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President Obama with a Chevrolet Volt

Rep. Mike Kelly (R-PA)  (Source: flickr.com)
Despite recent issues with the Chevrolet Volt's battery, GM expects increased Volt sales for November and a recent survey found that Volt customers are satisfied. A GOP lawmaker may, however, ruin EV success by fighting the $7,500 tax credit

General Motors Co. may have hit a few speed bumps this year with the Chevrolet Volt extended-range EV's battery-related incidents, but things seem to be looking up with an expected increase in November Volt sales and a recent survey that confirmed Volt customer satisfaction.

The Chevrolet Volt had its best-ever sales month in October 2011, but according to GM Spokesman Jim Cain, November Volt sales are expected to surpass the previous month.

In October, GM sold 1,108 Volts, which was the first time it had outsold the Nissan Leaf EV since April. For the year through October, GM sold a total of 5,003 Volts.

Experts say that it is now very unlikely that GM will meet its sales goal of 10,000 Volts sold in 2011, but GM predicts increased sales in November over the month of October. The final sales figures for November have not yet been released.

Perhaps the reason for increased sales expectations is Volt customer satisfaction. According to a recent survey by Consumer Reports, Chevrolet Volt owners "love their cars."

The Consumer Reports survey, which was released Thursday, is based on over 314,000 opinions of 2009-2012 model year vehicles. The survey found that 93 percent of Volt owners who participated said they'd buy the EV again.

However, the survey was conducted only a few months after the Volt hit showrooms, and mainly consisted of early buyers and enthusiasts. The survey was also taken before the formal investigation of Volt/lithium battery safety began.

Earlier this year, the Volt underwent a series of tests at a National Highway Traffic Safety Administration (NHTSA) facility in Wisconsin. Three weeks after a side-impact crash test on May 12, the Volt went up in flames while parked at the facility, catching nearby vehicles on fire.

This sparked a NHTSA investigation, where three more Volts were tested November 16, 17 and 18. One battery had normal results while another emitted sparks and smoke, and the third caught on fire one week later. The NHTSA is now conducting a formal investigation of the vehicle's safety.

The Volt may be seeing the upside of a nasty situation for now with a potential sales increase and customer satisfaction, but one GOP lawmaker is looking to throw a wrench in the EV industry's success by fighting the $7,500 tax credit.

Rep. Mike Kelly (R-PA) told Congress Wednesday that he wants the $7,500 tax credit for EVs to cease because he says electric vehicles have not met desired goals and the tax credit only benefits the wealthy. He specifically noted that the annual income of Volt owners is $175,000.

"[The Volt] has become the poster child of President Obama's failed green agenda," said Kelly. "Like many green initiatives promoted by this administration and bankrolled by the American taxpayer, the electric car is better in theory than in practice; has limited consumer demand; is heavily subsidized; and has fallen short of reaching targeted goals. Despite the fact that the federal government has no business subsidizing a product that a manufacturer could just as easily promote through rebates and other buyer incentives, the tax subsidies are largely going to the affluent few who can actually afford to buy an electric car, which costs anywhere between $40,000 and $97,000."

Kelly's "like many other green initiatives promoted by this administration" comment was more than likely referring to this year's Solyndra disaster, where the U.S. government loaned solar panel company Solyndra $535 million in 2009 despite warnings that the company would go bankrupt. Solyndra filed for bankruptcy on September 6, 2011.

Sources: The Detroit News, The Detroit News



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RE: A Republican in the House
By omnicronx on 12/1/2011 5:28:46 PM , Rating: 2
quote:
However, spending an extra 15k (or more) on a car to save a few k on gas over several years is idiotic (meaning if the decision was purely economic, it's a bad decision to buy a Volt). The only reason someone would buy it would be to wear it as a "green" badge of honor. If you desire to wear that badge, by all means, buy a Volt. But please stop asking me to pitch in to pay for your car.
So let me get this straight, you don't think there should be an incentive, but you outright admit that nobody is going to buy the car (outside of those wanting to wear the green badge) if it costs 40K.

We are talking about technology that needs to supplant another with over 100 years of technological (let alone manufacturing) improvements. Unless you want to wait another 50 years, some kind of incentive has to be offered.

Not saying its justified (if the power comes from the grid you are still paying for it, not sure if any kind of cost benefit has been performed) but you are clearly missing the point of why it was implemented in the first place.

Many of the technological improvements you use everyday, could have been years away if not for government subsidy, just remember that...

All of this said, why is it being offered now? I'm pretty sure GM is producing as many Volt's as they can, and would sell for 40k to the normal early adopters just as easily without the incentive. It should be removed until the incentive will actually help drive sales. i.e Until manufacturers increase production and start having trouble moving these vehicles at 40k, until then mass adoption is not really under way anyways.


RE: A Republican in the House
By Schrag4 on 12/1/2011 5:55:12 PM , Rating: 2
quote:
So let me get this straight, you don't think there should be an incentive, but you outright admit that nobody is going to buy the car (outside of those wanting to wear the green badge) if it costs 40K.


Well, as others who defend the tax credit here have pointed out, the Volt is considered a "luxury" car. So to answer your question, NO, I absolutely do not think the govt should be handing out tax incentives for luxury items.


RE: A Republican in the House
By Grast on 12/1/2011 6:05:02 PM , Rating: 1
so question for you. when ICE cars were just starting to suplant the standard for the day in 1880's (horses and horse draw carrage), did the government substidize Americans to buy these new devices? Anwser: NO NO and NO.

It was only until 1913 when Ford mastered the assymbly line did the cost of cars come down to the point where it was economical for the average person to own.

**************

How about computers. In the 1970's, when personal computers were just coming about. did the federal government substidize the industry in order to make computers take off?

Answer: NO NO and NO

****************

How about the other great inventions of the 1900's? How many of these devices had to recieve government assistance in order to take off.

Answer: VERY FEW to NONE

*******************

The final anwser to this question is that government programs like the Volt incentinves unfairly asks every tax paying American to take on the risk for a new product.

all of the risk for the Volt should be GM and it's share holders. American tax payers should not be flipping the bill.


RE: A Republican in the House
By Reclaimer77 on 12/1/2011 9:06:28 PM , Rating: 1
quote:
Many of the technological improvements you use everyday, could have been years away if not for government subsidy, just remember that...


I think you're just saying that because it sounds good. I doubt you have any idea if this is true or not. Please give me a list of consumer products that we use that were helped to the market because of a tax credit.


RE: A Republican in the House
By mufdvr3669 on 12/2/2011 3:11:08 AM , Rating: 2
How about research from Universities and such that receive government to create new technologies such as medicine? A lot of medical advances happen through government loans and grants to researchers and also to tax breaks for the companies for developing medications and such.


RE: A Republican in the House
By Reclaimer77 on 12/2/2011 7:02:04 PM , Rating: 2
Giving people money to buy a freaking car is nothing even close to a research loan or grant. You're not even on the same subject here dude.


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