"Sadly the Volt is a perfect example of what happens when the government gets involved..." No, the Volt was in design and development WAY before the Bush-era bailout, before the Obama-era bailout and expedited bankruptcy. Sorry, can't lay any perceived shortcomings of it on the government's feet. Well, any more than any car that must meet emissions, crashworthiness, etc, etc.
It _is_ very expensive for a compact car, which is why the average buyer high-income. GM says they are working on a less-expensive version. The CEO challenged the engineers to take something like $10K out of the cost. That would get it down near regular car prices.
Prius battery packs don't typically need replacement at 5 years, do they? I know their battery chem is different, but the Volt already has a lot of battery management built in, both thermal and electrical, so the vast majority of the Volts will go far longer than 5 years with their original pack. YMMV.
Hairyfeet, you are thinking of the Tata Nano. Very lightweight, made with inexpensive components. If you saw it in person, I'm not sure you or many other Americans would trust that it would be safe on our roadways. Although I agree that there is room in the market for a far less expensive vehicle than what the traditional automakers are now selling.