Last week the Detroit News reported that NHTSA claimed that the White House had nothing to do with the agency's delay in disclosing its Chevy Volt fires to the public. Supposedly, NHTSA contacted the White House three months after the Volt fires and waited another two months before releasing the information to the public. Whether or not the Obama Administration is being honest about its involvement in NHTSA's Chevy Volt investigation, it is clear that we are in an unprecedented situation with the President of the US having his reelection chances largely tied to the success of General Motors, which was once an icon of American industry but now epitomizes taxpayer bailouts, crony capitalism and political theater.
It seems that General Motors is sticking to its guns as they continue to blame lack of supply for low sales of the Chevy Volt. A story by the Detroit Free Press quotes GM Vice Chairman, Steve Girsky, as saying that market demand for the Volt will not be known until around June as "...there are still dealer orders that are getting filled and there are customers that are still getting out there."
Submitted by NLPC Staff on Mon, 01/09/2012 - 14:25
NLPC Associate Fellow Mark Modica says it is time to end tax credits and subsidies for electric vehicles. He is interviewed by Neil Cavuto on the Fox Business Network on Friday, January 6. Here's a transcript:
General Motors reported Chevy Volt sales of 1,529 for the month of December. The still unimpressive number is an improvement over previous months, but the gains were mostly driven by fleet sales. According to GM, 992 of the Volts sold were to retail customers while 537 went to fleet purchasers.
GM says the fleet sales were to corporate buyers and not to rental companies. The number of Volts sold to townships receiving federal grants remains unknown. The corporate sales claim makes sense as crony company, General Electric, starts to make good on its promise to buy thousands of Volts. Of course, GE benefits by selling charging stations for the vehicles.
General Motors' much-hyped Chevy Volt has yet another distinction to add to its long list of commendations. We had all heard repeatedly about Motor Trends' Car of the Year award, Consumer Reports' recommendation and Jay Leno's love affair with the car, but the Volt now gets a less publicized, more deserved distinction from Yahoo Finance's 24/7 Wall Street site. The Volt has made the list of "The Worst Product Flops of 2011" and apologists for the vehicle are sure to, once again, attack the credibility of those issuing the opinion.
Let's look past the recent Chevy Volt fires. The value of a vehicle will be determined by the consumer. It does not matter if Jay Leno and other rich purchasers say they love their Volts. The real questions are, should taxpayers be paying the wealthy to purchase cars like the Volt, and what, exactly, are the taxpayers getting for their money?
Submitted by NLPC Staff on Tue, 12/20/2011 - 18:19
Last night on Neil Cavuto's show on Fox News Channel, NLPC Associate Fellow Mark Modica discussed disappointing sales of the Chevy Volt, and GM's apparent goosing of sales figures through fleet sales. Here's a transcript:
Sales for the Chevy Volt have been stagnant and it has become apparent that lack of supply is not the reason. GM CEO Dan Akerson is responsible for tying the success of GM into the success of the Volt by having made lofty claims that the vehicle was, in fact, the future of the company while investing a major portion of marketing dollars to help support the perception. Deception was evident as statements were made that the vehicle was "virtually" sold out and supply couldn't keep up with demand, while evidence surfaced that this was not the case. GM cancelled plans to run a second shift for the vehicle even as it continued the ruse and floated rumors that there were huge waiting lists of purchasers for the vehicle.
Bloomberg reported last week that General Motors will be paying $12 million in additional bonuses to its UAW workers for meeting "quality targets." It's nice to see the holiday spirit of giving at GM. Unfortunately; US taxpayers are not faring as well as Government Motors' politically favored union members.
The Obama Administration still refuses to exit its stake in GM with Treasury serving as Money Manager for the American taxpayers. Geithner and friends continue to gamble on a market-timing strategy to "maximize" taxpayers return on its GM bailout (sorry, "investment.") So, how are they doing?