Monday, November 24, 2014 - 6:15pm
Neal Barton's POV

The Volt is a dolt

POV

POSTED: Monday, September 10, 2012 - 5:44pm

UPDATED: Thursday, September 13, 2012 - 3:14pm

Another example of government goes where it does not belong.

It gets involved in bailing out General Motors.

Part of that deal was forcing a car on the American public. Ladies and gentlemen, I give you the Chevy Volt. I'll have to give it to you because no one else wants it.

We've had to endure all the Bravo Sierra about the Volt from auto writers who have been pulling for it. But, according to an article in Reuters, it's over engineered and too expensive.

GM is losing almost $50,000 for each copy it puts out-- 49,000 to be exact.

It costs $89,000 to build.

$89,000!

And they want the American public to embrace it. One day we will have a a car that will do the same thing for a lot cheaper. But it will come from the free market.

Even offering leases of 200 months a month, no one wants this thing except for GE.

They buy them because they are in bed with the administration. GM tried to come up with some spin last week that they were shutting down production of the Volt to make something else for a while.

But, we weren't born last week. We knew what's up.

Now, they admit it. According to this article, GM acknowledges the Volt continues to lose money, and suggests it might not reach break even until the next-generation model is launched in about three years.

The next generation? Let's kill this pig in a polk right now.

The government almost always picks losers.

By the way, the vehicles helping regenerate the car business right now, it's stuff people want like pickups and SUVs.

Work on that, GM, please.

That's my point of view, what's yours?

You can email me at pov@ketknbc.com or Facebook me at KETK Neal Barton.

Comments News Comments

Just as Mr.Rush Limbaugh predicted....union government motors waste of TAXPAYERS $$$.
Outlaw unions and SAVE the United States of America. Vote Romney/Ryan in November.

Is this the same program the required Dodge to pull franchise right to dealers, some where selling more than 30 cars a month and cost hundreds of jobs?

OK, the car guy has to weigh in just a bit. Mr. Buffalo (?) is right. The Volt was conceived in the early 2000's and the first prototype was making the auto show circuit in 2007. It is an excellent car (sorry) but it is expensive, as most 1st generation technology is. The Prius got $1-billion in Japanese government R&D money and took 5 years to turn a profit. Now it is a sales star. For my good friend Neal, the redesigned Silverado comes out in 2013. Something for everyone.

The truth is, our government still owns 26% of GM's stock. At the current price per share that represents a 10 billion dollar loss. That means that we the people, who are actually the government will have to bite the bullet again, because GM has lost another 2% of the auto sales market. Now they are down to 18% and in free fall. REAL ECONOMISTS know you can inject stimulus money into the market if you carefully pick the market and then you must have a withdrawal plan to get your money back.

Free enterprise (GM) brought us the Volt! The connection to government is tenuous at best. True, GM was rescued, but it's profitable now and paid off the loans. Governments generally aren't very good business people, however rescuing failing industries in order to protect around a million jobs was, and still is, the right decision. We would have careened over the cliff into the Great Depression II if those circa 2008-2009 actions had not been taken.

After Obama kicked GM bondholders to the curb and used taxpayer bail-out to save the union workers from having to renegotiate their contracts under bankruptcy, media (enemy of our nation) proudly announced that GM paid back the government 6.7 Billion bail-out prematurely; not so. GM traded the TARP 6.5 billion bail-out loan @ 7% for a, get this, a second TARP@ 9% 2.5 Billion loan to pay Union through 2017. Oh well, GM paid back 4 Billion anyway you say, nope; the government owns 61% of GM stock

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