2014 Chevrolet Volt gets massive price cut ($5000)

GM Chevrolet Volt
© GM

Mid $20k range after all incentives

After making the Chevy Volt plug-in hybrid more affordable with cash incentives and cheaper lease options, GM is now following in the footsteps of other plug-in makers like Ford (slashed the price tag of the Ford Focus electric by $4000) and Nissan (cut the price of the LEAF electric car at the beginning of the year) and officially reducing the price of the 2014 Volt by $5000.

Chevrolet Volt© GM

This means that the sticker price goes from $39,995 to $34,995 (which includes the $810 destination fee). If you count the $7,500 federal tax credit, that's $27,495, and on top of that you could add whatever incentives your state has.

And if you really want to go all the way down the rabbit hole, add to that gasoline savings (they could be substantial if you mostly drive short distances -- this guy drove 12,000 miles on 26 gallons)....

Chevrolet Volt first owner Jeff Kaffee© GM

To explain the price cut, Don Johnson, U.S. vice president, Chevrolet sales and service, said: “We have made great strides in reducing costs as we gain experience with electric vehicles and their components."

I'm sure that's not the only reason. Competition certainly played a role, with more plug-in models on the market and many price cuts at competitors. Nobody wants to be the high-cost seller and lose market share, so we should see most PHEVs and EVs be priced fairly similarly unless they offer something truly different (ie. the Tesla Model S offers more range, performance, and luxury, so its higher price tag isn't surprising).

Note: It's not the 2014 model in the photos. It's not clear yet what the differences will be between the 2014 and the previous models, but it's probably safe to assume that changes will be minor.

Via GM

See also: Tesla Model S grabs 8.4% of large luxury car market in first half of 2013

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