General Motors and Daimler have amped up the electric-car price war, announcing significant price cuts aimed at boosting demand in a still-sluggish segment of the US auto market.
GM slashed US$5,000 from the price of its next year Chevrolet Volt plug-in hybrid, while Daimler announced a steeply discounted monthly lease price of US$139 on its this year Smart Fortwo Electric Drive.
Plug-in vehicles such as the petrol-electric Volt and the pure-electric Fortwo ED have encountered stiff resistance from US consumers, in part because of their higher prices and lack of a nationwide battery charging network.
US sales of plug-in electric and petrol-electric vehicles through July totaled only 48,889, according to research firm Autodata. That represents just 0.5 per cent of total US vehicle sales of 9.1 million in the first seven months of this year.
The US$5,000 cut for the next year Volt will lower the price to US$34,995, including delivery fees but before federal tax credits.
Smart is offering US dealers a US$2,000 wholesale rebate on this year’s Fortwo ED model, effectively lowering the retail price to US$23,750. Customers also can opt to lease the tiny battery-powered two-seater for US$139 a month for 36 months, with US$1,995 down, a 30 per cent discount from the previous monthly lease rate of US$199.
Smart has delivered only 173 Fortwo EDs to US customers this year. The brand began offering an upgraded electric motor and battery pack in May and will start selling next year models in October. A redesigned Fortwo ED is expected for the 2015 model year.
