Volt Pricing to be Set on Tuesday... Will the Volt Flop Before it is Produced?

We'll finally have a clue as to whether or not the Chevy Volt; often cited, advertised, overexposed, etc....; will succeed or not. The MSRP will be announced Tuesday at 12 PM ET on July 27. Ever since the Volt was a prototype, this has been the biggest question on everyone's mind. It's all well and good to make a prototype that gets great reviews. It's even better when a plug-in hybrid is designed as a production vehicle. Even in bankruptcy, GM has promised the Volt for the fall of 2010 and has kept to that timetable. It's been pretty remarkable.

And along the way, GM has garnered praise for its forward thinking and the progress it is making to move the US away from its oil dependence. But all that could backfire on Tuesday if GM announces a price and everyone realizes this car was made only for millionaires and will be a fringe luxury car. Green-washing will be the claim and it will stick.

What is the Volt?
If you don't know it (and what rock have you been hiding under?), the Chevy Volt is GMs upcoming Extended Range Electric Vehicle (E-REV). GM promises the Volt will travel 40 miles on all electric power, but the small gas engine will 'extend' the range for another 300 miles. Your mileage will vary depending on driving conditions, but that's the basic idea.

After you get home, you can plug the car back in and fully recharge the battery pack, giving you another 40 miles of all electric drive.

The Competition Already Exists
The Volt may be the first production plug-in hybrid vehicle to hit the road to truly make an impact. Others exist, either in post-production re-work or in smaller companies making a few hundred a year. But the Volt will the first plug-in from one of the major auto maker who's willing to make tens of thousands a year.

So it's easy to see why the price tag for the Volt can be seen as the comparison point for all upcoming plug-ins. But it already has some competition. Since plug-in hybrid electric cars can be thought of as the midway point between all electric and hybrid electric vehicles (EV and HEV), GM has to keep the price lower in order to compete with the people who are already buying a Toyota Prius (mid $20-30,000) and the electric Nissan Leaf. I'm sure it won't exceed $40,000, not when the all electric Nissan Leaf was set at $32,780. With federal and state tax breaks, you can buy an all electric car for about $20K.