Volt Falls to Electric-Car Price War
General Motors Co. GM -1.07% cut the starting price of its latest Chevrolet Volt electric car by 13%, expanding a price war among makers of plug-in vehicles in response to sluggish demand.
The price cut is yet another sign of the difficulties GM has faced trying to establish a market for plug-ins. Overall, plug-in vehicle sales are rising, driven by offerings such as the Tesla Model S from startup Tesla Motors Inc. TSLA +3.07% But despite government subsidies, they remain a niche market. Limited driving range is an obstacle for most all-electric cars. Volt, which uses a gasoline motor to extend its range to 380 miles, has to compete with fuel- efficient Chevrolets that sell for as little as half its sticker price.