Ready For Cash For Clunkers #2?

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Cash for Clunkers 2: The Return of Government Motors
Kerry Picket

Published on March 29, 2011

Ready for another cash for clunkers program? It looks like General Motors is attempting to replace it's own consumer incentives with tax payer money. The car company, bailed out of bankruptcy in 2009 by the American tax payer, appears to be turning the government into an automatic rebate provider.

The Obama administration and their friends on Capitol Hill are floating around a proposal to change the $7500 tax credit for green vehicles. This change can be found not only in President Barack Obama's budget but also a bill proposed by Senator Debbie Stabenow, Michigan Democrat.

Edmunds.com, a 45 year old trade magazine company that provides automotive information, posted a Department of Energy document listing the department's funding highlights. The proposed Obama Budget, changes the existing $7,500 electric vehicle tax credit “into a rebate that will be available to all consumers immediately at the point of sale.”

According to Senator Stabenow's website, her proposed legislation, known as the "Charging America Forward Act" (S.298), "will provide consumers with a rebate worth up to $7500 for plug-in electric vehicles at the time of purchase."

Essentially, if one were to buy a $41,000 Chevy Volt, the buyer gets a $7,500 coupon, so the final price is $33,500. In the end, the auto dealer assumes the risk of the government giving them this tax credit.

It is pretty convenient that Ms. Stabenow, who represents a state where GM is headquartered is pushing a bill that is also supported by Edison Electric Institute, whose president was loaned a Chevy Volt, Eaton Corp: the sole American producer of car recharge systems, and Battery Electric Vehicle Coalition, a lobbying group for the electric car industry.

In fact, Department of Energy's David Sandalow told Bloomberg News in February the insta-credit would operate the “same way the 2009 ‘Cash for Clunkers’ program worked.”

The Detroit News reported Vice President Joe Biden said at an Indiana battery assembly plant, "You won’t have to wait,’ it would be like the cash-for-clunkers program.”

GM is likely the most excited about this instant credit plan. “General Motors supports the instant credit saying the bill “integrates all of the components necessary for successful acceleration of electric vehicles in the marketplace," The Detroit News reported.

Is the United States really prepared to deal with another tax payer paid for deal that will only benefit the now government owned GM? After all, did Cash for Clunkers part one really work out for the tax payers and auto dealers? Washington, D.C. based organization Americans for Tax Reform didn't think so and wrote in late October of 2009:

The program began on July 24th with a budget of $1 billion and by July 30th they were out of money. Giving people “free” money to buy cars is definitely popular. Congress then allocated another $2 billion that lasted almost until the end of August. That’s right, $3 billion in under a month. The program didn’t help the economy or auto industry. Despite a bump in the 3rd quarter to GDP and auto sales, consumer spending dropped 0.5% in September and the vehicle output bump was artificial and unsustainable, meaning it will drop off considerably in the next quarter as the market stabilizes to its real level. As Nick Gillespie and Veronique de Rugy pointed out today over at Reason, even the reported GDP bump is misleading, because is includes government spending. So if government spending increases it will increase the GDP, but that doesn’t mean any more was produced.

There are also the unseen costs of this program. By encouraging people to junk older vehicles, they lowered the supply of cheap used cars. When you lower supply and keep demand stable, the price goes up. With fewer used cars on the market, the prices for remaining used cars increases. This will make it more difficult for younger drivers or low income drivers to buy cars to get to work or school. (A video by Congressman Ron Paul further explains how it hurts the poor here.) At least the wealthy got a handout to buy their brand new cars though right?

Unfortunately, when ideas turn bad, it does not preclude another similar bad idea to be proposed later on.

http://www.washingtontimes.com/blog/watercooler/2011/mar/29/cash-clunkers-2-dumped-capitol-hill/#
 
these things are selling fast. better go get one before they are all gone
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http://www.fenderbender.com/FenderBender/March-2011/Chevy-Volt-sales-fall-in-February/


Chevy Volt sales fall in February
Jake Weyer

March 4, 2011 — Sales of Chevrolet’s Volt were down 40 units in February compared to January sales, according to the company’s monthly sales report.

GM sold 321 of the new plug-in hybrid electric vehicles in January and 281 in February. The numbers were released shortly after GM announced plans to make the Volt available nationwide by the end of the year.

At the end of January, the car had been delivered to customers in the Washington, D.C. area, California, New York, Connecticut, New Jersey and Texas. Deliveries to Michigan are planned this spring and the car is supposed to be available nationwide during the second quarter of the year, with deliveries starting on the east coast.

Overall, Chevrolet reported a February sales climb of 69 percent in February when compared to the same month last year. Nearly half of the month’s 142,919 vehicles sold were four-cylinder models. The largest gains were made in Cruze, Equinox, Traverse and Silverado sales. Click here for more February sales highlights.

http://www.mnn.com/green-tech/transportation/stories/chevy-volt-and-nissan-leaf-sales-figures


Chevy Volt and Nissan Leaf sales figures
Automakers released their official December 2010 sales figures, which included the Chevy Volt and the Nissan Leaf for the first time.
By Melissa Hincha-OwnbyWed, Jan 05 2011 at 2:28 PM EST 34 Comments

It’s official, there are now mass-produced all-electric vehicles on the streets of America thanks to Nissan North America. Yesterday, automakers posted their final December 2010 sales figures and for the first time, the Nissan Leaf appeared on this list. During the month, the company sold 19 Nissan Leaf models to customers in select cities including Olivier Chalouhi. Chalouhi, who lives in Redwood City, California, was the first Nissan Leaf owner in the United States.

The other much-anticipated vehicle release of late 2010, the Chevy Volt, fared better in sales than the Nissan Leaf despite its higher price tag. During December 2010, Chevy sold 326 Volt models. Determining the owner of the first Chevy Volt is a bit more difficult than figuring out who owned the first Nissan Leaf.
 
stabenow, aka stabs em all, wants to use taxpayer dollars to buy union votes. Same as the national lawn jockey. Da*n democRATs.
 
So let me ask, has this passed? If so when will it take effect? Because if it does, I may seriously consider buying one of those all electric Bad Boy Buggies and take advantage of this $7500 credit.
 
Originally Posted By: RubenatorSo let me ask, has this passed? If so when will it take effect? Because if it does, I may seriously consider buying one of those all electric Bad Boy Buggies and take advantage of this $7500 credit.

Sounds like a good idea!! I've always wanted one... Keep me posted!
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TOP GREAT FEATURES OF THE CHEVY VOLT

The Chevy Volt will improve the U.S.'s standing in the world, because if that’s the best U.S. Government Motors can do, there's no reason for other countries to feel threatened.

The Chevy Volt is made for the green lifestyle, because its 5-hour charge time gives you time to sort your recyclables, change the incandescent light bulbs in your house to CFLs, install solar panels on your roof, and watch An Inconvenient Truth….all before hitting the road!

The absurdly high price tag of the Chevy Volt shows your dedication to a green lifestyle.

Since the government is used to paying $600 for a hammer, getting a car’s cost down to $41,000 is actually pretty good for them.

The Chevy Volt is a great car for a parent to give to teenagers, as the charge time means they have to give five hours’ notice before going anywhere, and you can rest assured they're not going to go very far.

The Chevy Volt has greater fuel efficiency the less you drive it. The Volt is even comparable in fuel efficiency to a bicycle if you never drive it at all.

GM’s strategy of making the Chevy Volt unappealing to consumers is financially sound, since GM loses money on each Volt is sells.

The Chevy Volt’s inconvenience and cost encourage the greenest activity of all: Staying home.

See? No wonder they sold over 280 of them last month.
 
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