But even with Middle East and North African disorders keeping oil prices high, electric vehicles are still not cost competitive- nor does the consumer seem to want them at any cost.
General Motors essentially confirmed Obama’s bad bet when they admitted that the recent rash of “viral” Chevy Volt sales have been stoked by discounts of as much as $10,000 off the MSRP of $40,000.
Three months ago industry insiders revealed that General Motors was taking a loss of around $50,000 per Chevy Volt sold. That was assuming a sales price without the new and improved $10k discount. If you add in the $7,500 government subsidy, the Volt’s cost to the consumer is around $22,500.
Cost to the taxpayers is much, much higher.
Before the discount, the Volt cost General Motors- a joint venture between Obama, Inc., and the United Auto Workers that was subsidized by your tax dollars- around $650 million just this year according to estimates by industry insiders. In August alone the discount bumped up the price to GM by another $28 million.
So far this year the company has sold around 13,000 Volts, compared to the 60,000 unit goal that they set at the beginning of the year.
"Let's face it, over $40,000 is asking a lot for a compact car," says Bob Lutz, who helped develop the Volt- and was present when GM was hurling toward bankruptcy.
"Its prime purpose was to introduce a new generation of technology," says the now-retired Lutz, according to CBSNews. "And at the same time ... demonstrate to the world that GM is way more technologically capable than the people give it credit for."
I never knew technology was capable of losing this much money so quickly.
I’m impressed.And now so is the Congressional Budget Office.
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Wednesday April 23rd, 2014 | John Ransom
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Tuesday April 22nd, 2014 | John Ransom