries that anyone can provide me right now. Our numbers are about three or four times that, so maybe we’re missing something
Well, is he? Ford says the cheapest Li-ions they can find are $700/kwh and are located “in Asia.” Is GM lying or is there some world-class market distortion going on? Pick your poison.
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Geotpf-exactly. Toyotas reliability is always held to a higher standard. Hey, that's life at the top. Bunter
"Toyota/Panasonic have invested billions in a massive Li-Ion joint venture. " Exactly. They're way behind everyone else, just now starting to try to catch up on li-ion. But meanwhile, they have a *huge* NiMH infrastructure.