For months I have eagerly awaited the official release of the Chevy Volt. Today, marking the 100th anniversary of GM, the production version of the vehicle was introduced. GM is determined to make the car a success, and their future as a company is at least modestly tied to that factor.
The concept behind the car is actually fairly elegant. Simply put, it is an electric car with an onboard generator. "Traditional" hybrids combine a gas engine and battery assist to power the drivetrain. In the Volt, the battery powers the drivetrain and the gas engine powers a generator that charges the battery.
For trips less than about 40 miles, the battery is sufficient and the car uses no gas. As the distance between charges increases, fuel economy decreases. After the car is fully dependent upon the generator to charge the battery, it becomes similar to other hybrids, with a fuel economy of about 50 mpg.
My excitement over the potential of the vehicle was tempered by the unknown cost. Reasonably priced, the Volt could catapult GM back into a lead position in the automotive industry. If the price was out of the reach of most Americans or resulted in a long pay-back time, teh Volt's potential would quickly fizzle to nothing.
Unfortunately, it appears the latter will be the case. The current intent is to price the Volt at about $40,000. At that price, most interest will come from people more interested in "saving the world" than saving actual money.
Assuming someone puts on roughly 80 miles between charges (100 mpg), gas costs $4.50/gallon, and a 30 mpg vehicle is available for $25,000, the payback period for the Volt would be 10 years. Even at $7/gallon, the payback is well over six years, longer than most Americans own a car.
Locate a 30 mpg vehicle for $18,000 and you can buy gas at $4.50 for nearly 14 years before the Volt would have been a better purchase.
GM has the potential to electrify the country with the Volt. Based on the news, today, they may find the battery dead before it even hits the market. Time will tell, though, and I will be keeping both eyes open as the vehicle gets closer to full production. Perhaps they'll find ways to drop the price and reenergize prospective customers.
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