International Business Times, By Carl Bagh | August 2, 2010 6:35 AM EDT
After pricing its electric model Volt for $41,000, GM announced a 50 percent hike in production target for Volt from 30,000 units to 45,000 units in 2012.
The Chevrolet Volt is displayed at General Motors' World Headquarters in Detroit, Michigan September 16, 2008. (Rebecca Cook / REUTERS) (Enlarge This Image)
The announcement follows U.S. President Barack Obama's visit to the Detroit-Hamtramck facility - Volt's production site.
GM attributed the increased production target to strong customer interest in the vehicle. GM reported that more than 25,000 people joined the Chevrolet Volt enthusiasts' list.
Not to be left behind, the $32,780-priced Nissan Leaf will also go sale in December in California, Washington, Oregon and Arizona where customers can start placing orders by August. Nearly half of the customers who have placed orders for Leaf are situated in these states. Its rollout strategy is based on customer concentration and readiness. The next launch is due in Texas and Hawaii in 2011 followed by North Carolina, Florida, Georgia, Virginia, Maryland, South Carolina, Alabama and the nation's capital next April.
While GM is launching its Chevy Volt inCalifornia, Michigan and Washington, it is also targeting the densely populated tri-state region of New York, New Jersey and Connecticut.
Nissan is currently addressing the issue of battery-charging in the targeted states as it is set to roll out its charging-infrastructure plan designed in conjunction with California-based firm Ecotality - the most critical element that factors into the buying decision of customers.
The ensuing price war has pitched the makers of the electric cars GM and Nissan against each other.
Chevrolet Volt runs 40 miles on battery which can further reach 300 miles when the 1.4 liter gasoline engine generator kicks in while the all-electric Nissan Leaf has a capacity to do 100 miles. Currently, the primary advantage that Leaf enjoys is its price which reduces to around $25,000 once the Federal grant of $7,500 per unit pitches in.
However, GM has tried to cheat the price competition by offering an eight-year 100,000-mile warranty for its most expensive component - battery and has matched Nissan's offer when it comes to leasing.
GM is surely benefiting from US government's pledge to support the electric venture. The President commented "Pretty smooth," as he stepped out of the Volt to resume his tour of the Detroit-Hamtramck assembly plant.
President Obama, after visiting the two Michigan auto plants, also declared the auto bailout plan to automakers successful.
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