GM cuts Chevy Volt price by $5000

General Motors has announced it will cut the price of the 2014 Chevrolet Volt by $5,000 in an effort to spur sluggish sales.

Arriving in U.S. dealerships later this month, the 2014 Volt will start at $34,995. The price cut means the Volt will appear in online shopping searches along with the better-selling Toyota Prius and Nissan Leaf.

"We have made great strides in reducing costs as we gain experience with electric vehicles and their components," Don Johnson, Chevrolet U.S. sales vice president, said in a statement.

Still, the Detroit-based automaker loses money on each Volt, though the company won't say how much. The statement noted, though, that Toyota's Prius was the car most frequently traded in for a Volt.

"GM is getting with the times," said Michelle Krebs, a senior analyst with auto price-tracking website Edmunds.com. "Consumers want electric and plug-in hybrid vehicles at prices competitive with other vehicles without the advanced technology."

The Volt is eligible for a $7,500 tax credit, potentially bringing the final 2014 price as low as $27,495. The 2015 Volt will reportedly cost $7,000 to $10,000 less.

The 2014 model will have the equivalent of 98 miles per gallon fuel economy on electric power and 40 miles per gallon when powered by its gasoline engine. The Volt can drive 38 miles on battery power before switching to gasoline, and has a 380-mile extended range.