GM may Debut 60,000 Volt Electric Cars - 8/23/07

General Motors may build as many as 60,000 Volt electric cars for their first year on the market, 4 times the sales of Toyota's hybrid Prius in its first full year in the U.S., people with knowledge of GM's plans said.

Production at that level may allow GM to sell the plug-in Volt for less than $30,000, said the sources, who didn't want their identities revealed because the plans are confidential. The discussions show the Detroit automaker, racked by losses and U.S. sales declines, believes an affordable electric car will help spur a revival, the people said.

"If they were able to get 30,000 to 60,000 on the road in a year, it would be a huge leap in technology," said Brett Smith, an alternative-fuel analyst at the Center for Automotive Research. "It will be difficult, though, because there are so many barriers to making this happen."

A high-volume release for the Volt, designed to go 40 miles without recharging, would lend credence to Chief Executive Officer Rick Wagoner's strategy of using technological advances to gain ground on Toyota. The Japanese company has a decadelong lead with its Prius, a gasoline-electric car that is the world's best-selling hybrid.

"If GM can make a Volt that costs less than $30,000, you really could start to see significant demand," Smith said.

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