Chevy Volt Costing Taxpayers Up to $250K Per Vehicle

  • Posted by a hidden member.
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    Dec 22, 2011 12:14 AM GMT
    Subsidies for the rich. Not that the average income of those who have a volt is 170K.

    http://www.michigancapitolconfidential.com/16192

    Each Chevy Volt sold thus far may have as much as $250,000 in state and federal dollars in incentives behind it – a total of $3 billion altogether, according to an analysis by James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.

    Hohman looked at total state and federal assistance offered for the development and production of the Chevy Volt, General Motors’ plug-in hybrid electric vehicle. His analysis included 18 government deals that included loans, rebates, grants and tax credits. The amount of government assistance does not include the fact that General Motors is currently 26 percent owned by the federal government.

    The Volt subsidies flow through multiple companies involved in production. The analysis includes adding up the amount of government subsidies via tax credits and direct funding for not only General Motors, but other companies supplying parts for the vehicle. For example, the Department of Energy awarded a $105.9 million grant to the GM Brownstown plant that assembles the batteries. The company was also awarded approximately $106 million for its Hamtramck assembly plant in state credits to retain jobs. The company that supplies the Volt’s batteries, Compact Power, was awarded up to $100 million in refundable battery credits (combination tax breaks and cash subsidies). These are among many of the subsidies and tax credits for the vehicle.

    It’s unlikely that all the companies involved in Volt production will ever receive all the $3 billion in incentives, Hohman said, because many of them are linked to meeting various employment and other milestones. But the analysis looks at the total value that has been offered to the Volt in different aspects of production – from the assembly line to the dealerships to the battery manufacturers. Some tax credits and subsidies are offered for periods up to 20 years, though most have a much shorter time frame.

    GM has estimated they’ve sold 6,000 Volts so far. That would mean each of the 6,000 Volts sold would be subsidized between $50,000 and $250,000, depending on how many government subsidy milestones are realized.

    If those manufacturers awarded incentives to produce batteries the Volt may use are included in the analysis, the potential government subsidy per Volt increases to $256,824. For example, A123 Systems has received extensive state and federal support, and bid to be a supplier to the Volt, but the deal instead went to Compact Power. The $256,824 figure includes adding up the subsidies to both companies.

    The $3 billion total subsidy figure includes $690.4 million offered by the state of Michigan and $2.3 billion in federal money. That’s enough to purchase 75,222 Volts with a sticker price of $39,828.

    Additional state and local support provided to Volt suppliers was not included in the analysis, Hohman said, and could increase the level of government aid. For instance, the Volt is being assembled at the Poletown plant in Detroit/Hamtramck, which was built on land acquired by General Motors through eminent domain.

    “It just goes to show there are certain folks that will spend anything to get their vision of what people should do,” said State Representative Tom McMillin, R-Rochester Hills. “It’s a glaring example of the failure of central planning trying to force citizens to purchase something they may not want. … They should let the free market make those decisions.”

    “This might be the most government-supported car since the Trabant,” said Hohman, referring to the car produced by the former Communist state of East Germany.

    According to GM CEO Dan Akerson, the average Volt owner makes $170,000 per year.
  • Posted by a hidden member.
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    Dec 22, 2011 12:47 AM GMT
    You should be applauding this, riddler! Obama is looking out for your peeps.

    Now, if they were helping poor people, I could see what you'd be upset.
  • Posted by a hidden member.
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    Dec 22, 2011 12:51 AM GMT
    More money being wasted by the government. I would hate to give Obama a credit card. He would max it out in 10 minutes.
  • Posted by a hidden member.
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    Dec 22, 2011 1:00 AM GMT
    CHRISTOPHER34 saidMore money being wasted by the government. I would hate to give Obama a credit card. He would max it out in 10 minutes.


    No he wouldn't. Most liberals are quite miserly with their own money.
  • Posted by a hidden member.
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    Dec 22, 2011 1:01 AM GMT
    riddler78 said
    CHRISTOPHER34 saidMore money being wasted by the government. I would hate to give Obama a credit card. He would max it out in 10 minutes.


    No he wouldn't. Most liberals are quite miserly with their own money.


    You bring up a good point. Liberals just like to spend other peoples money.
  • Posted by a hidden member.
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    Dec 22, 2011 3:09 AM GMT
    CHRISTOPHER34 said
    riddler78 said
    CHRISTOPHER34 saidMore money being wasted by the government. I would hate to give Obama a credit card. He would max it out in 10 minutes.


    No he wouldn't. Most liberals are quite miserly with their own money.


    You bring up a good point. Liberals just like to spend other peoples money.
    Awwwww...
    images?q=tbn:ANd9GcSPL9OyEYz1e097cjh087n"In September, 2008 the Big Three asked for $50 billion to pay for health care expenses and avoid bankruptcy and ensuing layoffs, and Congress worked out a 25$ billion loan.[83] By December, President Bush had agreed to an emergency bailout of $17.4 billion to be distributed by the next administration in January and February."


    Now, what were you saying? HUH?
  • Posted by a hidden member.
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    Dec 22, 2011 3:39 AM GMT
    TropicalMark said
    CHRISTOPHER34 said
    riddler78 said
    CHRISTOPHER34 saidMore money being wasted by the government. I would hate to give Obama a credit card. He would max it out in 10 minutes.


    No he wouldn't. Most liberals are quite miserly with their own money.


    You bring up a good point. Liberals just like to spend other peoples money.
    Awwwww...
    images?q=tbn:ANd9GcSPL9OyEYz1e097cjh087n"In September, 2008 the Big Three asked for $50 billion to pay for health care expenses and avoid bankruptcy and ensuing layoffs, and Congress worked out a 25$ billion loan.[83] By December, President Bush had agreed to an emergency bailout of $17.4 billion to be distributed by the next administration in January and February."


    Now, what were you saying? HUH?


    Ah so you think it's just a partisan issue. So just because the money is authorized it should be spent?
  • Posted by a hidden member.
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    Dec 22, 2011 3:39 AM GMT
    riddler78 said
    TropicalMark said
    CHRISTOPHER34 said
    riddler78 said
    CHRISTOPHER34 saidMore money being wasted by the government. I would hate to give Obama a credit card. He would max it out in 10 minutes.


    No he wouldn't. Most liberals are quite miserly with their own money.


    You bring up a good point. Liberals just like to spend other peoples money.
    Awwwww...
    images?q=tbn:ANd9GcSPL9OyEYz1e097cjh087n"In September, 2008 the Big Three asked for $50 billion to pay for health care expenses and avoid bankruptcy and ensuing layoffs, and Congress worked out a 25$ billion loan.[83] By December, President Bush had agreed to an emergency bailout of $17.4 billion to be distributed by the next administration in January and February."


    Now, what were you saying? HUH?


    Ah so you think it's just a partisan issue.
    Nope.. Im correcting your bud Christopher on his bullshit.
  • JP85257

    Posts: 3284

    Dec 22, 2011 3:58 AM GMT
    The auto companies should have met the same fate as other companies. Bankruptcy. After losing my ass in a small business (Im not saying the amount) It chapped my ass to see banks and car companies and others bailed out.

    Should NEVER happen in any circumstance. I dont care who's administration did what with the bail outs. They were ALL wrong.

    The better thing would to have written a check to tax payers individually.

    EGH....

    OH and if you dont want a Chevy Volt....Dont buy one.

    I will stick with Fords.
  • Posted by a hidden member.
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    Dec 22, 2011 5:19 AM GMT
    TropicalMark said
    riddler78 said
    TropicalMark said
    CHRISTOPHER34 said
    riddler78 said
    CHRISTOPHER34 saidMore money being wasted by the government. I would hate to give Obama a credit card. He would max it out in 10 minutes.


    No he wouldn't. Most liberals are quite miserly with their own money.


    You bring up a good point. Liberals just like to spend other peoples money.
    Awwwww...
    "In September, 2008 the Big Three asked for $50 billion to pay for health care expenses and avoid bankruptcy and ensuing layoffs, and Congress worked out a 25$ billion loan.[83] By December, President Bush had agreed to an emergency bailout of $17.4 billion to be distributed by the next administration in January and February."


    Now, what were you saying? HUH?


    Ah so you think it's just a partisan issue.
    Nope.. Im correcting your bud Christopher on his bullshit.


    That's nearly a full time job. icon_lol.gif