DETROIT (AP) – Whether people want it or not, carmakers are introducing new electric vehicle models as the industry responds to stricter pollution regulations and calls for emissions reductions 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 load range of 250 miles (400 kilometers) and a starting price of $ 33,995.
The Bolt Electric utility vehicle will go on sale earlier this summer as a 2022 model. Sales will begin with a reduced number of early versions priced at $ 43,495.
It will bring the total number of vehicles for sale in the United States to at least 23, and Edmunds.com expects that figure to reach 30 this year. Last year, about 2.5 million electric vehicles were sold worldwide. IHS Markit predicts it will increase by 70% this year alone.
But change has a lot to go through. All-electric vehicles accounted for less than 2% of new vehicle sales in the United States last year and Americans continue to spend record amounts on larger trucks and motor SUVs. Electric vehicles account for 3% of worldwide sales, according to GM.
The new Bolt is part of GM’s promise to market 30 new electric vehicles worldwide by 2035 and its goal is to produce only passenger electric vehicles in 14 years. Sit taller and have more legroom in the back seat than the current Bolt electric hatchback, which is being upgraded, and will compete in one of the hottest segments of the US market. Buyers can also opt for GM’s partially automated “Super Cruise” driver assistance system.
IHS Markit analyst Stephanie Brinley said the new SUV is one more step toward broader adoption of all-electric vehicles, but many more will be needed.
“At least one element of the incorporation of electric vehicles should be consumer choice and the availability of usable EV elements in various segments and prices,” he said. “Some will have more impact than others, but there is no vehicle that can change the tide.”
The Bolt SUV will come out when GM is at a price disadvantage for most competitors due to a $ 7,500 federal tax credit. Credit is extinguished after manufacturers reached 200,000 in electric vehicle sales and GM and Tesla have surpassed that level. A Democrats road and media committee bill would raise the limit to $ 600,000 and reduce credit to $ 7,000.
A White House spokesman said President Joe Biden is advocating for the restoration of the full tax credit, prioritizing U.S.-made vehicles and targeting middle-class consumers. The spokesman declined to comment on the sales cap.
GM CEO Mary Barra said last week that the company would like credit to be expanded so that “first engines” are not penalized with the new technology.
Chevrolet marketing director Steve Majoros said he would love to get the tax credit back to boost sales. He said GM is talking to the Biden administration about the credit.
“At the moment we are very satisfied with the price we have and we will have a good race,” Majoros said.
GM said it was able to use economies of scale to reduce the price of the upgraded version of Bolt hatchback by more than $ 5,000 to $ 31,995.