U.S. Government: Chevy Volt Won't Save GM

In its Viability Summary of GM, the U.S. government stated, “While the Volt holds promise, it will likely be too expensive to be commercially successful in the short-term.”

The Volt, ” 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 Chevy Volt is expected to be released by the end of 2010 with a starting price of $40,000, which will likely hurts its volume. In the government’s audit of GM’s restructuring plan, the government stated that GM spent too much time developing the Volt to go against the Prius. Instead the government stated that GM should have been using the time to focus on building better small cars.

Full Story: Detroit News

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