General Motors is Alive…Car Company loses $49,000 For Every Volt Produced
posted at 7:22 am on September 11, 2012 by Matt Vespa
Even a $7,500 government bribe couldn’t curb this catastrophic financial loss. Becket Adams at The Blaze wrote on September 10 that “General Motors posts a $49,000 loss for each new Volt plug-in hybrid it produces, Reuters reports. You know what this means, right? It means that for each new Chevy Volt, the taxpayer bailed out company loses what the average American makes in a year. And on top of that, rock bottom lease offers made during the summer may have inflated the above number. According to the report, some motorists paid only $5K to drive around in a new $80K Volt for two years.”
Oh yes, GM is alive!
Let’s see what’s wrong with the car. According to Lloyd Billingsley at MyGovCost.org, the car:
can travel only 38 miles on battery before it needs a plug-in. The sales slump has prompted General Motors to halt Volt production for a month, the second time this has happened. Problems with Volt go beyond its limited range. The electric motor does not pollute, it is true, but the electrical plant that charges the battery does generate emissions. That reality does not show up in federal incentives. Neither does the reality that the electrical grid was not constructed for the charging demands of electric cars. These tend to be charged at night, when alternative sources such as solar and wind are not effective. Batteries do not last forever and disposal can be a problem. Likewise, biofuels enjoy federal incentives but also have an environmental downside.
Furthermore, “Government investment needs to spur technological development, not simply entrench and institutionalize first-generation efforts to ‘green’ the car culture, explains Dr. Amy Kaleita.” Billingsley concludes that “spurring technological development, and making better use of our own energy reserves, would be a better plan than $7.5 billion in wasted subsidies for a policy and product Americans aren’t buying.”