GM idles the Volt. This despite a $7,500 (regressive) subsidy to green peacock car purchasers, subsidies for suppliers and engineers throughout the production chain, a government bailout of the company and an era of record profits for car companies. I can only shudder to think what comes next.
Next? The Corvolt, a sporty model that Ralph Nader will declare safe at any speed.
Is it cheaper to drive Volt? Sure it is. It uses ~10kWh to drive 40 miles (up to 80% of all daily commutes). 1KWh=$0.1, so the cost to drive 40mi ~$1. With charger efficiency, higher electricity rate,- still will not be more than $1.5. Next comes! Prius! –same distance =~1 gallon or ~$4. Reverse the situation: A gas station would be stormed if it sells gas for $1.5/Gallon (what about black Friday crowd every year trying to save $20?)
Will we have buying frenzy if Volt costs $10K– I bet we will. Even for $20K. At $25K the situation gets murky, but probably the crowd will still be impressive with this $7500 “regressive subsidy”.
The major cost for Volt is a battery pack,- current costs is ~$(1000-1300)/KWh, that makes the battery alone ~$20,000! It is still novel and delicate technology so some car’s resources (energy+weight=cost) are devoted to service the battery.
The industry goal is to achieve $300/KWh, making the battery cost ~$5K. If GM did not kill EV1 over a decade ago and would not start Volt from scratch we could be there ($5K/battery 20K/car) already. But it could not work either, according to Kramer from Seinfield, these greedy capitalists will jack up price to double its profit bringing Volt costs to the same $40K.