In a plan General Motors submitted to Congress recently, we found out that the Volt will cost them about $750 million to develop before it is finally completed. Developing a hybrid, electric, or in the Volt's case an extended range electric vehicle (fancy for plug in hybrid), is very costly. The Volt uses a new engine platform, plus the batteries have to be developed and go through extensive testing. Making things worse for GM, the Volt will not be profitable for the first few years.
Link: AutoblogGreen