A Volt with a smaller battery and shorter range for a cheaper price is something that GM has said they are looking into for the near future. However they want to get the 40 mile version out first and then work on alternatives. Going to a smaller battery pack would only in theory save you about $5000, not $10,000, but still, it would make the technology accessible to a few more people. I think if they build a 40 mile Volt for $40,000 and 20 mile Volt for $35,000, most buyers will pony up the cash for the extra range IMO. Still, with the tax credits this would get you an electric car for under 30 grand, and since it is the same car as the 40 mile Volt, the owner could upgrade their battery pack in the future.
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