The Auto Writer

General Motors is hinting that the starting price for the Chevrolet Volt will be about $40,000 when the car is finally ready for customers in late 2010 or early 2011, but the company has a problem with that figure. Originally, GM expected the Volt to sell for about $30,000, but battery production costs have jacked up that figure by nearly ten grand.

The higher amount has GM worried as they believe customer demand will hinge on whether the car can come to the market at a price that is affordable. Thus, the company is asking that Congress consider a tax credit of as much as $7K per vehicle to aid their cause.

GM isn’t alone in working with policy makers to come up with some sort of credit for buyers who opt for a plug-in hybrid. Toyota, Nissan, and Ford are each heavily investing in this technology and would benefit if the next president makes this issue a cornerstone of his environmental policy.

Current buyers of select hybrid models are eligible for tax credits but that amount is subject to change depending on the number of hybrids an automaker sells. For instance, owners of the 2008 Ford Escape and Mercury Mariner SUVs, for example, receive a $2220 credit for the AWD vehicle or $3000 for their FWD ride, while Toyota/Lexus owners no longer receive any credit.

Taking advantage of the election year and the importance the two main candidates (bye, bye Hillary) have placed on environmental issues, GM’s request for a $7000 per vehicle tax credit will likely receive attention from Congress. Although President Bush might not go along with whatever legislation is eventually introduced on behalf of the Chevrolet Volt, the next president will be more inclined to aid buyers of the plug-in hybrid.

GM recently reached an important milestone with the Volt as the test mule vehicle on its Milford proving grounds consistently goes 40 miles between charges. A tiny three cylinder gas engine will work to recharge the battery, but unlike current hybrids, only the electric motor will power the wheels.

(Source: Edmunds.com)

Further Reading

Chevrolet Volt Hits the Road With Li-Ion Batteries And 40-Mile Range

Summary of the Credit for Qualified Hybrid Vehicles

Volt’s No. 1 priority for GM

Chevrolet Volt photo courtesy and copyright GM Corp.