Will American Buyers Subsidize The Chinese-Market Volt?
GM is announcing the arrival of the first “driveable Volt” in China, in a move that GM’s China boss Kevin Wale calls a sign of The General’s “long-term commitment to bringing our industry-leading technology to China.” And despite a distinct lack of Chinese demand for green vehicles, a recent survey that shows as much as 75 percent of Shanghai’s drivers plan to purchase an EV in the next three years (not to mention government plans for increased EV subsidies) is giving GM hope that its plug-in will take off there. But in order to achieve Chinese-market success with the Volt, GM will likely have to offer the vehicle at a price point well below its US-market MSRP of $41,000.
At about twice the price of the Chinese-made F3DM, the Volt has an uphill battle ahead of it… unless GM prices the Chinese version below the US price. But then The General has to worry about the perception that it’s forcing US consumers to subsidize Chinese sales of the Volt. Considering that American taxpayers bailed out GM just last year, that would make for some cold thanks. But that’s what you get when you bail out a multinational company on patriotic grounds, right?
More by Edward Niedermeyer
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Speaking of government subsidies, the Volt will be selling at a loss, in the U.S. as well, according to Bob Lutz when he appeared on Late Night /David Letterman.
I am guessing that it will be very low volume and the price won't be too much if any lower. It will be interested to see if this goes off of a lease in China.