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.