General Motors is reportedly planning to launch a $30,000 electric car that can drive 200 miles when fully charged by 2017.
People familiar to the plan told the Wall Street Journal that the all-electric Chevrolet Bolt is the company's tactic of competing with Tesla Motors. The sources added that the details of the said plan will be presented at the Detroit motor show on Monday.
The Chevy Bolt was first sold in 2010 and now the car maker plans to redesign with better capability and design with a backup gasoline motor. GM wants to have the car ready by 2017, just in time with Tesla's Model 3 that has a price tag of $35,000. Chevy Bolt is expected to compete fairly with Model 3 with its cheaper price and longer mileage per full charge.
Sources also mentioned that GM's CEO Mary Barra, who approved the production of the electric car when she was still product chief, is aiming to market Chevy Bolt in other countries including China. The company will prepare 500,000 electric cars for sale by 2017.
GM's supplier for its electric car, South Korea's LG Chem, also made improvements on their end to bring down the price of the car without compromising durability and control.
But retailers are worried about CEO Barra's latest decision especially now that the gasoline price has dropped. Even so, Barra said that the company will remain on track with the electric car development, according to Businessweek.
"The old GM would have milked the cash cow until it was dry," said AutoNation CEO Mike Jackson said in an interview with the Wall Street Journal. "The industry will lose money on it.
