GM's CEO, Ed Whitacre Announces Volt Will Sell In the Low 30's

Here is shocking news to be sure. It was originally speculated that the Volt's MSRP would be $40,000, reduced to $32,500 when factoring in the US Federal tax break. Now, GM is stating the Volt will retail in the low $30's which would put the cost to customers around $25,000. If this is the case, then it opens the vehicle to a much, much broader market. We may be tempted to purchase one if it can be had for $25,000.

From GM-Volt.com:

The Chevrolet Volt will be an expensive car to produce. Cutting edge technology and large proprietary lithium-ion battery packs make up the lion’s share of cost. Another speculated element of cost is factoring in the possibility of some degree of warranty-required battery replacements.

Long one of the most talked about Volt topics is what its price will be when it arrives later this year.

In the very early days of 2007, GM vice-chairman Bob Lutz had mentioned a goal of under $30,000. Eventually that target appeared to be moved higher, though never official confirmed by GM.

Along the way, the federal government passed legislation that will give initial Volt buyers a $7500 tax credit , and more recent media speculation has put the price closer to $40,000.

However, there have been new reports that GM may surpise the world with a lower number.

Also, though GM has plans to take the cost out in coming generations, it is often reported that the automaker will have to take a loss on each car of the first generation.

Now in an exclusive interview with GM-Volt.com, CEO Ed Whitacre speaks frankly on how much the Volt will be priced at, and for the first time ever says GM will actually be able to make money selling them.

He was asked whether it was true that GM will lose money on every Volt they sell.

“We’re not in business to lose money,” he said. “We did enough of that already.”

The Volt “is going to sell in the low 30s,” said Whitacre. “We’ll get a margin on that.”