Government Orders and Subsidies Don't Make Chevy Volt a Success

It's all part of Obama's reelection script. He saved General Motors from disaster. Front and center in this fairy tale is the Chevy Volt, the car that was supposed to save General Motors.

Now remember, when GM first announced the Volt, it was supposed to get 230 miles per gallon. In reality, it gets about 37, which means it's considerably cheaper to own and operate a Honda. Then GM was caught lying about the sales.


GM spokeswoman, Michelle Bunker, was quoted as saying that the Volt was "virtually sold out" and only a "few" were available nationwide.

OK, but according to GM sales figures only 125 were sold in July. Consider that in February, the shortest month of the year, 281 volt sales took place in the United States. Sales have fallen over 50% and the current climate of high fuel costs should ignite sales of a car like the Volt one would think.

Now remember, there are huge tax credits established by the Obama administration when you purchase an overpriced Volt.

Then there was the huge federal government order for Chevy Volts. Bloomberg reports:


It looks like General Motors will be throwing everything in but the kitchen sink to help fluff its second quarter earnings numbers. Taxpayers continue to help with the cause as President Obama campaigns on the “success” of GM following the manipulated bankruptcy process that cost taxpayers $50 billion and another $45 billion of tax credits gifted to GM to help protect powerful UAW interests. We now learn that government purchases of GM vehicles rose a whopping 79% in June.


The discovery of the pick-up in government fleet purchases at the taxpayers’ expense comes just weeks before GM announces its second quarter earnings. Overall fleet sales (which are typically less profitable than retail sales) at Government Motors rose a full 36% for the month, helping to drive decent sales improvements year over year.


Now we are learning GM is losing lots of money on its ugly, overpriced, underachieving Chevy Volt:


According to multiple GM executives there is little or no profit being made on each Volt built at a present cost of around $40,000. Furthermore, the $700 million of development that went into the car has to be recouped.


Here's the truth you aren't going to hear from Obama about Chevrolet. Taxpayers are footing the bill for GM's huge development losses on the Volt.


(A)dd $240 million in Energy Department grants doled out to G.M. last summer, $150 million in federal money to the Volt’s Korean battery supplier, up to $1.5 billion in tax breaks for purchasers and other consumer incentives, and some significant portion of the $14 billion loan G.M. got in 2008 for “retooling” its plants, and you’ve got some idea of how much taxpayer cash is built into every Volt.


Remember this when Obama campaigns he saved Detroit.