• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • GM Recalling Volts, White House Headed to Detroit to Celebrate?

    There’s more bad news in the continuing saga of the Chevy Volt. The Associated Press is reporting today that General Motors will recall 8,000 Volts in order to make modifications to keep them safe during crashes, all on the eve of the North American International Auto Show kicking off in the Motor City next week. (Bear in mind that only about 8,000 Volts were sold last year.)

    Guess who’s headed to the auto show, likely to bask in the glory of the industry they claim to have saved? The Obama Administration, of course, including Secretary of Energy Steven Chu. The trouble is, all that glitters is not gold when it comes to the Administration’s efforts on behalf of the auto industry, and their push for electric vehicles is a case in point.

    Take the Volt. (Well, OK, if you took one, you’d be in the minority.) Recall aside, GM’s highly touted electric vehicle has been a total flop with consumers despite a $7,500 taxpayer-funded tax credit intended to soften the blow of its $39,145+ sticker price. Last year, only 7,671 Volts were sold, falling well short of the paltry 10,000 that GM expected to sell.

    Keep in mind that the Volt was supposed to be one of the leaders in the greening of the auto industry. Secretary Chu explained, “Diversifying our transportation fleet with hybrids, electric vehicles and other alternative-fuel vehicles is a critical element in President Obama’s long-term plan to break our dependence on foreign oil and invest in America’s growing clean energy economy.” And President Obama predicted that electric cars would help create thousands of new jobs with surging demand for the vehicles. Unfortunately, they haven’t caught on like wildfire with American consumers (though the Volt literally has been catching on fire). And that’s going to wind up costing taxpayers real dough.

    The Washington Post reported in early December that the Obama Administration “poured roughly $5 billion in taxpayer funds into the electric-car industry, offering incentives to manufacturers, their suppliers and even car buyers who might want to go green.” And that investment didn’t pay off. According to the Post, several companies that received hundreds of millions in federal grants have gone bankrupt, largely because the President’s call for 1 million alternative energy vehicles by 2015 has fallen woefully short. Without demand, those companies can’t keep their doors open.

    “But wait a minute! The American auto industry is going strong,” you say. Yes, sales are up, and that’s great news, but not in electric vehicles as the President predicted. The National Automobile Dealers Association (NADA) reports that it’s gas-guzzling sport utility vehicles that are leading the increased sales volume, not electric cars. From the NADA: “The SUV segment had the largest volume increase with an increase of 24.6% on volume 998,000 units (led by new Ford Explorer and Jeep Grand Cherokee).”

    Will the President’s surrogates tout those politically incorrect purchases when they head to Detroit next week, or will their photo op on the floor of Cobo Hall convention center be in front of the President’s favored alternative energy vehicles? We’ll find out soon enough. But if they want to shake hands and mingle with the crowds, they’ll probably find more luck hanging out around the pickup trucks and the SUVs, not around the Chevy Volt.

    Posted in Featured [slideshow_deploy]

    9 Responses to GM Recalling Volts, White House Headed to Detroit to Celebrate?

    1. Will says:

      Makes me wonder how these 110 Volt Chevy's the Obama Administration bought are performing now that it's Winter time?

    2. Lloyd Scallan says:

      Is it just me, or does anyone else notice that everytime bad news comes out about Obama's GM cars,
      out of the clear blue, non Obama car companies have problems?

    3. Stirling says:

      GM = Government Motors + Green Movement = Epic Fail. GM please pull the government cord out, you embarrass yourself by being pwnt by the taxpayer.

    4. Chris says:

      Can anyone explain why a person would pay Forty Grand for a so called CAR to go Forty Miles, and Please do not use the Heat,A/C, Fan, Radio ,ETC. That's a drain on the FIRE causing battery! What a GREEN JOKE !!!!!!!!

    5. Denise Utah says:

      The Chevy Volt is a perfect example of when the government meddles in the economy by picking winners and losers. The taxpayer is left holding the bag. In this case, I wonder how much each Volt cost the taxpayer? Has Heritage done a study on that? I'll be willing to bet it's over $100,000 per car.

    6. Bobbie says:

      it's with great unfortunate humor! the battery being the selling point promoted by government (uncertainties,) evaluated by the government, recommended almost by government force and with special bribing (rebate,) we all that aren't tax exempt pay for and the battery finds to be the greatest hazard! please disallow the abuse of our tax dollars when our choices to our personal lives is proven to serve us and the economy so much better.

    7. Leon Lundquist says:

      Sport Vehicles is it? Maybe Americans are manning up, getting working vehicles and off road stuff just in case Obama drives us into the hills. There is a great electric vehicle in our future I am sure but scientifically these dummycrats have jumped the gun. Obama is a dreamer. I wish he'd go back where he came from and leave us Americans alone.

    8. Bobbie says:

      and to take in regard the battery is the selling point! outcome? it's one out of many significant hazards that the president misappropriates everyone's earned dollar to promote…

      appropriate for America that the government doesn't use tax dollar funding for the "special interests" of the president's that continues his public unconstitutional embarrassments and unsafe decisions put on society. We don't want our money going into the president's interests. That's not what it's for. GM should've been stronger and wiser than to depend on government over their patrons.

    9. Ted Marshall says:

      What is all the excitement about the CEO (obama) has decided that he will continue to make and sell electric cars no matter how much it cost's the tax payers. He will have the EPA put enough restrictions on all the other car manufacturers to put them out of business. He will sell more cars, he's a hero.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×