GM Slashes Price of 2014 Chevrolet Volt by $5,000
- The 2014 Chevrolet Volt starts at $34,995, reflecting a $5,000 price cut over the 2013 model.
- GM noted that pricing on the 2014 Volt could start as low as $27,495, once a federal tax credit is applied.
- The monthly lease price of the Volt has increased from $269 to $299, GM told Edmunds.
GM noted that pricing on the 2014 Volt could start as low as $27,495, once a federal tax credit is applied. The 2013 Volt starts at $39,995, including shipping.
The monthly lease price of the Volt has increased from $269 to $299, GM told Edmunds. "The lease price change is for the 2014 model only," wrote Michelle Malcho, a GM spokeswoman, in response to an e-mailed query. "We expect them to be in dealer showrooms by the end of the month."
GM said in a statement that it has made "great strides in reducing costs as we gain experience with electric vehicles and their components."
The automaker said the Volt's lower price is expected to increase consumer interest in the Volt by aligning it more closely with comparable vehicles researched by online shoppers at auto information sites such as Edmunds.
"The Volt's lower price will broaden its exposure to price-sensitive prospective buyers using these sites to search for a plug-in electric vehicle or a gas-powered alternative sedan," GM said.
The new Volt pricing strategy reflects increasing price competition on electric vehicles and plug-in hybrids.
A month ago, Ford cut the price of the 2014 Ford Focus Electric by $4,000 to $35,995. The 2013 Nissan Leaf got a $6,400 price cut in January. The 2013 Leaf starts at $29,650. Nissan has not announced 2014 Nissan Leaf pricing.
"GM is getting with the times, said Michelle Krebs, an Edmunds senior analyst. "Nissan had to re-price the Leaf. Same for Ford with the Focus EV.
"Unless they are shopping for a Tesla, consumers want electric and plug-in hybrid vehicles at prices competitive with other vehicles without the advanced technology. This price cut, combined with the tax credit, puts the Volt more in line with mainstream midsize sedans, for example. It should help bolster Volt sales and make it more attractive to the Leaf and Prius Plug-In shoppers who take a look at the Volt."
There are modest changes for the 2014 Volt, besides the price cut. GM is introducing two new exterior colors, Ashen Gray Metallic and Brownstone Metallic, and a leather-wrapped steering wheel.
Edmunds says: GM clearly is encouraging consumers to buy the Volt, as opposed to leasing it, with the new pricing strategy.