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Pentagon Plans to Buy 1,500 Chevy Volts
The New American ^ | September 12, 2012 | Brian Koenig

Posted on 09/12/2012 2:37:28 PM PDT by jazusamo

Pentagon Plans to Buy 1,500 Chevy Volts

General Motors, the financially-strained U.S. automaker that absorbed billions of taxpayer dollars through the auto bailout, has secured a new deep-pocketed customer for its purportedly failed electric vehicle — the Chevy Volt. That customer is the Pentagon, which plans to make the federal government’s military operation more “environmentally-friendly” by reducing its use of fossil fuels with a conversion to electric vehicles.

The Department of Defense (DOD) plans to purchase 1,500 models of the Volt, which has been burdened with lethargic sales and mounting losses since the automaker launched it in 2010. The Marine Corps Air Station in Miramar, California bought two of the “green” vehicles in July, and another 18 more will soon be shipped to Joint Base Andrews in Maryland, where Air Force One is lodged.

The Obama administration has been a prominent advocate for the Chevy Volt, as the President himself pledged this year to “buy one and drive it myself … five years from now when I’m not president anymore.” Moreover, the government has offered a $7,500 tax break to bolster GM’s sales on the electric vehicle. However, the federal government’s spendthrift strategies have produced meager results.

Citing data released by the consulting firm Munro & Associates, Reuters reported Monday that “nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds.” Reuters noted that each one of the Obama-hyped vehicles cost upwards of $89,000 to produce, with a sticker price of less than $40,000. Further, the news agency reported:

Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.

And while the loss per vehicle will shrink as more are built and sold, GM is still years away from making money on the Volt, which will soon face new competitors from Ford, Honda and others.

The vehicle’s steep sticker price, combined with logistical concerns about charging the vehicles, has severely strained GM’s initial sales projections. “Discounted leases as low as $199 a month helped propel Volt sales in August to 2,831, pushing year-to-date sales to 13,500, well below the 40,000 cars that GM originally had hoped to sell in 2012,” Reuters added.

The automaker contested the $89,000 estimate, calling it “grossly wrong, in part because the reporters allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program.”

However, president of the Michigan-based Munro & Associates, Sandy Munro, told FoxNews.com that the number should be relatively close, while she acknowledged that it was estimated by using industry standards, without any detailed inside information regarding the Volt’s production. GM has never publicized actual figures on production costs for the electric vehicle, partly because many of the Volt’s parts are shared with other GM vehicles, including its internal combustion engine. Here’s how Reuters figured its calculations:

The independent cost estimates obtained by Reuters factor in GM's initial investment in development of the Volt and its key components, as well as new tooling for battery, stamping, assembly and supplier plants — a price tag that totals "a little over" $1 billion, Parks said. Independent estimates put it at $1.2 billion, a figure that does not include sales, marketing and related corporate costs.

Spread out over the 21,500 Volts that GM has sold since the car's introduction in December 2010, the development and tooling costs average just under $56,000 per car. That figure will, of course, come down as more Volts are sold.

The actual cost to build the Volt is estimated to be an additional $20,000 to $32,000 per vehicle, according to Munro and the other industry consultants.

Responding to the news agency, GM asserted that “every investment in technology that GM makes is designed to have a payoff for our customers, to meet future regulatory requirements and add to the bottom line. The Volt is no different, even if it takes longer to become profitable.”

In the end, however, the real controversy stems from the fact that American taxpayers have been forced to pay billions of dollars to an automaker that is failing to turn a profit on a vehicle being promoted by politicians, including the President himself. The Chevy Volt, as well as the U.S. auto industry as a whole, has become a political whirlpool over the past few years, and despite already having sunk a mounting sum of taxpayer dollars into the Chevy Volt, the Pentagon is forcing Americans to pay more — in another political statement delivered under the worn-out maxim of “environmental responsibility.”



TOPICS: Crime/Corruption; Foreign Affairs; Government; News/Current Events
KEYWORDS: chevyvolt; gm; governmentmotors; obama; usmilitary
Government Motors and the Volt have cost taxpayers dearly and now our military under Obama will be paying twice for EVs as they would for comparable gas powered vehicles and will have to spend millions for charging stations.
1 posted on 09/12/2012 2:37:32 PM PDT by jazusamo
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To: jazusamo

I have been saying for months that I believe that a large percentage of Volt sales (such as they were) were by the government, and that they are probably sitting, rusting on some missile range in Nevada. Well, here we go.


2 posted on 09/12/2012 2:39:55 PM PDT by fhayek
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To: jazusamo

Just drop them as unguided weapons on our enemies and let them go broke trying to building charging stations.


3 posted on 09/12/2012 2:40:22 PM PDT by ken in texas (I was taught to respect my elders but it keeps getting harder to find any.)
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To: jazusamo
They should use them to test catapults.
4 posted on 09/12/2012 2:40:25 PM PDT by boomop1 (term limits will only save this country.)
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To: jazusamo

So, will GM charge US $89,000 each or will they give us a deal and charge us $40,000 which is $49,000 under invoice?


5 posted on 09/12/2012 2:40:35 PM PDT by Terry Mross
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To: jazusamo

They could fire them off the catapults on aircraft carriers, but I’m sure that submerging a Volt in navigable waterways breaks about 100 EPA regulations.


6 posted on 09/12/2012 2:40:53 PM PDT by Bryanw92 (Sic semper tyrannis)
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To: jazusamo

The taxpayer supports Obama Green if he wants to or not!


7 posted on 09/12/2012 2:41:24 PM PDT by AngelesCrestHighway
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To: jazusamo

it is the black beret all over again.

perhaps these chevy volts should come with a pink berret and easy to wave white flags.


8 posted on 09/12/2012 2:42:27 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: jazusamo

Perfect for our pro-homo general officers.


9 posted on 09/12/2012 2:42:59 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: jazusamo

Gutting our defense budget $800B but buying 1500 Dolts?

What is worse is Boehner isn’t opening his mouth.

Please forward to Rush and to Boehner.


10 posted on 09/12/2012 2:42:59 PM PDT by CincyRichieRich (Keep your head up and keep moving forward!)
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To: jazusamo

Maybe they come equipped with ten thousand dollar toilet seats.


11 posted on 09/12/2012 2:43:51 PM PDT by Stosh
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To: jazusamo
Mount a Ma Duce (50 Cal Machine Gun) on the roof and when it runs out of power use the 50’s recoil to make it to the next charging station. This can also double as a clandestine ground attack vehicle as it will make very little noise during movement to contact. //sarcasm off of course//
12 posted on 09/12/2012 2:44:06 PM PDT by mosaicwolf (Strength and Honor)
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To: jazusamo
1500 Volts?

And the Defense Dept. will be blamed for budget woe's....

They could by a couple of F22's for that.

13 posted on 09/12/2012 2:45:49 PM PDT by EGPWS (Trust in God, question everyone else)
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To: fhayek

This will be the “gay” vehicle for those DADT repeal recruits. They will come with a pink berret and a horn that makes a laughing sound.


14 posted on 09/12/2012 2:49:43 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: jazusamo

Which is about a week’s worth of production. So this waste of tax payers dollars keeps the plant running for an extra week.


15 posted on 09/12/2012 2:50:16 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: jazusamo

What has happened to our military? This is sick. Next thing they will do is eliminate lead and DU in our ammo so we don’t hurt the environment. Meanwhile we have lesbian generals and Muslims throughout the ranks.

Whatever happened to the mission of killing and breaking things?


16 posted on 09/12/2012 2:51:29 PM PDT by ConservativeInPA (The truth hurts)
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To: jazusamo
reporters allocated product development costs across the number of Volts sold instead of allocating across the lifetime volume of the program.

I think the lifetime volume of the program has already been reached. No fair counting government purchases to make it look good.

17 posted on 09/12/2012 2:52:19 PM PDT by Right Wing Assault (Dick Obama is more inexperienced now than he was before he was elected.)
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To: EGPWS

That’s what’s so pathetic about this. They’re slashing the Defense budget but buying these overpriced turkeys to bolster Obama’s “green thing” while pumping more taxpayer money to Government Motors and the UAW.


18 posted on 09/12/2012 2:52:58 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: ConservativeInPA

every new law, every order jug ears has done should be overturned in the first couple of weeks.
Investigations into the DOJ, Holder, release all of jug ears records, throw out the lawyers in the DOJ , see which pro homo and homo and cross dressers were promoted in the military and lets stop this utter madness.


19 posted on 09/12/2012 3:05:02 PM PDT by manc (Marriage =1 man + 1 woman,when they say marriage equality then they should support polygamy)
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To: CincyRichieRich

STFU.....Boehner has NOTHING to do with this....go back to DU, TROLL! Why the HELL would you bring up Boehner and NOT OBAMA????????? IDIOCY....WE are TRYING to WIN a WAR HERE....go away, troll.


20 posted on 09/12/2012 3:31:32 PM PDT by Ann Archy ( ABORTION...the HUMAN Sacrifice to the god of Convenience.)
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To: jazusamo

Congress, time to control the purse strings.


21 posted on 09/12/2012 3:37:25 PM PDT by SoFloFreeper
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To: Ann Archy
Such a needlessly violent tirade.

The Bronze Boehner should be all over this.

I wonder what your real problem is.

22 posted on 09/12/2012 3:39:54 PM PDT by Aevery_Freeman (All Y'all White Peoples is racist!)
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To: jazusamo
Taxpayers Pentagon Plans to Buy 1,500 Chevy Volts
23 posted on 09/12/2012 3:41:30 PM PDT by Signalman
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To: ken in texas
.

>>>>> "Just drop them as unguided weapons on our enemies and let them go broke trying to building charging stations." <<<<

NO !! Drop them on oil stowage areas or LNG refineries in Libya, Iran, etc. Then, when they try to start them to get them out of the way..... FLASH - FLAMES ....cars catch on fire and ignite petroleum fumes....then BOOM. No fuel farm left...just black smoke and 500 foot flames.

24 posted on 09/12/2012 3:42:32 PM PDT by jmax (Full mag inserted, round in chamber, hammer is back...safety is OFF.)
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To: jazusamo
and America takes another one in the........

25 posted on 09/12/2012 3:45:52 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Chode; jazusamo; All

26 posted on 09/12/2012 3:50:23 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: jazusamo
Pentagon Plans Ordered by WH to Buy 1,500 Chevy Volts

Fixed it.

27 posted on 09/12/2012 3:51:49 PM PDT by bgill
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To: musicman
thank you...
28 posted on 09/12/2012 3:59:23 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Aevery_Freeman

Well, treoll, I;ll tell ya.....when the OTHER SIDE is DESTROYING AMERICA nd YOU decide to go after BOEHNER, I say “something smells” and it’;s IDIOCY to go after OUR side in a WAR!!! GROW THE HELL UP!!! THIS IS AMERICA in it’s last gasp if you guys go after Republicans that can actually help us. Let’s see you say anthing bad about the Democrats..........


29 posted on 09/12/2012 4:01:39 PM PDT by Ann Archy ( ABORTION...the HUMAN Sacrifice to the god of Convenience.)
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To: jazusamo

send those junk piles to Libya... maybe they will catch on fire and kill the occupants


30 posted on 09/12/2012 4:01:43 PM PDT by Nifster
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To: jmax

Not bad at all... I had forgotten their propensity to catch fire.


31 posted on 09/12/2012 4:02:03 PM PDT by ken in texas (I was taught to respect my elders but it keeps getting harder to find any.)
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To: musicman

Good one, M!


32 posted on 09/12/2012 4:07:38 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: Ann Archy
DemonRats are either worthless moochers or evil looters. I favor abortion because it kills liberals while protecting conservatives.

Men of the mind are conservatives, usually libertarians, because they do not fear facing life on their own.

Boehner is not taking advantage of gift after gift (think Executive Privilege of Fast-and-Furious) of O-dung-a's malfeasance and deserves to be called on it.

But that's just, and I quote, one treoll's opinion.

Have you tried decaf?

33 posted on 09/12/2012 4:11:46 PM PDT by Aevery_Freeman (All Y'all White Peoples is racist!)
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To: Aevery_Freeman

You favor ABORTION....spit! Don;t ever comtact me again.


34 posted on 09/12/2012 4:13:41 PM PDT by Ann Archy ( ABORTION...the HUMAN Sacrifice to the god of Convenience.)
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To: jazusamo
I get it now ...huge cuts in defense so the Pentagon can by 1500 lemons, and make GM's bottom line look good.

This needs to be made into an ad.

35 posted on 09/12/2012 4:20:14 PM PDT by Irish Eyes
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To: jazusamo

Gub’mint Motors, indeed! Built w/ taxpayer money and sold to gub’mint agencies paying w/ more taxpayer money! We get screwed twice and I fully expect there to be a third time paying for some taxpayer funded battery disposal and/or recycling program in the near future.


36 posted on 09/12/2012 4:26:21 PM PDT by citizen (America is at an awkward stage...Too late to work within the system, too early to shoot the bastards)
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To: jazusamo

Sounds like the ideal transportation for getting from office to office in the Pentagon. It’s pretty big.


37 posted on 09/12/2012 4:29:37 PM PDT by UCANSEE2 ( If you think I'm crazy, just wait until you talk to my invisible friend.)
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To: Ann Archy

STFU.....Boehner has NOTHING to do with this....go back to DU, TROLL! Why the HELL would you bring up Boehner and NOT OBAMA????????? IDIOCY....WE are TRYING to WIN a WAR HERE....go away, troll.


Angry dork - 0bama was implied. Boehner has plenty to do with it as all he says is a deal likely won’t be made before the end of the year - does he come out and blame 0bama and Reid? No, he’s not smart enough. Grow up.


38 posted on 09/12/2012 4:32:29 PM PDT by CincyRichieRich (Keep your head up and keep moving forward!)
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To: jazusamo
now our military under Obama will be paying twice for EVs as they would for comparable gas powered vehicles and will have to spend millions for charging stations.

Reagan broke the 'Russian' bank by forcing them to try to outspend us on weaponry.

Obama is trying to break the US Bank by forcing us to spend all our money on Electric Cars.

39 posted on 09/12/2012 4:32:38 PM PDT by UCANSEE2 ( If you think I'm crazy, just wait until you talk to my invisible friend.)
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To: Ann Archy

STFU.....Boehner has NOTHING to do with this....go back to DU, TROLL! Why the HELL would you bring up Boehner and NOT OBAMA????????? IDIOCY....WE are TRYING to WIN a WAR HERE....go away, troll.


Angry dork - 0bama was implied. Boehner has plenty to do with it as all he says is a deal likely won’t be made before the end of the year - does he come out and blame 0bama and Reid? No, he’s not smart enough. Grow up.


40 posted on 09/12/2012 4:32:39 PM PDT by CincyRichieRich (Keep your head up and keep moving forward!)
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To: UCANSEE2
Obama is trying to break the US Bank by forcing us to spend all our money on Electric Cars.

I don't believe that's far off the mark.

I don't know where the $7500 tax credit per vehicle will go for these vehicles being purchased by the military because no on has said.

When dealers sell Volts to cities, counties and states that $7500 tax credit goes to the dealer and in most cases the federal govt is giving grants to those cities, counties and states to help purchase those Volts.

Obama & thugs are playing Santa Claus with taxpayer dollars.

41 posted on 09/12/2012 4:43:43 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

Well I wonder how that’s going to work since they are trying to reduce consumption especially since San Onfre is down.


42 posted on 09/12/2012 4:46:24 PM PDT by yankee turned redneck
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To: jazusamo

Better hope Romney doesn’t say anything about this. It would be so unpatriotic if he did.


43 posted on 09/12/2012 4:55:09 PM PDT by madprof98
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To: madprof98

Maybe he would get a call from General Martini(one too many) Dempsey.


44 posted on 09/12/2012 5:03:17 PM PDT by GOYAKLA (Recall/ Impeachment Day, November 6, 2012. FUBO, same for RINOs)
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To: jazusamo

There is no way that this could be crony capitolism.


45 posted on 09/12/2012 5:06:44 PM PDT by fella ("As it was before Noah, so shall it be again")
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