Desperate GM slashes Chevy Volt price by $5,000

Chevy Volt (Photo credit: John Biehler)

General Motors announced it would trim the price of the Chevrolet Volt plug-in by $5,000. For 2014, the “extended-range electric vehicle” will carry a $34,995 sticker – including delivery charges – 12.5 percent, less than what GM was demanding at the start of the 2013 model-year.

“Dropping the Volt's price removes one of the primary consideration barriers for most buyers,” said Karl Brauer, senior analyst at Kelley Blue Book.

As with most of the new plug-based vehicles on the market, Volt will also qualify for a $7,500 federal tax credit, as well as additional incentives in states like California and Colorado, GM officials bet that will further enhance its appeal.

Volt clearly needs a lift. Although sales rose 9.2 percent for the first seven months of 2013, they lagged behind the overall growth of the U.S. new car market – as well as sales gains by key competitors such as the Tesla Model S and the Nissan Leaf battery-electric vehicles. Volt had outsold both last year, though the Chevy plug-in still missed it original target of 45,000 U.S. sales by a wide margin. Read more >>