In an effort to boost sales of its Chevrolet Volt plug-in hybrid, General Motors is offering cash rebates of $4,000 on the 2013 model and $5,000 on the 2012 model from June 3, 2013 to July 1, 2013. The rebates are in addition to a $7,500 federal tax credit and $1,500 state tax credit for California residents. GM is also leasing the Volt for a down of $2,399 and a monthly payment of $269 for 36 months.
Volt suffered a 4-percent drop in sales in the United States in May 2013 to 1,607. This affected the volume for the first five months of 2013, which only surged 1 percent to 7,157 units compared with the same period in 2012. According to Edmunds.com, the average transaction price for the Volt was $40,236 in May 2013.
The incentive boost for the Volt comes amid price cuts and lease deals on rivals Nissan Leaf and Fiat 500e. In February 2013, Nissan trimmed the 2013 Leaf’s starting price by $6,400 to $29,650, including shipping. The average transaction price for the Leaf was $31,947 in May.
Don Johnson, Chevrolet’s vice president of U.S. sales, remarked that some of their rivals “have been pretty dramatic in their price reductions,” which may be causing some unnatural sales to their products. Nissan nearly triples its Leaf sales in the US in the first five months of 2013 to 7,614 units. On the other hand, incentives on the $32,500 Fiat 500e include the same monthly lease payment as the base 500 petrol models.
A customer could lease the 500e for $999 down and $199 per month for three years. As of June 1, 2013, dealers had a 162-day supply of the Volt, which is above ideal levels. According to Chevrolet spokeswoman Michelle Malcho, one of the reasons for the new incentives is to sell off the remaining inventory of 2013 Volts to get ready for the 2014 model. In May 2013, Volt discounts averaged $5,780 per unit while the Leaf averaged $6,625, according to Edmunds.com.