How is this news? Anyone that actually read any info on the car at all should know that if the car doesn't start with a charged battery it will not get infinity mpg. The whole point of this setup was that if you drive a commute day-to-day and plug the car in at night you will never need the gasoline generator to fire up and will essentially travel gasoline free. Gm never hid any of this and has always disclosed that this system is basically an electric drivetrain with a range extending gasoline generator. They just put up the mileage they returned using the EPA testing methods. The EPA testing methods give the Volt an unfair advantage, so while not a lie it is indeed misleading if people are dumb enough not to actually look at how the tech works.
In EPA style testing they were testing the car starting with a charged battery. For alot of people that never really need to go beyond the electric range of the car, you could go months without needing to put gas in the car. Once the battery dies however, the gas engine kicks in and has to recharge the battery. After that you will obviously not be getting the same mileage as you would if the gas engine was competely shut down running on straight electric. Once the batteries are drained the small generator has to charge the 4000lb car while you're still driving it around, of course the mileage won't be stellar. Toss a .9L engine in a Mustang and try driving the car like a normal car, you'll be lucky to see 12mpg.
There is a huge difference between this and the system used in the Prius/CR-Z/Insight/Escape etc. Those are gasoline powered cars that use an electric generator in place of a flywheel. They shut the gas engine off when the car stops, and use the braking system to generate power for the battery packs, but those cars cannot run on straight electricity. This system is an electric drivetrain with a generator hooked up to it. You could take the gas engine out entirely and still drive the car as far as the batteries hold a sufficient charge which is more than enough for many people's daily commute.
I've said it before and wil say it again. If battery tech can improve (and not be such an environmental nightmare to mine) to the point that the electric range is in the hundreds of miles, the batteries shed hundreds of pounds, and GM can get the generating efficiency higher, this could be a technolgy that actually works. The Volt is not at that point obviously, but unless people start trying to devellop new tech and new ideas it will never improve.