Tax breaks should die.
Here, we're looking at a $40,000 compact.
Take note... a compact. Not even a tweener, like the Prius (which is only a tweener because of the hatchback... really) but a compact.
For this much money, $16k gets you into a Honda Fit... the other $16k buys you 4000 gallons of $4/gal gas.
That's how many years of driving, now, before you match the Volt's price?
Hmmm... Excel time!
Given the equivalency factor posted on the wiki page (yes, I'm using wiki... yes, it's despicable... but I need a reference since I'm not familiar with Kw/hr charging in the US), the Volt's equivalence is 85 mpg...
So... we'll go by EPA figures for the Fit... 28 mpg for city use... and city use is where the Volt will be most efficient.
So... by my calculations... the subsidized Volt would require 167,000 miles before even breaking even with the Honda Fit. Of course, that's at $4 a gallon... which it isn't now, but will be in the future. As gas gets more expensive... it will go higher... but this still means you would have to drive a very long time before you even break even with a regular car with similar space and more utility.
And this doesn't take into account battery pack degradation... which will have a negative effect on estimated mileage after five years or so. The effect isn't very big on some hybrids... but on others, battery replacement does rear its ugly head past that mark.
If we remove the government incentive... it's 250,526 miles before you break even...
What a crock. And for those who feel that buying an electric is good for the environment... the amount of money spent on manufacture and transportation will roughly correlate to the amount of capital expended to build and fuel the vehicle... which roughly correlates to how much energy is needed for said production and fuel generation... which roughly correlates to your CO2 contribution to the environment, considering all companies practice carbon-offsetting (which is a crock in itself).
The Volt would only make sense if it could ROI within 100,000 miles or less... with a sticker price of $25,000 US. Otherwise, it's a huge price to pay for exceptional fuel economy.
It would have been better marketed as a Cadillac. As a quiet luxury compact that would spend very little time waiting at the pumps at the gas station. As it is... it's going to be a tough sell.
A very tough sell.