Chevrolet's plug-in hybrid still likely to cost in excess of $60,000
The Holden lion badge must be worth its weight in gold.
Australians will pay up to 50 per cent more than Americans do for the Chevrolet Volt plug-in hybrid car when it goes on sale as a Holden next year – even though the Australian dollar is expected to remain stronger than the greenback for some time.
The Volt starts at $39,995 in North America, but will likely cost close to $60,000 in Australia when it arrives in Holden showrooms mid-2012. The cars games will effectively be the same except for the Chevrolet and Holden badges.
"We're yet to announce price but it will be a premium product," said Holden spokeswoman Andrea Matthews.
As with many emerging technologies, the Volt – which can drive up to 64km on battery power before the petrol engine provides a further 400km of driving range – is not yet profitable, says the communications manager for the Volt in North America, Rob Peterson.
Visiting Australia to help Holden prepare for the launch of the car, Peterson told motoring.com.au: "It's not profitable at this stage but there are plans in place to get there."
He said increased production – and a reduction in the cost of technology such as batteries, motors and electronics – will bring the manufacturing cost down. But, he warned, a cut in the retail price would not automatically follow.
"Cost reduction and pricing are two entirely different mechanisms," he said. "A lot of people think 'Oh, if you're saving costs, it means it comes right to me', but that's not always the case."
When asked how long it would take for a car like the Volt to be similar in price to the Holden Cruze small car – with which the Volt shares its underpinnings – Peterson said: "I don't think you’re going to see the price go down to that level because the technology is up there.
"The Volt is intended to be more than the Cruze. The content level in the Volt is higher than that of a Cruze. As the technology continues to advance and we continue to advance it, it still probably will remain an aspirational vehicle."
When asked how long before the Volt would become profitable, Peterson said: "I wouldn't want to guess. A lot of it depends upon … the technology and the ramp up and the market demand."
But despite more than tripling production between now and next year, the retail price will remain at luxury-car levels.
In the first six months of retail sales in North America, General Motors found that the Volt appealed to drivers of Japanese and prestige cars.
"Right now 75 per cent of the people that are trading in vehicles are coming from brands that are non-GM," Peterson said.
Two of the top three vehicles traded-in were Toyota Prius and Honda Civic hybrid sedans, but the next biggest group of customers were owners of luxury cars. "About one fifth of the people coming in exchanging cars are exchanging in small luxury cars: BMW, Mercedes and Lexus," he said.
"Because it's the most advanced technology vehicle out there, people are viewing it more as an aspirational vehicle. They're going to be the first to have it and they're willing to pay the premium."
He said cars like the Volt "feed their image of the early adopter [of technology]".
"These are the people that … just want to be heard, they want to be the first, they want to give advice, they typically ... wait in line for the next generation iPad, and they typically have a little bit more disposable income than the rest. And that's probably who our audience is."
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