GM’s Chevy Volt challenges environmentalists

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General Motors announced today that its electric car, the Chevy Volt, will hit showrooms in late 2010. That is soon, and it’s exciting. The Volt is estimated to get 230 mpg. The electric motor is said to have a 40 mile range after which the gas engine takes over. The Volt can be recharged from a standard home outlet.

I am encouraged by GM’s announcement yet skeptical as to whether environmentalists have the dedication to buy the Volt and other electric cars that are coming out at the same time, like the Nissan Leaf. My reason; the Volt is expected to cost about $40,000 which, according to the Associated Press, makes the car’s cost prohibitive even if gas hits $4 per gallon. Joe six-pack is not going to be buying many Volts.

This is an excellent opportunity for those that are very concerned with global warming to make a statement and to do enormous good. Economics teaches us that if there is a demand, suppliers will meet that demand, innovate to capture more of the demand, and lower their prices to capture still more. Environmentalist need to buy the Volt, the Nissan Leaf, and other electric vehicles to create the market that will incent automakers to innovate further and to reduce their costs.

I am skeptical that environmentalists have the dedication to lead by example and create the market for electric cars. I suspect they will wait, hoping for government subsidies that may never come.

This is the second electric car announcement in recent weeks by a major automaker (that I know of). Environmentalists will be able to make a huge difference on global warming, if they are willing to put their money into their cause and buy these cars.

Environmentalists, will you support your cause?

Tagged as: chevy volt, electric cars, gm volt, nissan leaf