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When Figures Lie: Chevy Volt Puts the Government in Government Motors
Townhall.com ^ | September 1, 2012 | John Ransom

Posted on 09/01/2012 4:43:37 AM PDT by Kaslin

If there was any doubt from skeptics about the complicity of the Obama administration in creating and directing the “new” General Motors –a.k.a Government Motors- the latest ballyhoo regarding sales figures and the Chevy Volt should convince even the doubters.

GM: Aug. Volt sales best yet says the Detroit News.

GM Expects Volt Sales to Set Monthly Record says the normally sane Wall Street Journal.

Chevy Volt broke monthly sales record in August reports the Associated Press.

But like a lot of claims coming from Obama or one his corporate surrogates, the Volt sales numbers surely aren’t signs of success, but rather just the opposite. And if the doublespeak doesn’t point to government involvement in the development, sale and ultimate failure of the Volt, it certainly betrays a government mentality that believes that perception matters more than results.

And the difference between Obama’s perception and the actual results in our economy is the chasm where all of our jobs have gone. 

Because General Motors has sold only half the number of Volts that they said they would this year, and the company is idling the Volt production line to retool it for a car that’s actually selling: the Chevy Impala.

Investors aren’t fooled, even if some journalists and a few metroed, urban hipsters are.

From MarketWatch:

GM has suspended production of the all-electric car for a month so they can retool the plant to make more Chevy Impalas. Read more about the Volt’s production issues.

But not many are buying the company’s explanation or the car, for that matter. So far this year, GM has sold about 11,000 Volts — far less than hoped and planned for by the auto maker. The market has spoken: Most Americans simply are not ready for an electric car from Detroit.

They’re not ready, because unlike the president and his one percent crowd, Americans make decision on car purchases based on economics.

The website ExtremeTech calculates that the car costs about 6.3 cents per mile when running on electricity at 13 cents per kilowatt hour. But that rate ignores depreciating the cost of a replacement battery ($8,000) over the life of the battery warranty.

When you add in the cost of the battery depreciation, you get a calculation of about 14.3 cents per mile for the Volt. As the tech site notes: “A compact car getting 35 mpg would cost 10 cents per mile using $3.50-a-gallon gasoline.”  So in other words, the Volt, in addition to the high cost to purchase, costs 43% more to operate than a conventional car.

That’s why the Volt is the perfect car for the Occupy Wall Street crowd: It makes no economic sense no matter how convoluted its supporters make the economic argument or how much taxpayer support it’s given. 

The Volt initially relied heavily on $7,500 federal government subsidies- and even then couldn’t make a go of it.

This marks the second time that GM has idled Volt production, while claiming “All is well.”

So now I’m wondering if former Ford Executive and the U.S. Defense Secretary who presided over the Vietnam War, Robert McNamara, is in charge of public relations for GM.

If the Volt’s not in the federal witness protection program, it ought to be.

“Sales also took a hit last fall when the National Highway Traffic Safety Administration opened a probe into why two Volts burst into flames days or weeks after severe NHTSA crash testing,” reported USA Today.

Leaks from the cooling system were caused by shortages in the electrical system that prompted the fires. But the discovery came only after weeks of bad press for GM. Eventually the car company offered to buy back every single Volt for any consumer who was unhappy.

But lack of sales and spontaneous fires haven’t stopped the government-owned car company from mapping out a marketing strategy that might have been fashioned by the marketing geniuses of the IRS and the United States Postal Service combined: “The Volt’s technology and its recent accolade from Consumer Reports make the Volt a marketing tool for Chevy,” said Alan Batey, vice president for Chevrolet U.S. sales, at the beginning of December according to Bloomberg “This vehicle is about more than how many we sell,” Batey said. “This vehicle is a magnet around everything we are trying to do to showcase our brand.”

Only someone infected by the government bug would say that the success of a car company isn’t about the actual numbers of cars they sell.

But maybe that’s because the company has bigger problems than just the Volt.

The Chevy Cruze, which is the same car, right down to the lug nuts as the Chevy Volt, only minus the voltage, is being investigated for engine fires that Reuters says “in many cases completely engulfed the vehicles in flames.” 

So, let me be the first to apologize to General Motors.

I’ve been complaining about the supposed environmental benefits of the Volt, of the subsidies to the Volt compared to the Cruze and the of the $23,000 difference in sticker price between the Cruze and the Volt.

I was wrong.

Quite obviously you were right, General Motors.

The environmental benefits of the Volt- which reports have shown only create relatively small fires contained in the engine compartment of the Volt- far outweigh the fires in  conventional General Motors cars, like the Cruze, which may engulf the entire vehicle in flames.  

Score one for Government Motors.

And notify the EPA, EMS and other first-responders. 

Because I’m sure the out-of-work geniuses in solar industry are pitching Obama right now on an even more expensive and dangerous concept car.  


TOPICS: Business/Economy; Editorial
KEYWORDS:

1 posted on 09/01/2012 4:43:40 AM PDT by Kaslin
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To: Kaslin

GM is the classic example of what happens when government tries to actually produce a profit in the free enterprise world. My tagline explains all.


2 posted on 09/01/2012 4:46:57 AM PDT by DH (Once the tainted finger of government touches anything the rot begins)
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To: Kaslin
But that rate ignores depreciating the cost of a replacement battery ($8,000) over the life of the battery warranty.

The electricity recharging the battery has a cost as well, and more coal used at the power plant.

3 posted on 09/01/2012 4:51:05 AM PDT by AU72
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To: Kaslin
Government running business by people who never ran a business. Academia mental illness.
4 posted on 09/01/2012 4:53:10 AM PDT by ronnie raygun (bb)
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To: ronnie raygun

Yep, isn’t that something.
Govt types think they can run a business, but run down business people who run for office claiming that a businessman cannot run government.


5 posted on 09/01/2012 4:59:25 AM PDT by Texas resident (November 6 - Vote Against obama)
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To: Texas resident

Chevy Volt sales redocrd? What? Maybe they sold 17 more this year than last.........Wow, some record.


6 posted on 09/01/2012 5:09:46 AM PDT by DaveA37
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To: Kaslin

But not many are buying the company’s explanation or the car, for that matter. So far this year, GM has sold about 11,000 Volts — far less than hoped and planned for by the auto maker. The market has spoken: Most Americans simply are not ready for an electric car from Detroit.
...........................................................II am ready for an electric car.

One that sells for under $20,000 dollars goes 350 miles on a charge and take 10 minutes to recharge at any 110 volt outlet.The battery has to last for 150,000 miles and cost under $1,000 dollars to replace.

Oh!!! The heater and the air conditioner have to work and only reduce my mileage by 10%.

I will buy one tomorrow that fits that bill.


7 posted on 09/01/2012 5:14:58 AM PDT by Venturer
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To: Kaslin

October surprise? - Maybe Soros will bid GM stock up to $53 so Obama can break even, claim victory, and buy another election.


8 posted on 09/01/2012 5:15:46 AM PDT by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: Kaslin
When you add in the cost of the battery depreciation, you get a calculation of about 14.3 cents per mile for the Volt. As the tech site notes: “A compact car getting 35 mpg would cost 10 cents per mile using $3.50-a-gallon gasoline.” So in other words, the Volt, in addition to the high cost to purchase, costs 43% more to operate than a conventional car.

I wonder how they come up with these figures without using the number oif miles that need to be driven to make the numbers have meaning?

I have no doubt the Volt is much costlier to operate (and even higher without the "Gov't" rebate at our expense, but the equation is missing a vital part.

9 posted on 09/01/2012 5:16:17 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: Kaslin
GM is a classic model of socialism in action - government picking a "favorite" and directing a public business with no accountability to other shareholders whatsoever. They've basically come up with a marketing campaign for a vehicle who's primary targeted demographic group is unicorns that poop skittles. Well done, GM, at least Hitler would be proud that such a formerly great American manufacturing institution embraced his economic policy.

I have great plans for their next marketing campaign. How about: "GM - at least we're not Facebook!"

10 posted on 09/01/2012 5:17:51 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Kaslin
The Volt initially relied heavily on $7,500 federal government subsidies Our stinkin' TAXES!!! - and even then couldn’t make a go of it.
11 posted on 09/01/2012 5:19:44 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: OrioleFan
October surprise? - Maybe Soros will bid GM stock up to $53 so Obama can break even, claim victory, and buy another election.

That would be quite some effort, yes? I mean, most people participating in that outside of the conspirators would be looking at their future. All I see is a cliff and a herd of lemmings driving Volts for GM.

Well, suffice to say if it happened it would be a "surprise". Then, why put anything beyond these people.

Cheers...

12 posted on 09/01/2012 5:21:35 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: AU72

———The electricity recharging the battery has a cost as well, and more coal used at the power plant. -——

Ahhh, there they have you. Coal will not be the costly fuel. The recharging will be free, no recurring cost.

The secret is to recharge the batteries at night using the fabulous L/S panels. The Lunar/Stellar panels generate the voltage for night recharging. These panels are in development and will be released to the market as soon as the bugs are worked out of the light amplification system.


13 posted on 09/01/2012 5:22:24 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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To: Kaslin
Alan Batey, vice president for Chevrolet U.S. sales, at the beginning of December according to Bloomberg “This vehicle is about more than how many we sell,” Batey said. “This vehicle is a magnet around everything we are trying to do to showcase our brand.”

Call my broker, I'm putting everything into GM!!!

*BARF*

14 posted on 09/01/2012 5:28:13 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Caipirabob

If they are showcasing stupid management & poor fiscal policy - they are right on target


15 posted on 09/01/2012 5:36:52 AM PDT by KSCITYBOY
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To: AU72

“The electricity recharging the battery has a cost as well, and more coal used at the power plant.”

Have no fear. The Illegal will soon close all those horrible, smelly, smokey coal plants and replaced them with wonderful, clean windmills and solar panels that will give us all the electricity we need for our electric golf carts.


16 posted on 09/01/2012 5:36:57 AM PDT by libstripper
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To: Venturer
One that sells for under $20,000 dollars goes 350 miles on a charge and take 10 minutes to recharge at any 110 volt outlet.

Most of these in your home are rated at 15 amps, so the maximum power one can expect is 1650 watts. So you'd get 275 kilowatt hours of power for 10 minutes.

Some in you kitchen are rated at 20 amperes - thus 2200 watts available or 367 KWHs.

You MIGHT have one in the garage rated at 30 amps; getting 3300 watts; with 550 KWHs maximum.


Most folks in government either FAILED their high school physics classes or never took any!

Any senior that has just received a passing grade could tell you how much ENERGY it takes to accelerate a given MASS to a certain SPEED.

17 posted on 09/01/2012 5:38:26 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: trebb
I have no doubt the Volt is much costlier to operate (and even higher without the "Gov't" rebate at our expense, but the equation is missing a vital part.



18 posted on 09/01/2012 5:43:46 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: bert
The secret is to recharge the batteries at night using the fabulous L/S panels. The Lunar/Stellar panels generate the voltage for night recharging. These panels are in development and will be released to the market as soon as the bugs are worked out of the light amplification system.

You have got to BELIEVE; man!

19 posted on 09/01/2012 5:47:17 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: KSCITYBOY
If they are showcasing stupid management & poor fiscal policy - they are right on target

These, ahem, qualities do not matter; as the folks doing all the heavy lifting just want to help me and my family!

20 posted on 09/01/2012 5:48:34 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Caipirabob

“This vehicle is a magnet around everything we are trying to do to showcase our brand.”

21 posted on 09/01/2012 5:52:28 AM PDT by Right Wing Assault (Dick Obama is more inexperienced now than he was before he was elected.)
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To: Elsie
Most of these in your home are rated at 15 amps, so the maximum power one can expect is 1650 watts. So you'd get 275 kilowatt hours of power for 10 minutes.

Actually, that would be 275 watt-hours, not 275 kwh.

0.275 kwh.

22 posted on 09/01/2012 5:59:00 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: trebb

“When you add in the cost of the battery depreciation, you get a calculation of about 14.3 cents per mile for the Volt. As the tech site notes: “A compact car getting 35 mpg would cost 10 cents per mile using $3.50-a-gallon gasoline.” So in other words, the Volt, in addition to the high cost to purchase, costs 43% more to operate than a conventional car. “

Wrong: A Democratic-controlled government will fix this. Recalculate these figures with gas at $15.00/gallon. See? Problem solved!


23 posted on 09/01/2012 6:34:04 AM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: DuncanWaring

You’re right. It’s 275 Watt-hours. One can’t get 275 kWh of power for 10 minutes, but one can get 1650 Watts for 10 minutes. Watts and Watt-hours are not the same. One is a measurement of power, the rate at which energy is generated or used. The other is a measurement of energy, how much power is generated or used over a period of time.


24 posted on 09/01/2012 7:14:21 AM PDT by CitizenUSA (Why celebrate evil? Evil is easy. Good is the goal worth striving for.)
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To: bert
The secret is to recharge the batteries at night using the fabulous L/S panels. The Lunar/Stellar panels generate the voltage for night recharging. These panels are in development and will be released to the market as soon as the bugs are worked out of the light amplification system.

No way man, you KNOW the Oil Companies are going to shut that down, just like they did with the 100 mpg carburetors.

25 posted on 09/01/2012 7:46:24 AM PDT by Paradox (I want Obama defeated. Period.)
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To: Elsie
AHEM.... you wrote kilowatt-hours when you meant watt-hours.

But, as Isaac Asimov once said, what's three orders of magnitude among friends?

≤}B^}

26 posted on 09/01/2012 8:34:18 AM PDT by Erasmus (Zwischen des Teufels und des tiefen, blauen Meers)
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To: Kaslin

While Obama is pushing electric cars, he is also making it very clear that he intends to drive our electric costs to 4 or 5 times the cost of a kwh that we use today.

So-—those figures quoted in this article would be 4 to 5 times as expensive for an electric car.


27 posted on 09/01/2012 8:54:03 AM PDT by ridesthemiles
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To: Kaslin

The Obama administration doesn’t solve problems it subsidizes them.


28 posted on 09/01/2012 10:50:15 AM PDT by Vaduz
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To: DH
GM is the classic example of what happens when government tries to actually produce a profit in the free enterprise world.

Actually, the classic example happened when the Government took over The Mustang Ranch, a brothel in Nevada, over tax issues.

Despite having extensive experience screwing anyone and everyone, the Government did not have the business sense to run the operation at a profit.

29 posted on 09/01/2012 3:33:01 PM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: DuncanWaring

See there; I used to WORK for the gummint!

I wuz only off by a factor of 1000!


30 posted on 09/01/2012 7:01:48 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Erasmus
But, as Isaac Asimov once said, what's three orders of magnitude among friends?

Indeed!

I should have Googled® it!

Uh; what IS google/1000 anyway?

31 posted on 09/01/2012 7:03:35 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: ridesthemiles
While Obama is pushing electric cars...

Not THERE is a mental image!

If you run out of gas; you can dump a gallon or so in the tank and be on your way.

If you run out of volts; it's Lizard Lick Towing; at your service!

32 posted on 09/01/2012 7:05:21 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Elsie

That would be a milligoogle.


33 posted on 09/02/2012 11:10:43 AM PDT by Erasmus (Zwischen des Teufels und des tiefen, blauen Meers)
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