Volt won’t power GM past Toyota
The Chevrolet Volt may wow the media when it arrives in dealerships next year, but the Obama administration believes the plug-in electric car will cost too much and won’t attract enough buyers.
“While the Volt holds promise, it will likely be too expensive to be commercially successful in the short-term,” the administration said in its evaluation of General Motors Corp.’s restructuring plan. The car “is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable.”
The analysis was a significant blow to GM. Since the vehicle’s unveiling at the 2007 Detroit auto show, the Volt has helped GM reshape its image as a more environmentally conscious company. GM parlayed the Volt into massive media coverage and has invested heavily in the program…
The government audit of GM’s restructuring plan suggested the carmaker had invested too much time developing the Volt to leap frog Toyota’s lead in green technologies.