Of course, you can point to big price differences in gasoline-powered cars as well. There are other factors that drive pricing in the auto industry. And economically, new technologies are often higher than existing technologies. When VCRs first hit the market, they were expensive. When DVDs hit the market, they were expensive. Cell phones, laptops, PDAs – all were expensive initially.
Typically, when the market begins to expand and more people start buying the new technology, that’s when the price comes down. So I’d expect to see the GM Volt lower to the average automobile price after a few thousand cars are sold.
The first market for the Volt will be California. After that, GM plans to roll out the new EV in New York, Connecticut, New Jersey, Michigan, Texas and Washington D.C.