Last Auto News - Chevy Volt Revealed — Now Will Taxpayers Pay For It?
Last Auto News -
Chevy Volt Picture.
The Los Angeles Times reports, “Tuesday’s unveiling of the Chevrolet Volt electric hybrid car was supposed to be a celebration of new technology, the birth of a new class of automobile. Instead, the crowd at General Motors Corp.’s Renaissance Center was buzzing over who was going to pay for it: GM or American taxpayers?” Amid federal government bailouts of several major financial institutions, the U.S. auto industry has begun lobbying Congress for billions in loans meant to subsidize an industry shift toward greener cars — like the Volt.
The New York Times reports, “Executives from General Motors and the Ford Motor Company pressed their case on Tuesday for $25 billion in federal loans in a series of high-level meetings with lawmakers in Washington.” GM Chairman Rick Wagoner presided over the Volt’s unveiling Tuesday, then immediately travelled to Washington to lobby lawmakers. “The timing was coincidental, given that G.M. was celebrating its 100th anniversary on Tuesday,” according to GM officials. “But G.M. executives said advanced alternative-fuel vehicles like the Volt are the type of project that would benefit from the loan program created last year in fuel-economy legislation.”
The AP adds, “Fritz Henderson, GM’s chief operating officer, later told reporters the company may have to make further cuts if the loans don’t come through and the U.S. auto market doesn’t recover.” GM “has lost $57.5 billion in the past year and a half.”
The Detroit Free Press notes, ” The loans — estimated to cost $7.5 billion — were approved but not paid for in last year’s energy bill, as part of the compromise to raise fuel economy standards to 35 m.p.g. With credit markets effectively closed to Detroit automakers with shaky balance sheets, executives contend the $25 billion is urgently needed to pay for more efficient vehicles.”
The L.A. Times notes that the $25 loan package is not the only Volt-related help GM wants from the federal government. ” GM is planning to ask Congress, state and local governments for a “whole list of vehicle incentives and infrastructure incentives” to help cut the Volt’s cost, said Britta Gross, GM’s manager for hydrogen and electrical infrastructure commercialization. Chief on the wish list would be a federal tax rebate for Volt purchasers.” The price of the Volt hasn’t been revealed — in part because GM is waiting for Congress to decide whether to assist Volt buyers.
The tax rebate they’re looking for? “Fifteen thousand dollars would go a long way, but I think it’s a little optimistic,” Gross told the Times. “We think $7,500 per car is a great start.”
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