GM held a press conference today, and for once, it wasn’t the equivalent of auto industry apocalypse that they were announcing.
On the contrary, they were announcing a new(ish) vehicle that’s been rumored to be coming down the pike sooner then later then sooner again: the Chevy Volt. It shall rise up after it was seemingly dead (though for longer than three days) and it will surely be the savior of the auto industry!
At least that’s their hope. They’ve announced today that using standard testing procedures, the Chevy Volt has posted a jaw-droppingly high 230 miles per gallon. When it hits the streets in a little over a year, analysts expect that it will cost somewhere in the neighborhood of 40,000. If gas prices stay relatively level until then, you’d have to drive
Average miles per year (15,000) x average gallons per mile(.04) x average gas cost ($2.60) = $1,560 per year in gas. Substitute the Volt’s mileage and you get $156. While that doesn’t seem like much, you’re only saving about $1,400 a year. And if you buy a $10,000, used compact car, it’ll take over 20 years to pay off just the initial cost of the car. Don’t even mention the increased insurance you’ll pay on a new car or the increased electric bill you’ll have from plugging it in, or the increase in maintenance costs for mechanics working on a car that’s never existed, or the fact that average users keep their cars for only 10 years.
About the electrons needed to run it — it still needs them. It doesn’t run on unicorn kisses or positive thoughts yet. – Brad Iger, Auto Industry Insider
But, still, it looks pretty cool, right?