Posted on 10/02/2012 12:49:55 PM PDT by jazusamo
General Motors reported that it sold 2,851 Chevy Volts in September. The number is sure to be touted as a great success, even though the annualized rate of sale is still well below initial sales goals for the vehicle and no where near what conventionally-powered, mainstream cars sell. What is sure to be less publicized by the media is that the majority of the Volt "sales" were heavily subsidized leases that are costing taxpayers millions of dollars.
GM spokesman, Jim Cain, told me that a full two thirds of Volt sales were leases. Backing out leases and fleet sales, about 900 of September's sales were to retail customers with about a 100 going to fleets. As previously reported, many of the leases are for two year terms that can cost lessees as little as $4,000 to $5,000 out of pocket as taxpayers are on the hook for the federal subsidy of $7,500 per vehicle which goes to dealerships to lower the cost of the leases. So taxpayers are actually paying over 50% more than lessees in many instances. It is important to remember that the "cost" of a Volt does not come down because of subsidies; it is only borne by others who are paying for the subsidies.
Drivers of the Chevy Volt can expect to get about 30 to 35 miles on a charge before switching over to premium fuel. The vehicles also use a small amount of gas while in electric mode. Comparing the Volt to a fuel efficient, conventionally-powered car therefore gives evidence that the gas saved is about a gallon of gas a day under a scenario where the car is driven over 30 miles a day. So, under what would be near optimal conditions, the Volt will save under 750 gallons of gas over the span of a two year lease. That will save drivers almost $3,000 in gas while costing taxpayers $7,500, or over $10 for every gallon of gas saved.
The approximate 1,850 September Volt leases will cost taxpayers about $14,000,000 in federal tax subsidies. It is hard to argue that the money is well-spent, given the limited benefits to gas consumption. But I'm sure Volt proponents will do their best to justify the wasteful spending of other people's money. It does not seem that logic has any place in a debate regarding the Volt and electric car subsidies; particularly with the presidential election so close and the incumbent campaigning on a green agenda and the perceived success of GM.
Mark Modica is an NLPC Associate Fellow.
Clearly gas prices aren’t high enough. /s
Yep, but Obummer and Government Motors are working on it.
It’s worse than that.
All the plug in electrics do is store hydrocarbons in a different form (for the most part). So there is little energy saved.
So the headline is that it costs taxpayers $10 per gallon equivalent to transfer the energy production from a refinery to a power plant.
The question is: why? Why are we collectively poorer for nothing?
Odungomobile....figures
Maybe they should put keys in boxes of Wheaties or Coco Puffs and give them away.
What I never see is how much it costs in increased electricity bills.
Plugging it in at home isn’t free.
It may not be much more than a standard battery charger, but that is a good question. I’d look at one if they were around the $15K price range but that ain’t happenin.
Agreed, and that recharging cost will vary greatly across the country depending on the cost per kw.
“It may not be much more than a standard battery charger, but that is a good question. I’d look at one if they were around the $15K price range but that ain’t happenin.”
Well, I have a golf cart which has six 8 volt batteries. When I plug it in to charge the batteries, my electric meter takes off like a spinning top, and it takes about 6 hours to get the batteries fully charged.
Thanks for link.
That’s a massive improvement over the Navy using $26/gal bio-diesel to power destroyers. A win this big simply couldn’t occur without government involvement, that’s the lesson to be drawn.
VOLT + OBAMA = .5 VEGA
Does GM offer $0/$0/$0 leases on the Volt with a very high residual to people with sub-600 credit and no cash? I’m in the market...
P.S. How difficult is it to “fix” the odometer on the Volt? , Does DashPro offer service for that car?
How many to citizens?? I bet the Gov bought 99% of those!!
That is the core of the issue.
Of course, from the "Green" point-of-view, it will eventually transfer the energy production to windmills and solar panels [all nonsense, of course,] which, themselves, require even more subsidies.
And so it goes. Such is a planned economy.
It's a 16 kWh battery. If charging were perfect that would be about $2 in electricity. But charging heats the battery instead so count on $3 to start and $4 as the battery gets older. GM says $1.60 a day but that probably assumes you aren't running the battery to zero (the car probably doesn't let it get to zero). At that point the car switches to premium gas.
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