In terms of efficiency and performance, the Volt will probably outperform the Prius. It has a 40-mile battery range (more than the average American drives per day) and GM claims that when the battery dies, it will be recharged by a fuel tank at about 100 mpg.
Realistically, the Volt most likely won’t compete unless Chevy can get the price tag way down. GM has not announced an official price, and they have pushed for a $7500 consumer tax credit to offset some of the cost, but price estimates are around $40,000. The Volt will also only be released in limited quantities.
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