General Motors still has some surprises in store when it comes to its highly-anticipated Chevy Volt. The company says it will announce something big on Jan. 7 during the North American International Auto Show in Detroit.
There are several things this could mean. First, the company could put a definite date on the car’s release next year. So far, we know that the hybrid-electric vehicle will launch first in California before the end of 2010, but nothing more specific. Second, GM might announce that the assumed price point has dropped.
Right now, the estimated pricetag is close to $40,000, still a stretch for middle-class families looking to buy a practical sedan. Much of the price is due to the very expensive lithium ion batteries that will keep it going. Right now, these batteries cost about $900 per kilowatt hour produced. Greentech Media reports rumors that this figure could fall to $500 per kilowatt hour. Even then, the full battery pack would cost $8,000.
With concerns that the batteries, like those in a cellphone, will degrade quickly over time, limiting driving range and top speeds, its unclear how many people will be willing to shell out for the first iteration of the car. It’s predicted that many prospective consumers will wait for the battery technology to be more refined.
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They won’t have to wait long for other competitors to release their EV and hybrid models either. Tesla hopes to have its Model S sedan in showrooms by the end of 2011, and both Mitsubishi and Nissan are working on bringing theirs to market in the next two years. So far, the public seems to have the most interest in the Volt, but it will need to keep people excited to maintain its theoretical lead in the market.
GM will be helped in this pursuit by $240 million in grants from the U.S. Department of Energy. Compact Power, the company making batteries for the Volt, has also received $151.4 million to make the car a commercial success as soon as possible.
