Tax credits do not exist all over the world and they won't have the 200,000 phase out limit. For the Volt to be a global car, it needs to be designed with the MSRP. The tax credit blessing can work against GM in the next gen. The current Volt is already maxing the tax credit with 16 kWh pack. Increasing the battery capacity would not get any more tax credit. Toyota can increase the battery size of the PHV battery size and the qualified tax credit will increase. GM will need to lower the price, lower cold start emissions, increase CS MPG and interior volume to midsize 5 seats. The goals of the concept Volt was below $30k, 50 MPG and 40 miles EV range. Those are huge milestones still yet to achieve. At $30k, it needs to compete with the midsize Prius because the compact 50 MPG Prius c starts at $19k. Toyota simply need to add more battery which will be offset by tax credit. The ground work of not increasing carbon footprint (per the state of the grid) for Prius PHV has been done. Next gen will follow that ground work and increase the electric motor power and PHV battery size accordingly, while balancing out the various government incentives all over the world.