Plug-Ins Account For Less Than Half of 1% of Auto Sales This Year

(CNSNews.com) –  After the federal government spent billions of dollars on federal tax credits and subsidies to promote all-electric and plug-in hybrid vehicles, they accounted for less than half of one percent of the 11.7 million light vehicles purchased in the U.S. during the last nine months.

In his 2011 “State of the Union” address, President Obama predicted that the U.S. would “become the first country to have a million electric vehicles on the road by 2015,” and backed up his prediction with $2.4 billion in federal grants to companies that produce lithium-ion batteries to power them.

But with 14 months to go, sales of the two top-selling plug-in cars are running far behind the president’s expectations. And despite receiving $99.8 million in stimulus funds, electric charging station manufacturer Ecotality filed for bankruptcy last month.

In April, the Congressional Research Service reported that “there is a gap between the Administration’s goal of having one million electric vehicles on the road by 2015 and consumer demand for such vehicles.” (See CRS.pdf)

Auto sales figures during the first nine months of 2013 confirm CRS’ conclusion.

According to the Department of Energy’s (DOE) “February 2011 Status Report,” General Motors was supposed to produce and sell 120,000 Chevrolet Volts in 2013 to keep pace with the president’s goal.

Via: CNS News

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General Motors 2: The Strengthening of the Strength is Strong & Stuff

Regular Red State readers know how much fun I’ve had covering the auto industry in recent years. From Obama’s push for newer, tougher CAFE standards on a struggling industry to GM’s crony CEO Dan Akerson. From the Chevy Volt’s fits and starts to GM blowing tax dollars onbonuses, marketing schemes, and ideologically-driven “green” projects.  I even had the honor of  being attacked by Attack Waaaaaaaaaatch probably because I wrote about GM’s special tax gift, as well as the fact that I’ve been caught parodying GM ads and clips.  To put it mildly, it’s an issue I’ve followed closely.

It would all be funnier if none of it was true.

But maybe I’m wrong. Maybe “Government Motors” is over. Maybe, once Treasury sells off its remaining shares, GM will magically become a pioneer of free market industry, worthy of its storied legacy. Maybe, just maybe, GM will begin to appeal to anti-bailout conservatives & libertarians again one day. Take, for example, GM’s new Chevy Silverado commercial, “Strong”:

Doesn’t it make you feel warm? “He,” whoever he is, shows up to work on time! And he’s monogamous! He has a barn, and he works on a farm and stuff! You can totally trust him – he’s steady!  Like a Chevy truck, obviously. Nashville artist Will Hoge, a hip, edgy, self-styled musical pundit, recorded the music for the ad.

‘Murica, y’all.

GM knows conservatives are a huge target market. That’s why they sponsored a “Free Enterprise tour” with the U.S. Chamber of Commerce this summer (which was rightly mocked by the National Legal and Policy Center), and that’s why they made this ad. I’m curious what readers think: are you more or less likely to buy a GM truck because of the GM bailout?

Via: Red State

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Chevy Volt Battery Plant Struggling Despite $151M From Obama Admin

Another in a long list of Obama-touted and tax-supported "green energy" companies is on the verge of going out of business, this time in Michigan.

Two years ago, President Obama visited the LG Chem battery plant in Holland, Michigan. He then hailed the plant, saying, "You are leading the way in showing how manufacturing jobs are coming right back here to the United States of America."

But today, those LG Chem jobs Obama claimed were "coming back" are seeing intermittent layoffs instead of growth.

In 2010, the plant, which supplies batteries for the Chevy Volt, received $151 million in tax money from the U.S. Department of Energy, but it has been good money after bad.

Today, $133 million of that $151 million has been spent, but since April, the company's 200 workers have been on "rolling furloughs" because the electric vehicle market has failed to blossom as promised by many.

In 2010, the plant was projected to create 443 new jobs within five years. Those projections have been shelved as the company says it can't predict when the furloughs will stop for its current employees.

A second Chevy Volt battery plant in Michigan has also been forced to implement layoffs due to the failure of the electric car market in the U.S.

Lithium-ion battery manufacturer A123 Systems was awarded $249 million in federal government tax dollars but ended up laying off employees despite the government's cash infusion. The plant might have closed entirely if China hadn't invested an additional $465 million in the plant. Even still, its future is murky.

Via: Breitbart

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The Great Green Car Fleet Pentagon buying Chevy Volts to ‘green up’ military

The Pentagon is buying Chevrolet Volts to help “green up” the military—while propping up sales of the bailed-out automaker’s most politicized car.

The Department of Defense began purchasing the struggling luxury electric car, which retails at $40,000, this summer as part of its goal to purchase 1,500 such green vehicles. The Marine Corps Air Station in Miramar, Calif. purchased its first two Volts in July, and 18 more vehicles will come shortly to Joint Base Andrews in Maryland, where Air Force One is based, according to military magazine Stars and Stripes.

The Obama administration championed the production of the Volt. Along with the president’s pledge this year to “buy one and drive it myself … five years from now when I’m not president anymore,” the government offers a $7,500 tax break to encourage sales.

Such perks, however, have failed to drive consumers to GM car lots. The vehicle has been forced to suspend production twice this year after the Volt failed to gain a foothold in the marketplace.

GM is now offering the vehicle for as low as $169 per month, a financing deal that is generally reserved for $15,000 cars—a price so low that GM is reportedly losing nearly $50,000 per vehicle. The struggling automaker will again suspend production later this month after only 2,500 Volts drove off the lots last month.

GM has spent $1.2 billion developing the electric car and is still working out kinks, such as the Volt’s tendency to electrocute firefighters and first responders to accidents. The Department of Defense has been involved in that process, helping to test the Volt’s battery safety and capabilities.

Via: WFB

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Insight: GM's Volt - The ugly math of low sales, high costs

Loses $49,000 on each car sold. - General Motors Co sold a record number of Chevrolet Volt sedans in August — but that probably isn't a good thing for the automaker's bottom line.

Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.

Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.

And while the loss per vehicle will shrink as more are built and sold, GM is still years away from making money on the Volt, which will soon face new competitors from Ford, Honda and others.

GM's basic problem is that "the Volt is over-engineered and over-priced," said Dennis Virag, president of the Michigan-based Automotive Consulting Group.

And in a sign that there may be a wider market problem, Nissan, Honda and Mitsubishi have been struggling to sell their electric and hybrid vehicles, though Toyota's Prius range has been in increasing demand.

GM's quandary is how to increase sales volume so that it can spread its estimated $1.2-billion investment in the Volt over more vehicles while reducing manufacturing and component costs - which will be difficult to bring down until sales increase.

But the Volt's steep $39,995 base price and its complex technology — the car uses expensive lithium-polymer batteries, sophisticated electronics and an electric motor combined with a gasoline engine — have kept many prospective buyers away from Chevy showrooms.

Via:Rueters

GM Suspending The Manufacture Of Chevrolet Volt

AP

GM Suspending Chevrolet Volt Output Due To Slow Sales

By James R. Healey

General Motors is halting, for a month, the manufacture of its well-known but seldom-sold Chevrolet Volt extended-range electric car, according to trade publication Automotive News.

It would be the second interruption in production for the Volt, which can go 38 miles on battery power before needing a recharge from its gasoline engine or via a plug-in.

Via: USA Today

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DNC TO PROMOTE 'SUCCESS' OF AUTO BAILOUT

The DNC has plenty of good elected official seats still available. 

The (Convention planning) documents also give a glimpse of what parts of Obama’s record will get the most attention in the campaign, with one piece — the auto bailout — rating several mentions in the plan....

President Barack Obama claims the $82 billion auto bailout “created or saved” one million jobs.  But this is the Administration that claimed the $1 trillion so-called “Stimulus” bill “created or saved” jobs - in non-existent Congressional districts.

Chevy Volt

The administation spent $80 billion on “green jobs” - but couldn’t define what a “green job” was.  And when they finally started defining it - counted things like oil industry lobbyist, bus driver and garbage man. Suffice to say, President Obama and his Democrat cohorts have a long history of being...disingenuous.  And having a great deal of difficulty with math. 

We think the auto bailout rates several mentions - though we’re sure ours won’t come up at the Charlotte, North Carolina Democrat Lie-A-Thon.  Behold:

Taxpayers are poised to lose over $42 billion on the $82 billion auto bailout.  President Obama in late 2009 said we would make money on it.

$26.5 billion of the loss was a straight payoff to the Democrat-apparatchik United Auto Workers (UAW) union.

During the bankruptcy process, President Obama illegally paid off the UAW first and in full - before secured bondholders who should have been made whole before anyone else got a dime.  Which was incredibly disruptive and destructive of the entire bond market. 

President Obama illegally carried forward through the bankruptcy the ridiculously exorbitant UAW contracts, a huge contributing factor to GM going under in the first place - and are again, predictably, helping to wreck the bottom line.

Via Breitbart

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