Significance: General Motors (GM) Europe has revealed the initial pricing of the European version of the Chevrolet Volt, the Opel/Vauxhall Ampera, with the entry-level model starting at 42,900 euro.

Implications: Although there is no doubt that there is a great deal of impressive technology in the Volt and these research and development costs have to recouped and amortised, this starting price for the Ampera would appear to be somewhat high, even after the 5,000-euro subsidy available for the model in the German and other European markets.

Outlook: The high ticket price of the Ampera is likely to be a significant barrier to sustained demand for the vehicle in the European market, especially in light of the much lower cost of some of the highly efficient conventional-powertrain C- and D-segment cars that are available across the region. GM may be able to eventually lower the cost of the vehicle through local production and higher volumes, but the company must try to avoid a situation whereby there is a surge in demand initially from early adopters followed by a dramatic slowdown as less enthusiastic potential buyers are put off by the vehicle's ticket price.

General Motors (GM) Europe has announced the pricing of the European version of the Chevrolet Volt, which will be sold as the Opel (or Vauxhall) Ampera across the region. The company will from today accept order reservations for the Ampera, with the manufacturer's recommended base price being set at 42,900 euro (US$57,697). The original equipment manufacturer (OEM) claims that in Germany, with value-added tax (VAT) being charged at 19% and taking into account the government's subsidy for electric cars and plug-in hybrids, the net price of the base Ampera will be 36,050 euro (US$49,524) This compares with the U.S. price for the Volt of US$41,000 with no government incentive package. However, GM Europe was also careful to state that prices would differ from market to market as a result of varying trim levels and specifications being offered throughout the European market. Sales will start across Europe in the fourth quarter of 2011.

GM has tried to highlight the fact that the pricing of the Ampera will be competitive with other OEMs' EV offerings, such as the Renault Fluence EV, which will be launched across Europe in the first half of 2011. In France, Renault has announced that the Fluence will go on sale for 21,300 euro, a price that massively undercuts the Ampera. However, Renault will lease the battery pack to customers for 79 euro a month. Customers will lease the batteries as this is seen as a simpler model than full ownership of the batteries in case they need replacing or fail to fulfil their expected lifecycle or number of charge cycles. GM Europe has claimed that the Ampera will compare well with EVs such as the Fluence as a result of the battery lease costs, claiming in its press release that, "Some competitors choose to split their offers for electric cars into two portions: a base price for the car and a leasing rate for the battery pack. This does make the price appear attractive because the battery leasing rate is not highlighted. However, battery leases are paid monthly for several years, so the total cost is roughly the same as a car whose total price includes both the car and the battery." However, with the Fluence's battery leasing costs coming to 948 euro per annum, it is difficult to see how these claims stack up.

Outlook and implications

There is little doubt that the Ampera boasts some extremely clever technology and that its range-extending conventional powertrain eliminates the "range anxiety" issues that will be a major factor for anyone considering buying one of the first-generation mainstream passenger car EVs such as the Fluence. However, at this time it is somewhat difficult to see how it will find its natural place in the market. The initial driving experiences and real-world performances elicited from the vehicle have varied. IHS Automotive senior analyst Aaron Bragman recently drove the car in the United States and achieved an impressive 44 miles purely on battery power, with three people and 150 lbs. of luggage on board. However, for other duty cycles that do not purely rely on the electric drive component of the Ampera's powertrain, the vehicle has recorded some somewhat disappointing fuel efficiency figures. Recently, respected technology Web site Engadget took the Volt on an extended test drive from Washington to New York. It found that the vehicle ran purely on electric power for 27 miles before the range-extending engine kicked in. The final fuel consumption for the 239.7-mile journey was 38.8 mpg. If repeated, these mileage figures would be obliterated by some of the Ampera's conventionally powered competition in the European market. When the model's high sticker price is taken into account, the comparison becomes even less favourable.

Taking the German market as an example, the Ampera will offer similar utility and cabin space to a conventional C-segment passenger car. The German market's best-selling C1-segment car is of course the Volkswagen (VW) Golf, with the most efficient version of the current Golf range being the 1.6 TDI BlueMotion. The model has a claimed combined fuel economy of 3.8 litres per 100 km, or 61.9 mpg, while it also emits just 99 g/km. There has been some debate over the best way to calculate the Ampera's carbon dioxide (CO2) emissions, with some claiming that factors such as how the electricity that charges the battery is generated should be taken into account. However, published estimates appear to differ wildly, ranging from 40 g/km to 130 g/km. However, the killer punch here is that the starting list price of the Golf 1.6 TDI BlueMotion in Germany is just 21,850 euro, almost half the Ampera's pre-subsidy list price. In fact, keeping with the German market by way of example, the Ampera's pricing puts it up against German premium D2-segment sedans such as the BMW 3-Series, Audi A4, and Mercedes-Benz C-Class, all of which may be able to match or better the Ampera's fuel consumption over longer inter-city journeys. The BMW 316d and the 120PS Audi A4 TDI both retail for 29,500 euro in Germany. Even the comparatively high-end C-Class C200 CDI BlueEfficiency still undercuts the Ampera at 34,173 euro. This kind of competition may make it very difficult for the Ampera to establish itself in the European market. GM Europe must attempt to avoid a situation whereby there is an initial surge of demand for the Ampera from early adopters interested in the technology, with sales then dwindling as more casually interested potential buyers are put off by the model's high price tag. Local European production may help ease the pricing situation to a degree, but GM Europe must find a way of presenting the Ampera as a compelling proposition in the European market, something that may prove difficult given its high price tag.