General Motors announced plans to invest money in two Michigan facilities to build a long-range electric car. The car is similar to the Chevy Bolt concept car first shown at the Detroit Auto Show. The new car won’t be rolled out for at least two years, but it is part of GM’s attempt to compete with other big automakers like Tesla and Nissan, both of which already released electric cars.
GM takes a huge risk
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GM is set to spend $160 million on the facility in Orion, Michigan, a suburb of Detroit. Manufacturing a car in the United States could be a huge risk on the financial level, mainly because the overall costs of the technologies and the low demand for battery-powered cars. If consumers don’t buy the automobiles, GM could suffer a huge loss. Overall demand for small cars previously took a hit thanks to low gasoline prices. Last year the automaker cut jobs at the Orion plant to make up for losses.
The future of electric cars
Many people and environmental groups hope green technology catches on and goes mainstream. Electric cars are just a part of the picture, as the vehicles don’t run on gas. Given the huge amount of money Americans spend on fuel, the savings are significant. Other benefits of these cars include government tax credits, safer design and easy maintenance.
The Chevrolet Bolt concept car is a small hatchback complete with a 200-mile range. The problem with many of the current electric automobiles on the market is the low mile range. Both Ford’s and Nissan’s electric cars come with a limited range of 75 miles, posing a concern for drivers who are not always near a charging station. The new Chevy car could alleviate such fears. The electric vehicle will cost $37,500, not including a tax credit of $7,500.