DETROIT (AP) – Whether people like them or not, automakers are introducing new electric car models as the industry responds to tougher pollution regulations and calls to reduce emissions to combat climate change.
The latest offering comes from General Motors, which unveiled a Chevrolet Bolt compact SUV on Sunday. It comes with an estimated range per charge of 250 miles (400 kilometers) and a starting price tag of $ 33,995.
The Bolt Electric Utility Vehicle will go on sale early this summer as a 2022 model. Sales will begin with a small number of early versions priced at $ 43,495.
It will bring the total number of EVs for sale in the US to at least 23, and Edmunds.com expects that number to reach 30 this year. Last year, approximately 2.5 million electric vehicles were sold worldwide. IHS Markit predicts it will increase by 70% this year alone.
But the switch still has a long way to go. All-electric vehicles accounted for less than 2% of new vehicle sales in the US last year, and Americans continue to spend record amounts on larger gas-powered trucks and SUVs. According to GM, electric cars account for 3% of global sales.
The new Bolt is part of GM’s pledge to bring 30 new EVs to market worldwide by 2035, and its goal of producing only electric passenger cars in 14 years. It will be larger and more legroom in the rear than the current Bolt electric hatchback, which is being updated, and will compete in one of the most popular segments of the US market. Buyers can also choose GM’s “Super Cruise” partially automatic driver assistance system.
IHS Markit analyst Stephanie Brinley said the new SUV is another step toward wider adoption of all-electric vehicles, but it takes a lot more.
“At least one element of mainstreaming electric vehicles must be consumer choice and the availability of usable electric vehicles in different segments and price points,” she said. “Some have more impact than others, but there is not one vehicle that can turn the tide.”
The Bolt SUV comes out when GM is at a price disadvantage over most competitors due to a federal tax credit of $ 7,500. The credit is being phased out after manufacturers sell 200,000 electric vehicles, and GM and Tesla have both passed that level. A Democrats bill on the House Ways and Means Committee would raise the ceiling to 600,000 and lower the credit to $ 7,000.
A White House spokesman said President Joe Biden is in favor of restoring the full tax credit, prioritizing US-made vehicles and targeting middle-class consumers. The spokesperson would not say anything about the sales limit.
GM CEO Mary Barra said last week the company would like to see its credit expanded so that “first movers” with the new technology are not penalized.
Steve Majoros, Chevrolet’s marketing director, said he would like to get the tax credit back to boost sales. He said GM is in talks with Biden’s administration about the credit.
“At the moment we are very satisfied with the price we have and we are going to have a good run with it,” said Majoros.
GM said it could use economies of scale to cut the price of the updated Bolt hatchback by more than $ 5,000 to $ 31,995.