President Obama’s Chevy Volt is actually a hybrid and will do most of its driving on a gas engine. It’s a $12,000 body in a $48,000 price tag minus the tax credit (our tax money subsidizes this). There’s not much of a heater because it needs to preserve battery power so expect to freeze in the winter. And you will be driving along with GE’s Geoffrey Immelt, who has agreed to purchase half the total produced of the car no one wants.
CHEVY VOLT: THE CAR FROM ATLAS SHRUGGED MOTORS
by Patrick J. Michaels
This article appeared in Forbes on March 16, 2011.
The Chevrolet Volt is beginning to look like it was manufactured by Atlas Shrugged Motors, where the government mandates everything politically correct, rewards its cronies and produces junk steel.
t turns out that the premium-fuel fired engine does drive the wheels — when the battery is very low or when the vehicle is at most freeway speeds. So the Volt really isn’t a pure electric car after all. I’m sure that the people who designed the car knew how it ran, and so did their managers.
Why then the need to keep this so quiet….
…In other words, GM was desperate for customers for what they perceived would be an unpopular vehicle before one even hit the road. It had hoped to lure more if buyers subtracted the $7,500 from the $41,000 sticker price. Instead, as Consumer Reports found out, the car was very pricey. The version they tested cost $43,700 plus a $5,000 dealer markup (“Don’t worry,” I can hear the salesperson saying, “you’ll get more than that back in your tax credit!”), or a whopping $48,700 minus the credit.
This is one reason that Volt sales are anemic: 326 in December, 321 in January, and 281 in February. GM announced a production run of 100,000 in the first two years. Who is going to buy all these cars?
Another reason they aren’t exactly flying off the lots is because, well, they have some problems. In a telling attempt to preserve battery power, the heater is exceedingly weak. Consumer Reports averaged a paltry 25 miles of electric-only running, in part because it was testing in cold Connecticut. (My engineer at the Auto Show said cold weather would have little effect.)….
….Recently, President Obama selected General Electric ( GE – news – people ) CEO Jeffrey Immelt to chair his Economic Advisory Board. GE is awash in windmills waiting to be subsidized so they can provide unreliable, expensive power.
Consequently, and soon after his appointment, Immelt announced that GE will buy 50,000 Volts in the next two years, or half the total produced. Assuming the corporation qualifies for the same tax credit, we (you and me) just shelled out $375,000,000 to a company to buy cars that no one else wants so that GM will not tank and produce even more cars that no one wants. And this guy is the chair of Obama’s Economic Advisory Board?
It really is enough to get you to say Atlas Shrugged. For those who do not know, or who are only vaguely familiar with, the Ayn Rand classic, it is a story of a society in decay, where politically favored technologies and jobs are foisted on the nation, where innovations that might threaten existing corporatist cartels are financially or physically sabotaged as unemployment mounts and the nation spirals into a malaise that makes the Carter years look like Mr. Rogers’ Neighborhood. Read more here: The disappointing Volt