Skip to comments.Chevy Volt Costing Taxpayers Up to $250K Per Vehicle
Posted on 12/21/2011 1:02:05 PM PST by Attention Surplus Disorder
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 Volts 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.
Its 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 theyve 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 battery 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. Thats 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. Its 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.
....and they come with a Obama 2012 sticker already on the bumper.............
Probably costing us Michigan residents a few bucks on top of that.
Federal subsidies—The gift that keeps on taking(from the taxpayers)!
They’d might as well go whole hog, and subsidize them completely. Then they could drop Chevy Volts out of helicopters, the same way that Ben Bernanke drops paper money.
A Volt in every driveway! Merry Fitna!
Since it works for health care, the government needs to mandate that everyone must buy a volt or they will be fined.
If Ford came uot with either a electric Mustang that would perform like a Mustang and/or an electric F350 that could Haul more then a peice of cardboard, I would look into it. Ford is the company I would buy my next vechile from.
I just saw (for the first time) a smart car...my golf cart could survive better in a crash then that!!
own or home or face a fine!
Why even have a price for these things? With that much subsidization, why not make them free?
Has anyone seen one of these on the road? I haven’t.
I'm with you. My next car will not come until after Obama is out, since I do not want my spending to support his regime, but when I buy it will be Ford or foreign. I am boycotting GM and Chrysler forever because of the massive corruption of the bankruptcy and Bailout. And, yes, I like your taste in hypothetical Ford electric cars.
I would love to buy 2 things: a Panoz (the 4th largest American car company) or a Avanti (if they are still in business). I would buy a foreign car that is made in the USA, but I won't buy a VW (UAW talking to VW about unionizing the TN plant).
I’ll gladly sign a pledge to NOT buy a Volt in return for half the subsidy amount...
That brings back some memories...
Love the old SNL episodes.
Typical volt buyer:
1. $170,000 per year
2. Government employee
3. Union member
4. Obama voter
5. Drooling liberal buffoon
"While much less than the hundreds of billions of dollars that Japanese and Korean auto and battery manufacturers have received over the years, the investments provided by several different Administrations and Congresses to jump-start the country's fledgling battery technology and domestic electric vehicle industries (not just specifically for the Volt as Ford's offering will also use LG Chem batteries and Fisker will use the A123 system for example) matches the same foresight and innovation leadership that other countries are exhibiting and which America has historically taken pride in."
As my mother might have said, "If all the other countries jump in the lake, do we have to, too?"
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