GM lowered the price on its lead electric vehicle so much that it can compete with compact gas guzzlers. The only catch is that the automaker doesn’t have forever, writes JMAGuilford:
on one front. The $57 billion Detroit automaker run by Mary Barra lowered the price on its lead electric vehicle on Wednesday, taking it down so much that it can compete with compact gas guzzlers. As Tesla slowly ups the price on its models, GM might be able to use itsChevy Bolt to do what no legacy carmaker has managed: steal Tesla’s thunder. The only catch is that Barra doesn’t have forever.
Tesla’s boss Elon Musk has long been skeptical of the Bolt, claiming in 2017 that the structure of government subsidies meant GM would never produce more than around 25,000 vehicles a year. And, indeed, GM’s U.S. sales topped out around there in 2021. Subsidies that expired in 2020 partly got in the way. But the carmaker was also forced into a total shutdown of manufacturing last year over battery issues, setting the Bolt back.
With an 18% price cut, the entry-level Bolt is about in line with the average price Kelley Blue Book puts on compact cars in April. It’s possible that GM’s per-unit profits don’t budge, if customer purchase incentives are rolled back, say, and the price cut is just illustrative for prospective car buyers. Still by lowering the sticker, Barra effectively starts a price war.The aggressive move shows just how badly she needs to make headway.
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