DETROIT (AP) – Whether people want it or not, carmakers are launching new electric vehicle models as the industry responds to stricter pollution regulations and calls for emissions reductions to combat climate change.
The latest offer comes from General Motors, which unveiled a Chevrolet Bolt compact SUV on Sunday. It comes with an estimated charging range of 250 miles (400 kilometers) and a starting price of $ 33,995.
The Bolt electric utility vehicle will go on sale earlier this summer as a 2022 model. Sales will begin with a small number of early versions at a price of $ 43,495.
It will bring the total number of electric vehicles on sale in the US to at least 23, and Edmunds.com expects this figure to reach 30 this year. About 2.5 million electric vehicles were sold worldwide last year. IHS Markit predicts it will grow by 70% this year alone.
But change has a long way to go. All-electric vehicles accounted for less than 2% of new vehicle sales in the United States last year, and Americans continue to spend record amounts on larger motorized trucks and SUVs. Electric vehicles account for 3% of global sales, says GM.
The new Bolt is part of GM’s promise to bring 30 new electric vehicles to market worldwide by 2035 and aims to produce only passenger electric vehicles in 14 years. It will stand taller and have more legroom in the rear seats than the current Bolt electric hatchback, which is being upgraded, and will compete in one of the hottest segments of the US market. Buyers can also opt for GM’s “Super Cruise”, partially automated, driver-assisted system.
IHS Markit analyst Stephanie Brinley said the new SUV is another step toward wider adoption of all-electric vehicles, but it will take much longer.
“At least one element of integrating electric vehicles must be consumer choice and the availability of usable electric vehicles in a variety of segments and price points,” she said. “Some will have a greater impact than others, but there is no single vehicle that can turn the tide.”
The Bolt SUV will come out when GM is at a price disadvantage for most competitors due to a $ 7,500 federal tax credit. Credit is phased out after manufacturers reached 200,000 sales of electric vehicles, and GM and Tesla have both passed this level. A bill by the Democrats in the House Committee on Ways and Means would raise the ceiling to $ 600,000 and reduce the credit to $ 7,000.
A White House spokesman said President Joe Biden was in favor of restoring the full tax credit, prioritizing US-made vehicles and targeting middle-class consumers. The spokesman declined to comment on the sales limit.
GM CEO Mary Barra said last week that the company would like to see extended credit so that “first-time operators” with the new technology are not penalized.
Chevrolet Marketing Director Steve Majoros said he would like to get his tax credit back to boost sales. He said GM is talking to the Biden administration about credit.
“For now, we are very satisfied with the price we have and we will make a good race with it,” said Majoros.
GM said it could use economies of scale to reduce the price of the updated Bolt hatchback by more than $ 5,000 to $ 31,995.