Shallow Analysis Deems DOE Electric Vehicle Loans a Success

Elon MuskA popular automotive Web site’s attempt to set the record straight on the degree of success and failure of the Department of Energy’s Advanced Technology Vehicles Manufacturing loan program was well-intentioned, but missed the mark on several points and overall gave the initiative far too much credit.

Jalopnik.com contributor Patrick George was pointed in the right direction when he characterized DOE’s boastful Loan Program Office as “rosy,” but more accurate descriptors would be “excessive” and “unrealistic.” It’s clear his analysis was one of an automotive enthusiast and reviewer, rather than someone who regularly watchdogs government with a skeptic’s eye and knows how bureaucrats fudge and exaggerate numbers to claim credit for their politician bosses. As NLPC has reported often, DOE – before a taxpayer-backed bank check was ever issued to an electric automaker – has made absolutely unbelievable claims about jobs, fuel savings and carbon dioxide emission reductions that …

Inspector General Confirms Fun & Games at LG Chem

LGChem logoThe employees of battery maker LG Chem still haven’t found anything to do worthy of their pay since they were caught playing games and watching videos four months ago, and now the Inspector General for the U.S. Department of Energy has embarrassed the company into returning some – but not much – of the $142 million (out of a $151 million grant) in taxpayer money they took.

Gregory Friedman released his report – which was based on an inquiry spurred by the original media stories in the fall about the mostly idle workers in Holland, Mich. – last week. Turns out the reports about workers on-the-clock playing Texas Hold ‘Em and video games, doing Sudoku and crossword puzzles, and volunteering at nonprofits like Habitat for Humanity, were not exaggerations.

In the words of the inspector, “We confirmed the allegations.” The work that was supposed to be done under DOE’s stimulus

CBO Says Electric Vehicle Subsidies to Cost $7.5 Billion With Little Benefit

Akerson and VoltI recently came across a report written by the Congressional Budget Office (CBO) which estimated the cost to taxpayers for “federal policies to promote (aka subsidize) the manufacture and purchase of electric vehicles (EVs).” The piece also predicts the short-term benefits of the subsidies and includes the effects of rising federal requirements for fuel economy (known as CAFE) standards. The outlook is that federal subsidies will cost taxpayers $7.5 billion over the next few years for little or no benefit (even when including the impact of CAFE) to total gas consumption or emissions.

The CBO is a non-partisan federal agency that is relied upon by Congress to provide unbiased economic data. Unfortunately, Congress does not seem to listen to what the statistics are telling them. In the case of green subsidies, it seems that no logical data on how little the country benefits from the politically-popular handouts and how many …

Nissan Admits Arrogance in Sales of Taxpayer-Subsidized Leaf

Ghosn photoA top Nissan official has said the company was “arrogant” in its marketing and sales approach for the all-electric Leaf, which received a $1.4 billion stimulus loan guarantee from President Obama’s Department of Energy.

Not that the company is going to return taxpayers their money, since the premise upon which Nissan received the loan were ridiculously high production estimates. Too much in expenses would have to be eaten otherwise.

“We were a little bit arrogant as a manufacturer when we went to the 50-state rollout,” said Al Castignetti, Nissan’s vice president for sales, to Automotive News in late November. “We had assumed that there were people just waiting for the vehicle who would raise their hand and say, ‘Give me a Leaf, give me a Leaf, give me a Leaf.’”

Considering there weren’t many people “raising their hands” in the few states where Nissan did roll out …