The GM Volt Revisited

Awhile back I wrote about GM's new hybrid, The Volt (here's my write up: http://daily-cynic.blogspot.com/2009/08/getting-away-from-politics-for-minute.html)

As those who know me personally know, I am a huge car guy and, more specifically, an avid Audi enthusiast (have been since I was 16 with my first A4 which was followed by my father's S6 and now my new S4). The reason I mention Audi in relation to GM's Volt is that Audi of America President Johan de Nysschen just came out with a prediction that the Volt will "fall flat" and "the federal government, having publicly forced GM to develop electric cars, will subsidize the Volt to save face and boost sales." See the entire article here: http://editorial.autos.msn.com/blogs/autosblogpost.aspx?post=1247701 .
You know what? He's 100% right. I pointed out in my article on the subject that the Volt had no advantage over existing hybrids like the Prius or Honda Insight. I didn't really go into why hybrids are terrible investments and not the best choice if you are a true environmentalist but de Nysschen goes as far as saying people who buy hybrids over more fuel efficient, practical, and powerful diesels are "the intellectual elite who want to show what enlightened souls they are" (as Jay Leno says "here in America, we like to make known the good deeds we are doing annonymously"). He hit the nail on the head again. The big draw to hybrids is PR. People value the appearance of being environmentally friendly over actually being environmentally friendly. Hypocrites, all of em.

The question for the Volt is are the faux environmentalists willing to pay up to $15k over the price of Japanese hybrids for an American product? My answer: No. Japanese cars usually have a higher snob appeal than American cars. The hierarchy of snob appeal for cars goes like this: Italian>German>British>Japanese>American, at least in my book. So I sincerely doubt the Volt will take any significant market share away from Toyota or Honda with the Volt. If there were charging a lower price than the Japs, then it might, but definitely not when GM is selling at a premium.

The final question brought up by de Nysschen is that of "the federal government, having publicly forced GM to develop electric cars, will subsidize the Volt to save face and boost sales." I think this will make or break the Volt because it will effectively price the Volt below its Japanese rivals and that is probably enough to shift sales to GM. Judging by our government's recent actions (and the fact that Boh'Rock feels he has the right to run GM), this subsidy is a pretty safe bet so you can expect to see some solid sales numbers as a result.

The Volt is already a failure in my book even if it does sell well as a result of government intervention.