January's dismal numbers for Chevy Volt sales may give a clue as to how successful (or not) President Obama will be in reaching his goal of having a million electric vehicles (EVs) on American roads within the next few years, a goal that is increasingly becoming unlikely. It also gives us a glimpse into a bizarre strategy General Motors has had by focusing so strongly on plug-in cars while they lose market share elsewhere. The numbers are in, and GM can proudly say that they are the market leader in an insignificant field with a paltry 1,140 Volts sold in January. The best selling passenger car on the road, the Toyota Camry, sold 31,897 during the month, giving an indication of how illogical GM's misguided focus has been.
A watchdog for the government's bailout program, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), has hit the US Treasury Department with a hard combo of critique regarding some of the Administration's actions since pumping billions of taxpayer dollars into bailed-out companies like General Motors and Ally Financial (formerly known as GMAC). SIGTARP issued a report lambasting Treasury for allowing excessive pay for executives at GM, Ally Financial and AIG and followed that with statements that scrutinized Treasury's continued refusal to exit its stake in Ally Financial, which is currently 74% owned by the government.
The authorization was the final major hurdle needed to complete the transaction. A123 had been granted $249 million to refurbish two plants in Michigan for battery production, another $30 million as a subcontractor for another stimulus-funded wind energy storage project, and various other grants and contracts by state and federal governments. But A123’s executives, while making sure their own bank accounts were well-taken care of, ran the company into the ground and now Wanxiang will reap whatever technology value is left, for cheap.
Now that he’s been forced out as chairman and CEO of Duke Energy, James Rogers is apparently looking for something else to do, and may now be more receptive to the idea of becoming President Obama’s next Secretary of Energy.
The new speculation, primarily from the Charlotte Business Journal, which is based in Duke’s home city, arose following an interview that Rogers did with Bloomberg News while at the World Economic Forum in Davos, Switzerland. Whereas Rogers used to routinely dismiss suggestions that he might be up for a cabinet post, when asked this time by Bloomberg reporter Tom Keene what he would bring to the job if the president asked him to serve, he was unhesitant.
Seemingly endless government subsidies and the impetus to “go green” have made a mockery yet again of those who direct their business toward pleasing politicians and activist groups rather than delivering quality products built upon a proven history of performance.
Such is the case with Boeing’s troubled – and now grounded – Dreamliner.
I 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.
General Motors finished 2012 with a 17.9% market share in the US and is expected to repeat the performance in 2013 according to a Bloomberg report. The number is at the lowest point it has been since 1924. So what is behind the dismal numbers at GM that sees the company performing at 88 year lows?
The final tally is in for 2012 Chevy Volt sales. The good news (which is what most headlines will trumpet) is that sales for General Motors' flagship green vehicle tripled from 2011's paltry 7,671 to a slightly less paltry 23,461 in 2012. The bad news is that the number is almost half of GM's sales goal of 45,000 in 2012 for the Volt. The further bad news is that the Volt has so little demand in most regions that some dealerships are refusing to pay for required tools to repair the vehicles and are choosing to cease selling the vehicles instead.
The past year was a dismal one for the passé idea that government would use taxpayer dollars responsibly, and that was nowhere more evident than with President Obama’s initiatives to promote “clean” energy technology companies and projects with so-called “stimulus” funds and other public money. NLPC reported extensively on some of the most egregious examples.