“If the turkeys can get that passed it’ll save GM from having to lower the price of their over priced Volt.”
GM has already announced a reduction - the base 2012 model will be $39k, with the possibility of the $7,500 subsidy reducing it more.
I strongly suspect that GM will lose money on every Volt sold, and make it up by putting a premium on trucks and SUVs. Most lines sell at a rate of 30 times that of the Volt, so they can spread out the Volt losses over quite a few trucks.
I see this as a signal that the era of personal truck ownership is about over. Ridiculous economy standards will force automakers to reduce truck sales...and they will accomplish this by adding a premium to truck prices, which will in turn subsidize their ‘green’ offerings...which they have to sell a ton of, with their phoney baloney mileage stickers, to meet fleet standards.
The $7,500 tax credit as it stands now will last until 200,000 units have been sold which includes Prius’ and Leaf's.
They may try to make it up in sales of other vehicles but from reports of the amount of loss that was reported around the first of the year per unit they'll have a rough time.
If they can't boost the sales numbers of Volts by a huge amount next year I believe it will be eliminated until they come up with better technology. I also believe the sales will not increase next year the amount needed to save it, it's just too expensive to compete with the other electrics right now.