General Motors has cut the price of the 2013 Chevrolet Volt by $4,000 to boost stalling sales, slashing consumer cost from a starting price of $39,995.
Find out more about cost-savings by GM on the Chevrolet Volt.
General Motors has cut the price of the 2013 Chevrolet Volt by $4,000 to boost stalling sales.
Nearly three years after the Volt debuted, sales of the extended-range electric car appear to be hitting a wall, and the steeper incentives will make the car even costlier for GM.
The price cuts come in the form of incentives of as much as $4,000 for those buying 2013 Volts and up to $5,000 for 2012 Volts. Those incentives are in addition to a $7,500 federal tax credit and a $1,500 state tax credit for those who live in California.
With a starting price of $39,995, the final cost of a 2013 Volt could now be as low as $28,495 for non-California residents.
GM spokeswoman Michelle Malcho said there is also an incentive directed at lease customers, who account for the vast majority of Volt transactions. .
With a $2,399 down payment, customers can qualify for a Volt with a $269 monthly payment for a 36-month lease.
Volt sales declined 4.3% in May to 1,607 while industry sales increased 8.2%. Through the first five months of this year, Volt trails both the much more expensive Tesla Model S and the smaller, less-expensive Nissan Leaf.
At one time, GM expected to be building between 60,000 and 100,000 Volts annually, but with sales this year through May of 7,157, that goal has been reassessed.
“We have inventory we want to move to get ready for the 2014 model year, and there is a lot of competition in the marketplace,” Malcho said.
Chevrolet dealers have about 140 days’ supply of Volts, about twice the preferred industry average.
GM already loses money on the Volt and will lose even more as it raises incentives. It costs GM as much as $75,000 to produce a Volt, according to some analysts.