Will GM’s Akerson Come Clean on the Chevy Volt?

Akerson and VoltGeneral Motors’ CEO, Dan Akerson, is scheduled to testify at congressional hearings on the NHTSA delay in reporting Chevy Volt fires. GM and the government agency waited about five months to report an incident involving a Volt which erupted in flames weeks after a crash-test. Up to this point, Akerson has not exactly been honest about the Volt; can we now expect him to come clean?

A culture of deceit has been evident at GM since the Obama Administration orchestrated a manipulated bankruptcy process that favored the politically powerful UAW over other classes. It was during the time of the bankruptcy process that the Chevy Volt hype gathered steam as the public was presented with a green wonder-car that served as partial justification for using $50 billion of taxpayer money to bailout GM. While Akerson’s part in the story came later, the stage was set for the Volt to become … Read More ➡ “Will GM’s Akerson Come Clean on the Chevy Volt?”

As Goes GM, So Goes Obama Reelection

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.

President Obama has been campaigning on a platform that touts the Administrations’ intrusion into the American auto industry as a bold success that saved millions of jobs. GM takes center stage as the … Read More ➡ “As Goes GM, So Goes Obama Reelection”

Energy Dept. Makes More Bad Bets with Taxpayer Money

Chu photoAs the U.S. government Venture Capitalist-in-Chief (and President) Barack Obama and his Department of Energy investment guru (and Energy Secretary) Steven Chu pour other peoples’ money into their favorite “clean” technology schemes, private backers appear to be following them off the cliff, “as publicly traded battery makers watched their stocks tank and their businesses stumble,” according to a Dow Jones report late last month.

According to a Dow Jones-owned industry tracker called VentureSource, private investors put $372.7 million into 14 battery deals over the first three quarters of 2011. Whether they would have transferred so much cash into the otherwise shaky enterprises, without the government leading the way, is doubtful at best. But since the Obama administration wants to create “Green jobs” with a new energy economy, the fools have rushed in, ignoring the fact that government manipulation of industry only creates bubbles that eventually burst.

“Building a whole new … Read More ➡ “Energy Dept. Makes More Bad Bets with Taxpayer Money”

Democratic National Committee Taps Crony Corporations

Obama InvescoAs Democrats struggle to raise funds to coronate President Obama as nominee in Charlotte, N.C. this September, the role of two crony corporations increases daily.

Bloomberg reported yesterday that the president’s re-election organization will consider moving his acceptance speech at the Democrat National Convention to Bank of America Stadium.

Three unidentified Democrats “involved in the fundraising” told the news service the goal would be to sell more skyboxes to wealthy donors, apparently because fewer are available at Time Warner Cable Arena where the convention is presently scheduled.

“The almost 74,000-seat home of the Carolina Panthers professional football team would also have room for the convention to sell more floor passes close to the stage,” Bloomberg reported. “Planners for the event are struggling to meet a $36.6 million fundraising goal, according to the Democrats, who spoke on condition of anonymity because they weren’t authorized to discuss the matter.”

Back in … Read More ➡ “Democratic National Committee Taps Crony Corporations”

GM Wrestles With Chevy Volt ‘Political Controversy’

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.”

GM’s president of North American operations, Mark Reuss, addressed criticism of the Volt by adding, “The worst thing we could do would be to back off of that technology in the wake of political controversy.” Funny how GM was sensitive to having its Chevy Volt hype considered politically driven, but now that demand for the vehicle is not living up to the hype anyone who dares criticize the taxpayer subsidization of the Volt must have a political … Read More ➡ “GM Wrestles With Chevy Volt ‘Political Controversy’”

Russian Oligarch Tries to Cash In on Obama’s Crony Capitalism

Alexi MordashThe Department of Energy announced on Friday it would not complete a low-interest, $730 million loan to Severstal North America, after it had given the company a conditional commitment in July under its Advanced Technology Vehicles Manufacturing program.

DOE gave no reason for its disapproval of the loan, but it had come under scrutiny about its judgment after the collapse of solar company Solyndra, which was lent $535 million in taxpayer dollars. House Oversight and Government Reform Committee Chairman Darrell Issa called upon Energy Secretary Stephen Chu to revisit the Severstal project – which would modernize its facility in Dearborn, Mich. to produce so-called advanced high-strength steel (AHSS) – because the company “had ample means to carry out the project” and had “apparently no need for federal financing,” among other reasons. Severstal N.A. is a wholly owned subsidiary of OAO Severstal, owned by Russian tycoon Alexei Mordashov (in photo), … Read More ➡ “Russian Oligarch Tries to Cash In on Obama’s Crony Capitalism”

GM Recalls Chevy Volt

Last night, NLPC Associate Fellow Paul Chesser discussed the Chevy Volt recall with Neil Cavuto on the Fox Business Network. Here’s a transcript:

Neil Cavuto:  …Forget Volt sales and that they are far from catching fire. Apparently the cars really are in danger of catching fire. GM is recalling nearly 8,000 Chevy Volts for what they’re calling enhancements. I actually hate it when people do that but that’s what they’re calling them, enhancements, aimed at preventing the battery from bursting into flames. The National Legal and Policy Center‘s Paul Chesser says that this recall should be a wake-up call for the government to just stop this nonsense. Just get out of this whole subsidizing, tax crediting, everything having to do with this stuff, right?

Paul Chesser:  Neil, you’re not supposed to call it a recall. GM’s not calling it a recall. The government’s not calling it a … Read More ➡ “GM Recalls Chevy Volt”

Chevy Volt Fleet Sales Rise, Government GM Purchases Increase

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.

Another interesting statistic on Volt sales can be derived from the inventory figures and number of Chevy dealerships with available Volts. GM now claims that 2,600 dealerships across the nation have Volts for sale. Given the 992 figure for Volts … Read More ➡ “Chevy Volt Fleet Sales Rise, Government GM Purchases Increase”

Taxpayers Take Hit as Solar Industry Implodes

First Solar Logo

In a year where Solyndra became the face of the solar industry’s chronic failures, even the holiday season could not prevent one last flurry of layoffs in 2011.

The Mountain Enterprise (based in Frazier Park, Calif.) reported over the weekend that First Solar, Inc. – which the media sometimes identifies as the largest solar company in the world – laid off half its employees on Friday at its Antelope Valley Solar Ranch One project. The facility has been the subject of controversy in the local community over the effects it will have on land use, wildlife, and water usage.

In a September 30 press release that announced the sale of the 230-megawatt photovoltaic “farm” to Exelon (First Solar will still build, manage and operate the project), up to 400 construction jobs and as many as 15 operations positions were supposed to result. The Department of Energy, which provided a $646 … Read More ➡ “Taxpayers Take Hit as Solar Industry Implodes”

Chevy Volt Gets “Worst Product” Award

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.

The Obama Administrations’ favorite car has had a rough time of late with sales goals not being met, exploding cars at NHTSA and media exposure of the high cost to taxpayers regarding Chevy Volt subsidies and federal funding of township purchases. Considering all the money spent by GM to hype the vehicle, the Worst Flop award is well-deserved. … Read More ➡ “Chevy Volt Gets “Worst Product” Award”