Chevy Volt - Target Prius

General Motors has stated in no uncertain terms that the Chevrolet Volt is on track to become a bona fide production model. The automaker’s reaction is likely in response to the chorus of cynical pundits who thought the vehicle was nothing more than a publicity stunt by the General to say, “Hey, we care about the environment, too!”


General Motors has stated in no uncertain terms that the Chevrolet Volt is on track to become a bona fide production model. The automaker’s reaction is likely in response to the chorus of cynical pundits who thought the vehicle was nothing more than a publicity stunt by the General to say, “Hey, we care about the environment, too!”

Nope, GM says it’s for real. Now that that’s established, let’s look at the reality the Volt’s going to face around its projected MY 2010 debut.
Toyota has announced that it will not have just one, but three Prius models. “Prius” will essentially become Toyota’s hybrid sub-brand. As many have noted, the Prius now out-sells all but the Chevy Silverado in GM’s lineup. Potentially multiply that by three, and it’s apparent Toyota isn’t resting on its green laurels.

So although GM may be projecting a low-volume initial production run for the Volt, it should be prepared to ramp up quickly should the demand warrant it. But high demand will be contingent on whether or not it offers the features people have come to expect of high-tech showcase vehicles.

Unfortunately, the Prius has set the bar pretty high. Maybe not from the strict enthusiast yardsticks of 0-60 time, quarter-mile, lateral acceleration, etc., but in terms of features, practicality, and styling. Speaking of styling, maybe the Prius isn’t the most breathtakingly beautiful vehicle on the road, but it’s definitely distinctive and different, and it seems that’s what hybrid buyers want, as witnessed by the relatively lackluster sales of conventionally-styled hybrid models (e.g., Honda Accord, Ford Escape, etc.).

So let’s look at what we know so far about the Volt, or what we can reasonably surmise. The styling of the concept is definitely a head-turner. Clearly different than most cars on the road and–importantly for Chevy–”bold and aggressive”, something that can’t exactly be said about the Prius’ somewhat dorky styling. If the production car can meet the promise of the concept by going up to 40 miles without using a drop of gasoline, it will definitely have an edge on the current Prius in the green department. Don’t think Toyota doesn’t have a few green tricks up its sleeve for the next-gen models, though.

In terms of practicality, it’s anyone’s guess. Certainly, the Volt’s high beltline and mail-slot window openings, along with the gargantuan wheels and tires, make some sacrifices of efficiency and practicality in the name of style. Count on some of the outlandishness of the concept to be toned down a bit for production. But it would be a mistake to totally eliminate all the swagger and style of the concept for production since that will likely be one of its strong selling points.

Price. Ah, the $64,000 question. Well, let’s hope it’s not that much. Prius has set the pricing benchmark for hybrids in the mid-20s. Here’s the dilemma that GM must face: Does it take a cold shower on profits for the first few years on the Volt in order to price it on par with the Prius, or does it intentionally keep the price high and production low the first couple of years to re-coup its money, then gradually lower the price to a more mainstream level? Personally, I think it would be a major tactical mistake on part of GM to price the Volt too high out of the chute.
First off, if it’s too expensive, sales will be a poor indication of potential demand if it were more affordable. Knowing GM’s sometimes inscrutable logic, the brass may say, “Well, we’ve only sold 10,000 of them at $50,000, it doesn’t seem like there’s much demand.”

$30,000? A little above the current Prius, but still in the ballpark, and still within reach of the bulk of the car-buying public’s pocketbooks.

Finally, equipment. GM absolutely cannot mess this up if it plans on competing with the Prius head-to-head. Toyota’s greenie champ is available with an in-dash nav system as well as Bluetooth, two items that are practically mandatory on any vehicle that has any high-tech image-leader aspirations. Yeah, yeah. OnStar is great and all, but it’s not everything. It seems GM is having a hard time grasping this. Sure, it’s great for unlocking your car when you’re locked out, calling 911, and making dinner reservations. But people don’t want to have to change their cell phone provider just to have the convenience of hands-free operation, or necessarily have to speak to someone every time they want to get directions.

So, in summary, if GM can make the Volt practical, relatively affordable, feature-packed, stylish and super-efficient, it has as good a chance as anything else of unseating the Prius from the seat of being hybrid monopoly king. If not, it may go down as being another interesting footnote in the history of America’s once-biggest automaker. I sincerely hope it will be the former.

Edward A. Sanchez

4 comments so far

Ed, your column misses an important difference between the Chevrolet Volt and the Toyota Prius. The Volt’s drive train is strictly electric. The gasoline engine in the comcept car only serves to charge the battery. In the future GM will be able to charge the battery with biodeisel, hydrogen fuel cells or some technology that hasn’t been invented yet. A person with a short commute can drive back and forth to work all week without using any gas at all. You’re right, GM MUST get this right. The Prius, afterall is 10 years old.

Rick
May 10th, 2007 at 2:06 pm

Rick, From what I’ve seen on the Volt, the E-Flex platform allows a variety of different engines, as you alluded to. I didn’t really get into the intricacies of parallel vs. series hybrids (such as the Volt). I was looking at it more from a marketing perspective. Series, parallel or otherwise, I think the big selling point for consumers will be the all-electric mode for the first 40 miles. If they have to fill up the tank (with hydrogen, biodiesel, E85, etc) once a month, rather than once a week, that’s going to be the other big selling point. The Volt could be a truly breakout hit. I’m eagerly awaiting its arrival in showrooms!

Edward S.
May 10th, 2007 at 6:22 pm

I agree with you that the price point must not scare people away. $30K should be approachable for most folks interested in the car. Then, the whole public introduction of the Volt cannot be too macho. I think the Volt ad campaign must highlight the greenness, and go very light on the “but it still looks sporty” side of things.

Mike
May 11th, 2007 at 4:07 am

Mike, I think the looks will sell themselves. People are going to be sold primarily on the practical benefits. Even though stats might not bear it out, I think given a choice, there are still a lot of people that would buy a environmentally-friendly domestic-brand vehicle over a foreign one, if price, features and benefits were roughly equal. I’m sure Chevy will play up the patriotism angle, but I hope they don’t over-do it.

Edward S.
May 11th, 2007 at 5:57 pm

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