GM offering incentives to clear out Volt inventories

General Motors is throwing cash on the hood of its Chevrolet Volt plug-in in order to reduce inventories before the 2014 model arrives later this year.

GM confirmed to The Detroit News on Tuesday that is offering $4,000 off 2013 Volts and $5,000 off remaining 2012 Volt models in order to thin inventories before the 2014 model arrives later this year. Those incentives are in addition to the federal government's $7,500 tax credit and any other incentives offered at the state and local levels.

Additionally, GM is offering a zero percent financing deal for the Volt for 48 months that includes $3,000 cash back. Buyers can also choose a $269 per month lease deal that last for 36 months and requires a $2,399 down payment.

Although Volt sales inched up 1.4 percent to 7,157 units in May, the plug-in posted sales declines during the three previous months. As a result, GM now has a 140-day supply of Volts, or nearly double what is considered a normal level.

GM's Volt discounts aren't out of line with the overall industry as several other automakers have also reduced the prices of their electric vehicles. Nissan launched a cheaper version of its Leaf electric earlier this year and Honda recently cut lease prices for its Fit EV.

“The electric vehicle space is extremely competitive,” Chevrolet spokeswoman Michelle Malcho told The Detroit News. “There’s a lot of price competition.”