Mark Modica's blog

Awards Won’t Drive Sales for Recalled Chevy Silverado

Silvardo awardGeneral Motors seems to be really good at winning awards for its vehicles. The Chevy Silverado just took home the North American Truck of the Year Award at the Detroit Auto Show. The truck also was just embarrassingly recalled due to a potential fire hazard. Unfortunately for GM, the bad news outweighs the good as awards do not always result in increased sales. Just look at the award-winning Chevy Volt as an example.

Dismal Chevy Spark EV Sales Make the Volt Look Good

Barra and VoltThe final tallies for 2013 sales are in for the Chevy Volt and its little sister, the Chevy Spark EV. The results are ugly.

While the Volt relies on both a gas engine and electric power, the Spark is actually an electric-only vehicle, assumedly designed to compete with the all-electric Nissan Leaf which had sales of 22,610 for the year. The Spark EV did not compete well, with sales for 2013 coming in at only 589 for the seven months in which it was offered. Chevy Volt sales for the year also disappointed, coming in at 23,094 and down from 2012 sales. The Volt's sales drop came during a year when overall US car sales rose about 8%.

Chevy Volt Electric Range Drops to 20 Miles in Cold

Volt in snowA recent study by fleetcarma.com unveils yet another drawback of General Motors' much-hyped Chevy Volt. It appears that the environmentally-conscientious, affluent owners of the vehicles who drive in cold weather will get about half of the electric range, on average, of those who drive in warmer climates.

Obamacare Pork to UAW Rolled Out Without a Glitch

Obama UAWWhile the Obama Administration is still pumping resources and taxpayer money into the implementation of Obamacare, the initial disbursement of pork included in the bill was successfully doled out almost a full two years ago. And the main recipient of taxpayer largess was, once again, the UAW.

The Obamacare pork came in the form of a program called the Early Retiree Reinsurance Program or ERRP. $5 billion of taxpayer money was allocated to help pay for healthcare costs to retirees between the age of 55 and 65. Number one on the union-dominated list of recipients was the UAW, which received $387.2 million for its VEBA fund, which was set up to pay UAW retiree health care costs. This amount was still not good enough for the UAW as they penned a letter to Congress in February of 2012 requesting an increase in ERRP funding to $10 billion.

GM Spends $1.3 Billion to “Create or Retain” 1,000 Jobs

Just days after the US government announced their exit from General Motors, the company announced a move that sounds like it could have come directly out of the Obama Administration playbook. GM is boasting about "creating or retaining" roughly a thousand jobs at the cost of approximately $1.3 million per job in a move that could only be viewed as a positive from a political point of view.

Cadillac ELR: Mary Barra’s First Embarrassment?

Mary BarraGeneral Motors has announced that Mary Barra will be replacing Dan Akerson as CEO as of mid-January. Ms. Barra was previously the head of global product development. As such, she already has to take partial responsibility for the over-hyped and low-selling Chevy Volt along with the upcoming Cadillac version of the car. With Consumer Reports now stating that the new Cadillac ELR (a glorified Chevy Volt) gave them "sticker shock," will the ELR be the first major embarrassment for Ms. Barra?

GM's Balance Sheet Not as Healthy as it Looks

GM UAW logosOne of the major architects of the General Motors bankruptcy process, Harry Wilson, recently gave a very optimistic outlook for GM future share price. Mr. Wilson was a member of President Obama's Auto Task Force, and was an instrumental player in seeing that UAW interests were put ahead of other creditors, like old GM bondholders.

Automotive News now reports that Mr. Wilson feels that GM may be a target for activists because of their "huge" cash hoard. According to the piece:

Taxpayers Tally Losses as Treasury Exits GM Stake

money down the drainIt appears the time has finally come for the Obama Administration to end taxpayers' forced investment in General Motors. Reports continue to roll in that Treasury is expected to sell its remaining stake by year-end. Of course, the news will be trumpeted as a great success by those responsible for the heist that cost taxpayers (along with creditors and shareholders of old GM) billions of dollars.

Taxpayers Pay $176 per Gallon of Gas “Saved” by Chevy Volt

Volt and AkersonI have to hand it to General Motors and those Chevy Volt supporters who continue to come up with creative ways to espouse the virtues of the slow selling and heavily subsidized vehicle. They just won't give up. The latest figures being presented in political fashion utilize large numbers that, on the surface, appear impressive. When analyzed, the figures give more insight into just how much taxpayer money is being wasted on green subsidies, particularly on electric vehicles (EVs). Sound the trumpets! According to Green Car Reports, the Chevy Volt has saved 17 million gallons of gas to date.

Tesla to Target Rich, Environmentally Conscientious Rednecks?

Obama and MuskTesla CEO, Elon Musk, seems to have reached cult status with green ideologues, as well as with many in the media. Musk's name often goes hand in hand with descriptive monikers like "visionary" and "genius." Of course, what Musk is really a genius at is getting politicians to fund his private businesses ventures with taxpayer money so they don't have to make a profit.

It might be time to step back and ponder just how genius Musk's latest idea is; which is for Tesla to compete with Ford's best selling F-series trucks by offering up an electric pickup truck.

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