- The federal government did not have a hand in setting the Chevy Volt's price.
- Volt price is set at $41,000.
- The government is the major shareholder in GM.
WASHINGTON — The federal government may be heavily involved in the affairs of General Motors, but it did not have any input on the controversial pricing of the 2011 Chevrolet Volt, administration officials said on Thursday.
"We do not tell General Motors what to charge for its cars," said Ron Bloom, senior advisor to the treasury secretary for automobiles, during a press briefing at the White House on Thursday. "We don't tell them what to charge for the Volt. We're not going to tell them what to charge for the [Chevrolet] Cruze.
"General Motors has an extremely competent management, supervised closely by a board of directors. We are confident that they are carefully thinking through what the price of the Volt ought to be, as much as they are with the price of the Cruze or the Cadillac CTS would be. And exactly that sort of decision is exactly what we have resisted the temptation to do."
The government is the major shareholder in GM following a government-led bankruptcy of the automaker last year. GM said this week that the Volt would start at $41,000, a premium price that has triggered an Internet debate among consumers and auto critics. The Volt price is priced $8,000 higher than the 2011 Nissan Leaf, which has prompted comparisons, even though GM insists that the Volt is in a class by itself.
"Wouldn't it make sense to somehow influence the cost of the Volt to make it more competitive?" asked one reporter during the briefing.
"The problem with that slippery slope is it never ends," said Bloom. "Because I could equally make the argument that General Motors ought to also charge 2.6 percent less for the Cadillac or 3.1 percent less for the Cruze. Every management decision can be second-guessed. And we made a very firm decision up front that either we were going to run the company day to day, or we would find the finest management and the most independent, hard-nosed board of directors we could and asked them to take on that responsibility.
"We made the latter decision. And if we violate it on one thing that seems important to us, then we will violate it on everything. And then I think we're — then it is Government Motors."
President Obama is set to visit the GM plant that will build the Chevrolet Volt on Friday.
Inside Line says: Don't expect the government to step in and slash the price on the Volt. — Anita Lienert, Correspondent
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tbone85 says:
09:14 PM, 07/30/2010
"Really? What do you call the $7,500 tax credit the government is putting on the hood of each Volt with our tax dollars?"
I'd call it the same as the tax credit that the Leaf and other EVs get put on their hoods.
adamb1 says:
12:07 PM, 07/30/2010
"Inside Line says: Don't expect the government to step in and slash the price on the Volt. - Anita Lienert, Correspondent"
Really? What do you call the $7,500 tax credit the government is putting on the hood of each Volt with our tax dollars?
That makes the price competitive with similarly sized, highly optioned Camry's, Accords, Fusions, Altimas, etc.
Don't worry, Obama is working on the Tax and Cap angle to assure that the cost of gas rises enough to make these vehicles competitive.
radiowc says:
11:57 AM, 07/30/2010
Well, true ...350 us cheap for lease, don't forget... lease u have limited mileages that you can drive and will get penalty if you go more than that... unless you just keep your car at home and just look good and then later on give it back to GM. Besides now the gas prices is not like 4 or 5 bucks per galon. People are still afford it. with new 4 in-lines cylinders cars now can easily get 35 MPG which wasnt bad and u get Wow with the performance,...not sure abt the volt...maybe just like driving a golf cart :)
goaterguy says:
11:33 AM, 07/30/2010
The Volt is $8k more than the Leaf. Well IMHO that's a low price to pay for a car than can be the only vehicle in a house.
Try to do a 200 mile trip on a Leaf.
I understand that the main purpose of both the Volt and the Leaf are commuter cars for the cities but the added advantage of a gas engine makes the Leaf look like a toy next to the Volt and to me, an extra $8k is a deal.
bodyblue says:
11:19 AM, 07/30/2010
Complete and total BS....when Barry wanted the CEO of GM gone, he was gone. I dont believe a thing from either GM or Barry. Remember the outright lie about paying the loans back????
foxgtr says:
11:01 AM, 07/30/2010
What I don't understand is all the uproar over the sticker price of the Volt. There is a $350/month lease on the vehicle. That is the way to go. In 3 years, you give the Volt back to GM, and pick up something else, or the next generation of the Volt. Then, if you want to purchase it, you can. No one is going to step up and pay 41k for it when it can be leased for so cheaply. Plus, you only get the $7,500 if you personally have a tax liability. If you don't, you don't get the full $7,500. By leasing the car, you are guaranteed the money as a rebate against the lease. GM takes care of the tax liability.