DETROIT (AP) – Whether people like it or not, automakers are implementing new models for electric vehicles as the industry responds to stricter pollution regulations and calls to reduce emissions to combat climate change.
The latest offering comes from General Motors, which unveiled a compact Chevrolet Bolt SUV on Sunday. It has an estimated range per charge of 400 kilometers and a starting price of $ 33,995.
The Bolt Electric Utility Vehicle will be offered for sale as a 2022 model in early summer. Sales will start with a small number of early versions costing $ 43,495.
That would bring the total number of cars for sale in the U.S. to 23, and Edmunds.com expects the figure to be 30 this year. About 2.5 million electric vehicles were sold worldwide last year. IHS Markit predicts it will rise by 70% this year alone.
But the switch still has a long way to go. Fully electric vehicles accounted for less than 2% of U.S. sales of new vehicles last year, and Americans still spend record amounts on larger trucks and sport utility vehicles. EVs make up 3% of sales worldwide, says GM.
The new Bolt is part of GM’s promise to bring 30 new EVs to market worldwide by 2035, and its goal is to produce electric passenger vehicles only within 14 years. It will sit longer and have more legroom behind the seat than the current Bolt electric hatchback, which is being updated, and will participate in one of the hottest segments of the US market. Buyers can also opt for GM’s “Super Cruise” partially automated driver assistance system.
Stephanie Brinley, an analyst at IHS Markit, said the new SUV is another step towards a wider use of fully electric vehicles, but it will take a lot more.
“At least one element of mainstream EVs should be the choice of consumers and availability of usable EVs in different segments and price points,” she said. “Some will have more impact than others, but there is not one vehicle that can turn the tide.”
The Bolt sport utility vehicle will appear as GM has a price advantage to most competitors due to a $ 7,500 federal tax credit. The credit is being phased out after manufacturers achieved 200,000 sales of electric vehicles, and GM and Tesla both reached that level. A Democrat bill on the House Ways and Means Committee would increase the limit to $ 600,000 and reduce the credit to $ 7,000.
A White House spokesman said President Joe Biden was in favor of restoring full tax credit, a priority for American-made vehicles and middle-class consumers. The spokesman declined to comment on the sales limit.
GM CEO Mary Barra said last week that the company wanted to increase credit so that the “first movers” with the new technology would not be penalized.
Steve Majoros, Chevrolet’s marketing director, said he would like to get the tax credit back to boost sales. He said GM is talking to the Biden administration about the credit.
“Right now we are very happy with the price point we have, and we are going to do well,” Majoros said.
GM said they could use economies of scale to reduce the price of the updated Bolt hatchback by more than $ 5,000 to $ 31,995.