Originally posted on CleanTechnica
The Chevy Volt has been a politically divisive vehicle since its inception, and while many claims against it don’t hold up to scrutiny, there were two legitimate criticisms against the Volt. One was its high price tag, and the other was that GM sold the Volt for as much as it cost them to build it. But that won’t be a problem with the 2016 Chevy Volt, reports GM Authority.
During a roundtable press conference, CEO of North America Mark Reuss told reporters that engineers had figured out how to shave about $10,000 in production costs from the 2016 Volt. When it first came out, the Volt cost every dollar of its $39,995 MSRP, and though a $5,000 price cut did help alleviate the high cost argument, GM still wasn’t making money.
When you get right down to it, profitability is the only true marker of success that big companies care about. The reason why American automakers pander to the pickup crowd is because trucks have huge profit margins. The Ford F-Series has reportedly earned the Blue Oval some $50 billion in profits alone…and it’s only sold in North America!
With GM assuring the press that the new Volt will make the company money, the question becomes, how much of those savings will be passed on to the customer? Amid all the exciting new information and flashy displays at the Detroit Auto Show, GM failed to say just how much the 2016 Chevy Volt would cost.
Will the 2016 Volt go upmarket, now that buyers have shown they’ll pay a premium for a practical plug-in car? Or will GM cut costs and features and bring the price point down another notch?