A Bolt to the Volt Following GM Price Cut
Many American consumers like the idea of electric cars, but few are willing to shell out the cash that they require for purchase. General Motors (NYSE:GM) struggled with that problem this summer but worked to combat the deflated demand by issuing price cuts for its Chevrolet Volt in early August.
Nissan, too, implemented a similar strategy with its struggling Nissan Leaf, and now, according to The Detroit News, thanks to those price cuts, it’s been smooth sailing (or driving) for both automakers ever since. August even marked the best sales month for both vehicles in their history.
In terms of the Chevrolet Volt, a popular plug-in hybrid that has especially appealed to consumers on the West Coast, GM cut its base price 12.5 percent on the vehicle, from $39,995 to $34,995. That $5,000 price slash effectively spurred the sale of 3,351 Volts in August alone, and in popular markets like California and Michigan, sales increased as significantly as 80 percent and 60 percent, respectively.