When new-GM first introduced its Volt plug-in hybrid electric vehicle, it represented a groundbreaking automobile that would redefine and rejuvenate the brand, lifting it from a dinosaur culture that had gone bankrupt.
Despite GM's efforts, the Volt, while a game changer, has a hard time changing the consumers' reservations towards the brand.
One of the strongest markets for GM is certainly China, which possesses rather unique car buyers that regard Buick ownership as a mark of status and success. However, the Chevy Volt is finding it difficult to gain traffic there as well, as a Volt in China is priced at nearly double the North American msrp (USD$40k) due to the heavy taxes that are slapped upon entering imports.
Understanding the challenges that the Chevy Volt faces, Head of Electric Vehicle Strategy of GM China Ray Bierzynski acknowledged to Automotive News that the Volt is "a very low-volume" car.
While this might seem like a sign to scale down operations or even scrap Volt distribution in Asia, Bierzynski will actually expand GM's presence in the alternative energy market. GM will be introducing a China market Cadillac Escalade as well as a Buick La Crosse with eAssist, a Volt-based Cadillac ELR plug-in hybrid electric luxury coupe, and finally an all-electric variant of the Chevrolet Sail, GM's China best-seller.
This might seem as if GM is placing major commitments to a risky endeavor but the Automaker is in fact responding to China's future demands. China will be heavily pushing for future self sustainability and EVs utilizing renewable energy will play an enormous role in China's efforts. According to Automotive News, China aims to have at least half a million EVs and hybrids on the road in three years time. Long-term, China projects 5 million EVs and hybrids by 2020.
To circumvent China's severe taxing policies, GM will be looking to expand its manufacturing capacities within China. At the moment, GM is already looking looking into local suppliers and evaluating the standards and integrity of Chinese battery packs.
