Why GM is cutting the Chevy Volt's price

DETROIT - General Motors (GM) is knocking nearly $1,200 off the price of the 2016 Chevrolet Volt plug-in hybrid car.

The company says the new Volt will start at $33,995 including shipping when it goes on sale in the fall. The current version costs $35,170.

Prices do not include a $7,500 federal electric car tax credit.

The new Volt can go about 50 miles on battery power before a gasoline generator takes over. The current car goes about 38 miles on its battery.

GM says it can reduce the price because lithium-ion battery and other costs are coming down.

Sales of Volts and other battery-powered vehicles have suffered with gasoline prices nationwide averaging $2.60 per gallon. Through April, Volt sales are down 46 percent to 2,779.