Chevy To Offer Dealers Top Challenger To Tesla?

General Motors has had its share of bad press during the past year. From the ignition switch recall to probing senate questioning of its CEO, GM is certainly hoping for a smoother run through 2015. As the year marches on, GM has decided to discontinue its first generation Chevy Volt to make way for a new model in 2016. Will this be a simple model upgrade or the start or a green car momentum for GM?

According to the WSJ, General Motors is planning to stop production of the first Volt this summer in hopes that dealers can sell off remaining stock to make way for the new edition. During its five-year run as GM’s niche hybrid, about 70,000 units were sold. Those proved to be underwhelming numbers compared to where hopes for the vehicle were back in 2010 when it originally launched. Through March 2015, Chevy has only sold 1874 Volts, which is a year-over-year drop of 48 percent. The question is, can the second Volt do much better?

The redesigned Volt is supposed to attract consumers due to advances in range and in-car technology. GM claims consumers can expect over 400 miles of range from its latest Volt. This includes 50 miles of all-electric range combined with a 1.5-liter gas-powered motor. The gas motor alone will reportedly allow Volt owners to achieve 41 miles per gallon. The 2016 volt boasts a 101 horsepower gasoline powered engine compared to the 84 HP version in the original Volt. The new gas engine also doesn’t require premium fuel, but can instead be operated using regular gas. However, is the Volt even the vehicle that dealers should be excited to sell?

The new Volt represents a major upgrade from the original model; however, the potentially more exciting vehicle for dealers is the Chevy Bolt. While the upgraded Volt will more effectively compete against the Toyota Prius, the Chevy Bolt is poised to stand opposite Tesla Motors in the boxing ring. The 200-mile fully electric car is due for production in 2017. The cost is reportedly around 35k, a number that represents the tipping point of bringing an electric car to the masses. Telsa Motors, on the other hand has announced that their Model III will have a 200-mile range and cost about the same as the Chevy Bolt. One large difference between the two is that there is a Chevy Bolt prototype that GM has put on display. Tesla, meanwhile has promised a lot from its Model III, and hasn’t shown anything yet. They are possibly still too far behind on developments on their Model X, due this year, to concentrate on the smaller, and less expensive Model III.

From a dealer perspective, Tesla has been a thorn in the side of state dealership franchise laws. From Michigan to Georgia to New Jersey to Utah, they have shown an undying willingness to lobby for the legal exception to sell where they want to sell. If the Bolt and potentially Volt turn out to be excellent vehicles, then they could give some dealers the opportunity to compete with Tesla by offering a better buying alternative. Selling a competing car would take the place of dealers across the USA joining forces in state dealer groups to combat Tesla via legal paperwork.