Wednesday, July 18, 2012

June Sales Show Chevy Volt Catching on Like Fire

According to June sales numbers, the Chevy Volt may be catching fire in more ways than one.  Sales of the Volt have doubled compared to sales from the same period last year.  More over, sales for the first six months of 2012 have more than tripled all of 2011 sales.

The statistics that trumpet double or even triple growth sound pretty impressive, that is until you look under the hood.  Volt sales for June 2012 were a whopping 1,760.  Compare that to June sales of 18,983 for the Chevy Cruze, Volts' fossil fueled and much less expensive twin brother.

Sales of the Volt, which costs $41,000 and comes with a $7,500 taxpayer funded check, is a break even product for GM.  Which means the double or even triple increase in sales represents a net income gain for GM of the astounding sum of zero dollars.  At this pace, GM should be able to recoup the $700 million investment they made to develop the Chevy Volt sometime around never.

With all the impressive Volt sales numbers being thrown at us by GM, the media, and the Obama administration it's easy to miss just how damaging those increased sales are to the country's bottom line.  Each Chevy Volt sold costs taxpayers thousands of dollars and we're not just referring to the $7,500 rebate check the Obama administration cuts for each one and wants to bump up to $10,000.  By the time you include all the stimulus, tax breaks, and other incentives going to the companies involved in the production of the Volt, each one costs tax payers roughly $250,000.

Even more disconcerting then the millions lost in development of the Volt and the billions being spent by taxpayers to subsidize its sales, is the tax credit abuse that has arisen from GM's 60 day money back guarantee, abuse which may also account for the increase in sales.

After a number of Chevy Volt's inexplicably burst into flames, like the one pictured above, instead of recalling the vehicles until a fix could be found, GM decided to offer a 60-day money back guarantee.  This means purchasers can buy the vehicle, file for their $7,500 check from the government, and then return it, keeping the $7,500.

Now before you try and claim no one would do that, take a look at this.  A tax rebate for electric vehicles included in Obama's 2009 Stimulus allowed thousands of buyers to purchase golf carts and receive the entire purchase price back in tax rebates.  Reporter John Stossel took advantage of the loophole as part of a story on his TV show.

The Democrats seem hell bent on raising your taxes, even threatening to do so, so they can continue their war on the rich.  So, as long as you have the cash or credit to purchase a Volt and as long as Obama is willing to pay you to do so, you might as well go buy one, drive it around for a month and then return it.  You may not get to keep your current Bush tax cuts, but maybe you can at least get some of that money back, if not make a little.


Anonymous said...

It is amazing how you can cherry pick, ignore or make up “Facts”. Most of the major talking points in this political opinion piece have been proven time and time again to be false yet people with agendas run with it anyway. Look at the facts and get a good laugh at his article. The only place 5 Volts fires have occurred is in his imagination. Actual number of Volt fires in real life driving is ZERO! The Volt is actually selling better than the Corvette. If you look back in history, the Volt sales for the first two model years are higher than the Prius sales in their first 2 model years. We can all see what a failure the Prius is. I own a Volt and I can tell you without a doubt the Volt is not a Cruze with a big battery. The Volt has more in common with a BMW3 series than a Cruze. I can understand you not agreeing with the GM bailout – many of us don’t. I can understand you not agreeing with the President – many of us don’t. What I can’t understand are these non-stop political attacks on the Volt itself. The Volt is a good American made car that competes well against any other vehicle in its price. Would I like to see the price come down? YES, but that doesn’t negate the good in the car. FYI – I am a Volt owner. Been driving for ~ 9 months, ~6400 miles. I’ve used 5.3 gallons of gas since I have had the car. Still working on the tank the dealer gave me when I picked it up. I drive ~30 miles a day. My electric bill has gone up less than $1 per day since I started charging. I average ~3 cents a mile in operating costs. Show me what’s not to like?

theKansasCitian said...

First, let me say no one is attacking the Volt, itself. If it cost about $18,000 it would be a great alternative fuel vehicle. But, it doesn't. In fact, it isn't even economical. When compared, at current gas prices, to a comparable Honda Civic, one would have to drive the Volt more than 200,000, without paying for any maintenance or replacement batteries, before it would cost the same to own and operate the civic over the same distance, including all the gas and maintenance costs. Don't believe me, do the math yourself.

Second, the Cruze and the Volt are the same vehicle. The are both built on the Delta II platform. Sure, they have some minor body styling and interior differences, but those aesthetic and luxury differences amount to just over $2,000 in production costs. Yet, the purchase price difference is over $24,000.

Third, in order for GM to break even on sales of the Volt, the government has to kick in a $7,500 rebate check to buyers, reducing their effective purchase price to $33,500, instead of its $41,000 retail price.

Fourth, You say it is selling as well as the Corvette in it's first year. However, the Volt is not a sports car. It is a compact sedan and when rightly compared to similar compact sedans launched at the same time, i.e. the Cruze, it is far lagging in sales.

Fifth, the 5 fires are very real. Congressional investigations and GM led investigations are being conducted. You are right, the fires aren't happening while driving down the road, it is much worse. They are happening in garages while plugged in. GM has yet to be able to find a cause.

I have no problem with companies producing and marketing electric vehicles or otherwise. It's when the government steps in to subsidize the production and sale of vehicles that there is no consumer demand for that I have a problem with.

You want to talk about picking and choosing data, we can do that all day. So far, your information has been based on anecdotes that have no basis in logic or fact, as I have just shown you.

Anonymous said...

it's amazing how BMW never needs to bribe the public into buying it's products, poor GM still under the thumb of the wretched obama regime, well that's gonna change in NOv 2012 and I wouldn't buy a chevy volt for 30K tax rebate!!

Anonymous said...

I am soooooo dumb for having read this blog post. I really hope the rest of the population of Kansas City is not as stupid as theKansasCitian, because then there is no hope for your future. I truly hope the server that contains this uninformed trash explodes tomorrow.