U.S. lawmakers have complained that China is shaking down GM to get the technology that drives the Chevrolet Volt electric car. GM plans to start selling the Volt in China by the end of the year, but its prospects are iffy because it doesn’t qualify for a Chinese government subsidy that amounts to $19,000 per car. The government offers the subsidy only to electric cars made in China.

Lawmakers contend such requirements are unfair and may violate world trade rules.

While a GM spokesman tells a different story:

But GM spokesman Jay Cooney in Detroit said the company has not been pressured by the Chinese government to share the Volt technology and has no plans to share it. He said GM is working with the Chinese government in an effort to get the subsidy for the Volt because it helps reach a government goal of getting more electric vehicles on the road.
The cooperation agreement was signed during a meeting of the U.S. automaker’s board in Shanghai — a visit underscoring China’s importance to the company’s future. It was the GM board’s first meeting outside of the U.S.

The Good:
The Volt is smooth and quiet and the range predictor is very accurate. The styling also garners praise from most people that see it.

Cars.com’s editors universally appreciate the Volt’s smooth, quiet ride. The cabin itself remains admirably quiet once the gas engine turns on, though the noise is more intrusive than it seemed when I first reviewed the car. Cold weather intensifies it because the engine runs at higher rpm, even at low speeds, to generate warmth.

We also appreciate how accurately the Volt predicts its range. In this regard, our 2011 Nissan Leaf is an enigma. Frankly, we’d prefer the opposite, as the stakes are higher when the Leaf runs out of juice.

Running on electricity: It’s nice not having to frequent gas stations. We could engage in a lengthy debate about how clean an electric car truly is on the grand scheme, and I can’t say I’m a fan of electric utilities, but all the same I underestimated how satisfying it is to not burn petroleum for up to 50 miles. Some of our editors commute in the Volt without using gas at all, depending on conditions. The cost of operation on electricity is undeniably lower than it is for a comparable gas-powered or hybrid car.

The Volt’s styling continues to impress. In a class of dorky high-mileage cars, the Volt is a slick-looking package. It continues to garner praise from onlookers who have never seen a Volt in person.

The Bad:
The brakes are unresponsive and you end up nose diving the car almost every time you park.

The brakes: Our three main complaints about the Volt are the brakes, the brakes and the brakes. I thought the pedal felt pretty decent compared with hybrids when I first reviewed the car last autumn, but we’ve all come to loathe our Volt’s brakes for the dead zone over the first inch or so of pedal travel and the mushiness thereafter. Awkward nosedive braking is all but assured when parking. In an otherwise impressive driving experience, it’s a major downer, and something you experience every single time you drive, making it a potential deal-breaker for shoppers.

Another shortcoming is one you don’t experience every time you drive, and that’s the premium gas requirement. If you run electric-only, all is well, but cars like the Volt are often purchased to save money on fuel (if not the car itself). Premium gas is the province of luxury and high-performance cars, and likely Volt buyers have never touched a premium nozzle in their lives. At an estimated 37 mpg once the engine turns on, the Volt is reasonably efficient, but more affordable cars with comparable interior space are now pushing 40 mpg on regular gas.

Lets start out by pointing out the differences. The Leaf is an entirely electric car with a stated range of 100 miles while the Volt is a plugin hybrid that has a range of 40 miles on battery power and then it can turn on a gas engine to power it for another 300 miles. The Leaf costs about $10 thousand less than the Volt. They both qualify for the $7,500 federal rebate, but the Leaf also qualifies for a $2,500 rebate in California (bringing total price close to $20 thousand) – the Volt does not.

Both can be leased for the same amount, $350 per month. The Volt requires an extra $500 down ($2500 compared to $2000) to get that lease payment and GM is subsidizing the rest.

So which one should you buy? It depends (doesn’t it always?). As an owner of the Leaf you would still need another car to drive for those trips where you travel further than 100 miles. The Leaf would essentially be a commuter car (assuming your round trip commute is less than 100 miles). The Chevy Volt is a car you can use to replace your current car. After those 40 miles are up you are just using gas that you can get at any gas station around.

I suppose it comes down to finances, can you afford to spend $20 thousand on an extra car when another 10 would allow you to replace your car entirely.

production-volt-overview

Now I know most of you out there are saying that price is pretty high for a 4 seater that isn’t a sports car. But the price range of the Volt puts it in the same class as other high end cars of equal size. Sure it will lack performance, but the interior is on par with it’s luxury car counterparts (it will surpass them in many areas where technology is concerned). And the ‘cool’ factor and MPG should make up for any lack of performance for the buyer of this car.

That price does not count the current tax rebate you get when buying an electric car. When you add the tax rebate of $7,500 the total price comes down to $33,500 making the Volt available to many buyers. In addition GM is going to offer leases on the Volt for $350 per month with the option to buy at the end of the lease.

To put it in perspective, when the Prius came out about 10 years ago it had an initial price tag in the mid thirties. The Volt (without) the rebate is priced about the same when you adjust for inflation. Today a Prius starts at $23 thousand, over time the Volt will come down in cost as well. Any time a new technology is released early adopters pay a premium to be the first on the block with it. But given 5 to 10 years the Volt will be competing with the Prius on price.

The OnStar EV Lab, housed in GM’s downtown Detroit corporate headquarters, is now using the OnStar communications system to gather data on 19 Chevy Volt vehicles for engineering purposes. The same technology will give consumers the ability to tap online services and perform tasks specific to a plug-in electric vehicle, company executives said.

When GM releases the Volt at the end of next year, consumers will be able to program when to charge the vehicle much like they operate home heating and cooling system, said Tony Posawatz, the vehicle line director for the Chevy Volt. GM is considering more advanced features as well, such as demand response where car charging slows down during peak times in exchange for lower rates from the utility.

“The car will have to talk to the grid and be able to pull very sensitive (utility) data,” Posawatz said. “Electric vehicle customers want to manage their energy–they’re very into data. OnStar is an enabling tool for us.”

The OnStar system could broker communications with the utility so that consumers can charge at off-peak times, such as the middle of the night, and potentially take advantage of lower rates. “Smart charging,” or charging at off-peak times, is important to manage so that plug-in electric vehicles don’t add to peak-time electricity demand. In the near term, utility executives say the biggest concern is that many cars in one local area will tax one particular electricity distribution point. More

The plant is retooling right now to make the Cruze. The segment for smaller, more affordable cars is growing, the Cobalt is seeing a surge in sales. The Cruze should fair well in the market for affordable cars.

The Cruze will be available with remote start, bluetooth connectivity, onstar w/ GPS and a bevy of other options.

With many of the automakers producing (and hyping) their hybrid cars do the rest of the fuel efficient cars linger on the lots?

GM is upgrading a current assembly plant to keep costs low.  The new factory off Interstate 75 in Brownstown Township, about 15 miles south of Detroit, will take batteries made by LG Chem in South Korea and assemble them into packs that will power the new Chevrolet Volt, said the person, who requested anonymity because GM hasn’t officially announced the plant site.

The Volt, due in showrooms by November of 2010, will be built at an existing GM factory that straddles the border between Detroit and the tiny enclave of Hamtramck. That plant now makes the slow-selling Buick Lucerne and Cadillac DTS full-size sedans.

The battery pack factory will be highly automated and won’t employ a huge number of people, but it will be able to weld the battery packs together quickly, GM officials have said.  Though Michigan has to be pleased with any new jobs at this point.  The motor capitol has lead the US with unemployment rates of over 15% partly due to the recession hitting the auto industry hard.