GM places Volt lease at $350

GM places Volt lease at $350General Motors Co. convinced some shoppers to buy the Chevrolet Volt by unveiling a $41,000 price tag and three-year, $350-a-month lease.

GM executives answered the long-lingering price question at the Plug-In 2010 conference in San Jose, gave a peek at the Volt's marketing strategy and explained how customers can order the vehicle, which initially will be in short supply.

The lease deal ensures the Volt will be comparably priced with its closest competitor, the all-electric Nissan Leaf, whose monthly lease price starts at $349.

Analysts said the lease deal and retail price should comfort consumers who might be worried about buying a new vehicle that relies on expensive, new lithium-ion batteries. Particularly when combined with an extended eight-year, 100,000-mile power trains warranty.

While the Volt lease price will be comparable to the Leaf, GM is trying to distinguish the two vehicles in consumers' minds. The Leaf relies solely on a battery and has a range of 100 miles, while the Volt will travel up to 40 miles on electric power and will have a range of 300 additional miles on its gasoline engine.

Joel Ewanick, GM's vice president of U. S. marketing said that the strategy for Volt will be that it's more car than electric

The Volt's engine kicks in after its lithium-ion battery is drained by about 70 percent to sustain the battery's remaining charge, which will keep the car running for several hundred additional miles. The Volt's battery will be backed by an eight-year, 100,000-mile warranty on the battery pack.

GM has created a website “www. getmyvolt. com” which will let customers start placing orders immediately with dealers in launch markets.

The Volt initially will be sold late this year in Michigan, California, New York, New Jersey, Connecticut, Texas and Washington, D. C., before a national rollout 12 to 18 months later.

John O'Dell, senior editor at auto research site GreenCarAdvisor. com wrote that GM's pricing strategy will reward the company if it works.

GM plans to produce 10,000 Volts for the 2011 model year, eventually expanding to as many as 30,000.