GM has Broken Economics
The car manufacturer has dropped prices for its Chevy Bolt as demand grows...
General Motors made an announcement yesterday that the company will drop prices on its EV Chevy Bolt after sales had been halted for six months following a recall on faulty batteries.
Prices on the vehicle are being cut by nearly $6,000 and as much as 18% for the basic version (starting at $26,595 down from $32,495).
"This change reflects our ongoing desire to make sure Bolt EV/EUV are competitive in the marketplace. Affordability has always been a priority for these vehicles."
GM said in a statement.
GM said there are plans in place to build more Bolts this year than in any other year. Bolt sales in 2021 hit an all-time high of 24,828 vehicles. In April, production had resumed for the vehicle with sales also resuming earlier this year. In August, GM sent out a recall for Bolts (upwards of 140,000 vehicles) due to needing batteries replaced.
Advertising campaigns have been launched in April to win back customers once let down by fires in parked cars due to faulty batteries. Earlier in the year (February), the National Highway Traffic Safety Administration closed its investigation into the Bolt fires.
In the first three months of 2022, GM has reported selling just 358 Bolts which is down a whopping 9,025 in the same period just last year.
Congress’ extension of a $7,500 tax credit for EV purchases is also being lobbied very heavily by GM. Both Tesla and GM have hit a 200,000 cumulative EV sales cap and no longer qualify for the credit.
The pricing change was reported earlier by the Verge.