The 2016 Chevrolet Volt range-extended electric car has been redesigned to lower its cost and make the new model more affordable to the public, said Green Car Report. Ideally, Chevrolet wants the 2016 Chevrolet Volt to be at least less than $5,000 from its predecessor, the 2014 model, the report added.

Originally, former General Motors CEO Dan Akerson said that their goal was to reduce the cost of the Volt by $10,000. GM has set this goal despite admitting the company is losing money for every Volt unit sold.

"Our ideal target would be $29,995--and, remember, the new Volt will still qualify for a $7,500 Federal income-tax credit plus various state and local incentives," Akerson said then.

Industry observers said that GM might keep the $35,000 price range for the premium model of the 2016 Chevy Volt and offer a lower base price for the low-end model or the car maker might offer a wider selection to buyers to bring the price back up.

The car industry expressed disappointment over the decision of GM to delay the nationwide rollout of the new generation Volt and only shipped the 2016 model to California and 10 other states. The rest of the U.S. will have to wait until January next year to get their chance of driving the new 2016 Chevrolet Volt when Chevy will launch the new PHEV nationally as a 2017 model, spokesman Randy Fox said.

Another major improvement for the next generation of the Chevy Volt is a slightly higher electric range. Its predecessor, the 2011 Volt, has a maximum 35-mile range, while the 2013 model has a 38 miles range. Reports said that GM will push for a 40-mile range for the 2016 Chevy Volt.

This decision was made after several studies have shown that almost four-fifths of U.S. vehicles travel 40 miles a day or less. GM also pointed out that the Chevy Volts cover almost two-thirds of all their miles driven on grid electricity used to charge their battery packs. More importantly, GM has to redesign the Volts' battery and make it smaller and less expensive to achieve its target of lowering the car's price.

Meanwhile GM has recently released its latest advertisement for the 2016 Chevrolet Volts that took a jab at Nissan LEAF and Toyota Prius.

A report by Charged said, "The 2016 Chevrolet Volt is a tour de force of engineering, a substantial step forward over its predecessor However, some EV industry observers fear that unless GM follows up on the technical improvements with some meaningful marketing, an area in which EV-makers have fallen short so far, sales will continue to be modest."

The latest ads for the 2016 Chevrolet Volts highlights the car's PHEV system as superior to other forms of electrification, particularly with the Nissan Leaf and the Toyota Prius. The ads were first rolled out via the Internet and will later be released on TV.

"We're going to go head-to-head with Leaf and Prius," said Chevrolet Global Chief Marketing Officer Tim Mahoney. "The ads allow Chevrolet to talk in one way and they allow Chevrolet's personality to come through. We're going to be taking more risks," he said.