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SENTRY JOURNAL » Barack Obama, Chevy Volt, doc zero, environmentalism, GM, government bailout, hotair, human events, John Hayward, nissan leaf, tax money » What a Shock

What a Shock

by RightHandMan

The Chevy Volt is Motor Trend’s car of the year (and green car of the year). Of course, I don’t know why. I’ve read very little that would entertain such an honor. GM said that this was going to be an “all electric car“, but it isn’t even close. The car can only go about 25 to 50 miles on battery power alone before it kicks over to gas. Not just any gas, mind you, but the most expensive gas – premium unleaded only. If you use any other gas your warranty will be voided.

Here in lies the problem; the American people are being duped by the left into buying these cars though the world isn’t ready for them. How is the world not ready for them? Simple…the price.

First, the car costs $41,000 at its base price ($33,500 after a government subsidy of $7500). That alone will turn away most consumers for cheaper economic cars like the sub-$20k Honda Civic and Ford Fiestas/Focuses. Second, nobody wants to buy a $32,000 car for its economic strengths just to pay 30 cents/gallon more for gas. Add to that the price to recharge your 16 KWH battery at a U.S. off-peak price of 10 cents/KWH (and depending on where you live, will be more expensive than gas). Then add to that the cost it will take to install the special meter to measure off peak costs. Pile on top the cost it will take to have a professional and inspector to install the charger into your home. Add to that the cost of the battery if it goes out after the 8 year warranty. Oh, and consider that you won’t be able to shop around when you need maintenance done – you’re stuck with a Chevy dealership.

Of course, these are the more obvious consumer costs. A great friend to The Current, Doc Zero (aka John Hayward), and now a writer for Human Events, posted earlier in the year on Hotair some info about what this car costs the tax payer.

Almost four hundred million dollars in federal subsidies were pumped directly into the design and production of the Volt. The initial production run consists of just ten thousand units, with 45,000 more planned for 2012 if sales are good. This would add just over $7200 more in taxpayer subsidies to each Volt produced over the next two years. Since 2012 production will be scaled back if early sales are disappointing, it might be more logical to add the subsidies to the first 10,000 units only, which would leave early adopters outside of California paying $33,500 for a car which actually costs $81,000 per unit, with taxpayers picking up the remainder. It’s actually even worse than that, because GM expects to lose money on every Volt sale. Those losses will be spread among other GM products, or perhaps wiped out with further taxpayer subsidies.

Of course we cannot stop there. He goes on to point out that we, the tax payer, already spent $50 billion to bail out GM – or more accurately, keep the auto union workers working. How much of that $50 billion could we say contributed to the Volt?

Since John wrote the story a few additional tax dollars were thrown at the Volt. There is another $2000 tax credit that will be given to cover the charger, bringing that tax credit up to $9500 per vehicle. Tax payers also paid $240 million for the Volt through Department of Energy grants and another $150 million to the Korean company that makes the Volt’s batteries. Are you getting the point?

Of course, when you’re getting this much money from the tax payers, and have the President publically propogating you, how do you lose? GM has become the poster child of the Green Machine. The broke federal government gives billions to penniless GM, tells them to create junky machines with their newly acquired public funds, and then GM turns around and pumps millions into clean energy initiatives. Does this sound like a money laundering scheme to anyone else?
What makes this more painful is that Nissan’s Leaf, to come out in 2011, has a 100 mile range (2.5-4 times further than the Volt) and will be nearly $9000 cheaper than the Volt. GM lied to us in order to justify the funding and then produced a dud…and did I mention that you and/or your rescuers can be electrocuted if you get in a wreck?

The whole thing stinks like green house gas – the real drive behind this product, not demand. I’ve said it before and I’ll say it again, electric cars (or something like them) will undoubtedly be our future, but that’s the future. Electric cars will only be in demand when they’re cheaper than the gas guzzling cars we have now. Until then, the environmentalists have two options, to cry themselves asleep as we bask in the warmer climate or force us to pay for this nonsense.


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Filed under: Barack Obama, Chevy Volt, doc zero, environmentalism, GM, government bailout, hotair, human events, John Hayward, nissan leaf, tax money

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