Marketed as the model to turn General Motors' luck around, the Chevrolet Volt is now facing setbacks. A GM report is claiming that the Volt's range-extender hybrid technology will not be able to meet its November 2010 launch date. The report culled from its regulatory filing to the US Treasury also said that the Volt has not yet proven to be commercially viable.
It is likely that GM will initially sell the Volt at a loss, hoping that it would recoup the development costs in future-generation models as Toyota has done with its Prius.
Majority-owned by the US Treasury, GM has been seeking loans from the US Department for Energy to help it develop advanced fuel technology vehicles. Unfortunately, it has had all three applications for a $5.7 billion share of the $25 billion fund denied. A fourth application is due this month.