Electric car MSRP

[start99]

While I was at the Chevy dealer buying a used car, I looked at a 2012 Chevrolet Volt on display with a "$40,000" MSRP.

I mentioned to the saleslady that the price was high. She said there's a lot of technology in the car.
I replied that I wondered how the Model T price would compare in relation to the
average income of that day. I've heard it said that the Model T was affordable to the "general public". And at that time, it also represented new technology.

She said there is a "tax credit" of x dollars. I said it would be more of an incentive if those dollars were actually a discount on the price.

I'm wondering who is going to pay this much for a small passenger car with many question marks. Has GM done appropriate advertising? Would another body type appeal more to consumers with that much spending money? If this car doesn't sell, then what?

[shorod]

My father in-law received his Volt the week before Thanksgiving and he let me take it for a drive. Through the drive and talking with him about the charging system and configurability I would agree there is a lot of technology in that car. I guess compared with other new cars I wouldn't say the Volt is exceptionally high. I'm definitely not a fan of GM, but I could see myself driving something like the Volt for my daily commute. I'd still need my gas hog SUV for pulling our camper, but for probably 95% of my driving, the Volt would satisfy my needs.

-Rod

[vgames33]

I've heard the the Volt is sold at little to no profit. I can't verify this, but it seems viable. They were looking into a Cadillac on the same platform that could justify a higher price/profit margin.

[MagicRat]

Originally Posted by start99

I'm wondering who is going to pay this much for a small passenger car with many question marks.

Anybody who has done college-level "Marketing 101" can tell you this. There is a well-established marketing principle called the "Product Diffusion Curve" which can give you a general idea of the adoption curve of new, innovative or distinct product or services.

Look here for more info.
http://www.quickmba.com/marketing/product/diffusion/

Generally, car buyers in the following two categories are the target buyers for the Volt:

Innovators - well-informed risk-takers who are willing to try an unproven product. Innovators represent the first 2.5% to adopt the product.

Early adopters - based on the positive response of innovators, early adopters then begin to purchase the product. Early adopters tend to be educated opinion leaders and represent about 13.5% of consumers.