With Toyota unveiling its third generation Prius, it's time to ask whether GM's Volt will be able to match the competition. Or for that matter, save GM. We read in the report here that the car comes with a new four cylinder engine with more horsepower and special braking, which recaptures the energy lost and stores it in its hybrid batteries.

You would have to say that if GM is pinning it's hopes on the Volt, it's dreaming. According to the data here, the Volt's electric motor won't take you that far, just 40 miles, but then that's suited for today's average commute. The real problem is that the new Prius will be selling for $22,000-$28,000 while the Volt will sell for about $40,000 when it goes on the market late next year.

As the Washington Post's Michael Leahy writes, GM itself has mixed feelings about the Volt. It's summed up in the words of GM's vice chairman Bob Lutz. "If you look at most of the mainstream media, you get the impression that 95 percent of Americans today want a vehicle like the Chevrolet Volt or a [hybrid such as the] Toyota Prius. And that, by God, the reason General Motors is in trouble, is that we have not offered a vehicle like that. But when you look at the reality, at today's fuel prices, most Americans still want a conventional car." GM is going with the Volt, he says, because it's an important symbol and gives the company a chance to change its image. Nothing to do with saving the planet or creating a greener car industry.

It's the kind of knee jerk response and hubris that forced GM into bankruptcy. It's a point I examine in my column here.

Still, if there is anything that will guarantee sales of the Volt it's one thing. With the US taxpayers now holding 60% of the company, the Volt will be backed by the US Government.