Here's a shock: $60K pricetag for Volt

The Volt hybrid electric car is expected to cost more than the most expensive Commodore -- and up to 50 per cent dearer than a Toyota Prius -- when it goes on sale in Holden showrooms in 2012.

The much anticipated General Motors hybrid electric vehicle, which will be sold as a Chevrolet in North America, is expected to cost in excess of $US40,000 when it goes on sale there about a year from now. However, by the time exchange rates, taxes and other charges are calculated, company insiders estimate the Volt could cost "well in excess of $60,000" when it eventually goes on sale locally.

Speaking at the launch of the new Commodore V6 range last week, Holden refused to speculate on price, but the company's boss did admit that the cost was a "challenge".

"The Volt is still on target for Australia, but pricing is going to be a challenge," said newly appointed Holden chairman and managing director, Alan Batey.

"At this moment in time it's too early to define what pricing will be. One of the key issues is the exchange rate, and we obviously don't know where that's going to be in two years from now.

"I've got to say that the whole program is challenging. When you're breaking new ground from a technology perspective, that is as challenging as it gets."

However Batey said, the technology in the Volt was getting less expensive as the car's launch date approached.

"The technology advancements are moving week by week, and hopefully we'll see the cost come down."

Batey would not give an exact sales target, but the Carsales Network understands Holden could seek to sell as few as 100 Volts annually.

"I don't think it's going to be a mainstream vehicle. It'll be a niche," said Batey. "It will not meet everyone's needs and requirements. But when you put a technology out there which is ground-breaking, it takes time for people to understand it."

Batey said the Volt's true value will be priceless to Holden and General Motors.

"It's a great statement and a great halo for GM Holden and it shows we are committed to taking leadership in new technology," he said.

The Volt is about the same size as a Holden Cruze sedan, with which it shares some of its underpinnings and DNA.

A range-extended electric vehicle, the Volt is unlike other hybrids available at present which use petrol or diesel engines as part of their drivetrain. Toyota's Prius, for example, has a battery-only driving range of less than 2km using light throttle and cannot be recharged at a power point. It's petrol engine powers the car and recharges the battery on the move.

The Volt, meanwhile, can be recharged at home and travel at normal traffic speeds 64km on battery power alone. Its petrol engine is in fact a generator and is not connected to the drivetrain.

The Volt is due to be sold as a Chevrolet in North America from late 2010 and as a Holden in Australia from late 2012 or early 2013.

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