| Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. General Motors surprised industry watchers last week when announcing it would build a new version of the Chevrolet Bolt. It turns out the carmaker simply can't afford to let the compact model die. Just over three months ago, GM said it would convert the Bolt factory in suburban Detroit to make electric pickup trucks. The expectation long was that the car would disappear after a costly recall due to rare battery fires. Instead, the all-new Bolt will be packing the company's latest Ultium cells. A new Bolt makes sense if GM is serious about bringing EVs to the masses. Whereas other GM plug-ins such as the Cadillac Lyriq, Chevrolet Blazer or Chevrolet Silverado command premium prices, the Bolt is one of the few models with the the potential to ship in the numbers needed that can help Ultium reach the majority of American consumers. GM has two US battery plants and two more in the works. When GM recently disclosed that the electric Blazer went into production, buried in the statement was news that it axed the entry-level LT1 version of the EV that was supposed to start around $45,000. The cheapest electric Blazer will cost $56,715. That's a lot to ask from fans of the model. The gasoline version starts at just $35,400. Chevy has said that it will offer the Equinox EV, also due to start production this year, in a $30,000 version. But with the cheap version of the Blazer killed before it was ever built, we'll see where pricing for the SUV really starts. It better be affordable. The market for $50,000 cars in the US is roughly 4 million units a year, while $25,000 models have historically sold 13 million, according to BloombergNEF. That means the Blazer will compete against premium offerings from Tesla, Ford, Hyundai, Kia and Germany's luxury-car makers. If GM and the rest of the industry want to start building scale to lower battery costs, they need to ship more EVs. It won't be possible to create a low-cost battery industry — much less combat climate change — selling a few million pricey plug-ins in the US and a similar subset in other major markets. The Bolt, which currently starts at $26,500 and could cost less than $20,000 with a federal tax credit, sits almost alone as an EV in that price point. Volkswagen is readying a compact EV priced at less than €25,000 ($27,370), but it's a couple of years away from production. Stellantis, which owns the Jeep, Ram and Dodge brands, is also looking in that direction. The company's Fiat 500 EV, due in the US early next year, is expected to start around $30,000. "My idea is not to target those who have a Tesla," Fiat CEO Olivier Francois told Bloomberg in a recent interview. "The idea is to get in the driveway of those who have two or three cars and want a first EV, for people who have a day-to-day urban routine in places such as New York, Miami, LA." There already is a push to make existing EVs more affordable as several carmakers try to push volumes at the cost of profitability. Ford has followed Tesla in slashing prieces, warning the losses of its EV program will balloon from $3 billion to $4.5 billion. In the US, tax incentives and subsidies included in the Inflation Reduction Act are expected to help automakers strengthen the margins of their EVs, but more affordable models will be key to get more of them on the road. Tesla may have paved the way for EVs, but cheaper models like the all-new Bolt may ensure they're cruising into the mainstream. — With Albertina Torsoli. Sadiq Khan. Photographer: Carlos Jasso/Bloomberg London Mayor Sadiq Khan on Thursday announced plans to boost subsidies for scrapping old cars — part of an effort to reduce air pollution and fossil-fuel emissions. The mayor is preparing to expand the Ultra Low Emission Zone to London's outer boroughs this month, a move that has been blamed for the Labour Party's surprise defeat in a recent special election. Every Londoner with a car that isn't compliant with the new rules will be eligible for a £2,000 ($2,543) grant to upgrade their vehicles. Small businesses can receive up to £21,000 to scrap up to three vans. | 
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