Faced with weak sales of its much-vaunted electric car, General Motors (GM) is hoping that a price cut will make it more attractive to car-buyers.
The nation’s largest automaker will add more incentives that will reduce the price of its Chevrolet Volt by another $4,000 for 2013 models. 2012 Volts will see their prices fall $5.000. The Volts already qualify for $7,500 in federal tax credits, the Detroit Free Press notes.
Taken together, the available incentives will drop the purchase price of a Volt down to $28,495. Customers who prefer to lease their Volts can also get an incentive to reduce their costs.
Despite efforts to promote the vehicle, GM sold just 1,607 Volts last month, down 4.3%. Declining Volt sales come as overall car sales jumped 8.2% in May.
Last year, reports emerged that GM loses as much as $49,000 on each Volt it manufactures. GM issued a statement contesting the figure.
In August, the company temporarily stopped Volt production for the second time in order to reduce existing inventories of unsold Volts.
Shares of GM fell more than 1% in Tuesday morning trading.