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.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GM draws target on Tesla with EV price cutElon Musk’s carmaker stepped back from an ultra-low cost vehicle. But with GM slashing the price on its Bolt, the Detroit automaker has made a big move. Now GM can use its low sticker price to grab market share. It has little to lose – except for cash, which eventually runs out.
Read more »
Autoworker Union Accuses GM Joint Venture of Denying Access to Organize WorkersThe United Auto Workers union is accusing a new General Motors joint venture of denying its access to workers to conduct a preliminary organizing vote.
Read more »
GM working on tech to eliminate motion sickness | Car News | Auto123GM wants to tackle motion sickness, especially in autonomous vehicles, and it has filed a patent application to do so. Auto123 has the details.
Read more »
GM trademarks Chevrolet Corvette Grand Sport, againIt looks like the Chevy Corvette Grand Sport will be back, but could it be a hybrid this time?
Read more »
Elon Musk tells SpaceX and Tesla workers they must return to the office full-time | EngadgetElon Musk tells SpaceX and Tesla workers they must return to the office full-time
Read more »
Musk Says Tesla Staff Can ‘Pretend To Work Somewhere Else’ Following Leaked Emails Ending Remote WorkMusk said in an apparent email to Tesla's executive staff that those wishing to work remotely must work “for a minimum” of 40 hours a week in the office, or they must leave the company.
Read more »