As sales flounder, GM drops price on 2014 Chevy Volt by $5,000

The new asking price on the Chevy Volt will be $34,995, which could make the car more competitive with more affordable rivals such as the Nissan Leaf. 

GM is slashing the price of its Chevrolet Volt plug-in car by $5,000. 

In a press release Tuesday, the company said the 2014 Volt, which is scheduled to hit dealerships this month, will retail for $34,995, down substantially from the nearly $40,000 asking price on the 2013 edition. If you factor in tax credits, the cost of a new Volt could go down to $27,495, according to GM.  

"We have made great strides in reducing costs as we gain experience with electric vehicles and their components," Don Johnson, the US vice president of sales for Chevrolet, wrote in the press release. "In fact, the Volt has seen an increase in battery range and the addition of creature comforts, such as a leather-wrapped steering wheel and MyLink, since its launch in 2010." 

In fact, the Volt has regularly garnered high marks from critics. 

Reviewing the vehicle in 2011, Car and Driver called the vehicle "without a doubt the most important new car since the advent of hybrids in the late ‘90s." 

Still, GM has struggled to gin up interest in the Volt. In June, the company unloaded 2,698 Volts nationwide – not bad, considering that the highest monthly record before that was 1,626. But cheaper competitors, such as Nissan's Leaf ($28,880, not including any tax incentives), have proven more popular among consumers. 

"GM is getting with the times," Michelle Krebs, a senior analyst with Edmunds.com, told Bloomberg this week. "Consumers want electric and plug-in hybrid vehicles at prices competitive with other vehicles without the advanced technology." 

Reps for GM claim that the 2014 Volt will go 900 miles without a fill-up; in addition, the company lists the fuel economy at "98 MPGe (electric) and 35 city/40 highway on gasoline power."

Not bad.