GM is cutting the price of its electric Volt by $5,000 image

The Detroit manufacturer is trying to entice buyers who are still wary of electric vehicles and follows the trend of lowering prices in the face of lagging consumer demand.

The automaker has decided to cut down the price of its plug-in electric Volt by $5,000, which equal to a decrease of 12.5% of the base price, from $39,995 to $34,995. The price cut comes just weeks after the automaker announced a $5,000 giveback on the 2012 Volt and $4,000 on the 2013 model. As a reminder, the 2010 Volt acquisition cost was $41,000.

“The lower price and cost savings from driving on electricity provide Volt owners an unmatched balance of technology, capability and cost of ownership,” said Don Johnson, U.S. vice president, Chevrolet sales and service. “We have made great strides in reducing costs as we gain experience with electric vehicles and their components.”

The new price will be effective once the 2014 Volt arrives in dealer showrooms this month, GM said. There will be two additional colors on offer — Ashen Gray Metallic and Brownstowne Metallic — and a leather-wrapped steering wheel. Otherwise, there are no other changes.

GM expects the lease price will increase from $269 on the 2013 model to $299 for a 2014, considering the lease price is actually the product of negotiations with lenders.
Volt sales in July were 3.3% lower than July 2012, at 1,788 units. For the first seven months of the year though, they are up 9.2 % from 2012, to 11,643. Sales jumped in June after GM introduced the new incentives.