Chevy Bets on High Gas Prices

by Greg Pollowitz

USA Today:

General Motors now plans to more than double its production of the Chevrolet Volt extended-range electric car.

And GM is adding a second shift and 1,000 jobs at the Michigan plant where the plug-in car is made.

The moves come as high gas prices are already starting to shift demand to smaller cars, hybrids and electrics like the Volt. Never mind that the Volt lists for a hefty $41,000. It is GM’s biggest technological achievement, capable of driving 25 to 50 miles on electric power alone before its gas engine kicks in to recharge the battery.

All year long, GM has talked about trying to produce 10,000 Volts this year. So the talk of increasing production to 25,000, as reported by Chrissie Thompson of the Detroit Free Press, comes as a surprise. Next year comes the big jump: as many as 120,000 Volts.

Stupid. Nobody who worries about gas prices is going to plunk down this much money on a Volt when cars with similar m.p.g. numbers can be had for half the cost. I don’t see how they ever sell 120,000 per year, unless we see some sort of mandate by the Feds to buy electric cars for their own fleets, which is entirely possible — and a waste of taxpayer money.

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