Since the inception of the Chevy Volt program in 2006, GM's goal has been to offer the range extended electric vehicle for a sub-$30,000 price point. That level has always been seen as the threshold to get high-volume sales of an electric car. Unfortunately, lithium ion batteries remain far too expensive to be able to sell the car at that price profitably. GM has always indicated that they expect the car to remain a money loser in the early years of production, but given the financial difficulties of all the domestic automakers, they can only go so far in subsidizing the car.

In order to help make the Volt less financially painful both for the manufacturer and consumers, GM is lobbying Congress to pass a new batch of tax breaks for plug-in vehicles. There has been on-going debate in Congress for some time about tax credits for plug-in hybrids and GM wants to make sure that ER-EVs are specifically included. A credit of $7,000 for the purchase of such a vehicle seems to be the target point. According to GM sources cited by Automotive News (subs req'd) a $30,000 price seems unlikely unless tax credits are passed by Congress and the White House. The House of Representatives already passed a bill last week that included PHEV tax breaks but the White House has threatened a veto. More than likely, nothing will happen until early in 2009 when a new President is in office.

UPDATE: typo fixed

[Source: Automotive News - Sub. req'd]

Click the Volt for a high-res gallery

Round and round we go... where we stop, nobody knows! That sounds like an apt description of the merry-go-round that is the Chevrolet Volt, especially when pricing and delivery date are concerned. Perhaps what we are witnessing in this case is the first truly transparent product launch in history. Do major shifts like this happen with all vehicles, or is the new technology needed to make the Volt a reality causing pricing headaches for GM management? Maybe it's all of the above. Whatever the case, GM CEO Jim Wagoner has been quoted on Forbes as suggesting that General Motors will be selling an electric car for less than $30,000 by the year 2010.

Another possible explanation for this pricing confusion could involve the upcoming plug-in Saturn Vue. How can we be sure that Wagoner was referring to the Volt when he cited the pricing and deadline of the electric vehicle? We can't. It's possible that GM could have a plug-in Vue ready for the market in 2010 with an electric-only mode, making it an electric car of sorts. We'll just need to take a wait-and-see approach when it comes to the Volt's, and the Vue's, debut.

[Source: Forbes]