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Ever wonder how much money each chevy volt produced so far has cost taxpayers?

15K views 261 replies 33 participants last post by  mschaffer66 
#1 ·
:blah::blah:Tax incentives to force a car through government motors that people don't even want to buy... :blah::blah:


http://www.michigancapitolconfidential.com/16192

Chevy Volt Costing Taxpayers Up to $250K Per Vehicle

By Tom Gantert | Dec. 21, 2011 Twitter Follow Tom Gantert on Twitter

Each Chevy Volt sold thus far may have as much as $250,000 in state and federal dollars in incentives behind it – a total of $3 billion altogether, according to an analysis by James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.

Hohman looked at total state and federal assistance offered for the development and production of the Chevy Volt, General Motors’ plug-in hybrid electric vehicle. His analysis included 18 government deals that included loans, rebates, grants and tax credits. The amount of government assistance does not include the fact that General Motors is currently 26 percent owned by the federal government.

The Volt subsidies flow through multiple companies involed in production. The analysis includes adding up the amount of government subsidies via tax credits and direct funding for not only General Motors, but other companies supplying parts for the vehicle. For example, the Department of Energy awarded a $105.9 million grant to the GM Brownstown plant that assembles the batteries. The company was also awarded approximately $106 million for its Hamtramck assembly plant in state credits to retain jobs. The company that supplies the Volt’s batteries, Compact Power, was awarded up to $100 million in refundable battery credits (combination tax breaks and cash subsidies). These are among many of the subsidies and tax credits for the vehicle.

It’s unlikely that all the companies involved in Volt production will ever receive all the $3 billion in incentives, Hohman said, because many of them are linked to meeting various employment and other milestones. But the analysis looks at the total value that has been offered to the Volt in different aspects of production – from the assembly line to the dealerships to the battery manufacturers. Some tax credits and subsidies are offered for periods up to 20 years, though most have a much shorter time frame.

GM has estimated they’ve sold 6,000 Volts so far. That would mean each of the 6,000 Volts sold would be subsidized between $50,000 and $250,000, depending on how many government subsidy milestones are realized.

If battery manufacturers awarded incentives to produce batteries the Volt may use are included in the analysis, the potential government subsidy per Volt increases to $256,824. For example, A123 Systems has received extensive state and federal support, and bid to be a supplier to the Volt, but the deal instead went to Compact Power. The $256,824 figure includes adding up the subsidies to both companies.

The $3 billion total subsidy figure includes $690.4 million offered by the state of Michigan and $2.3 billion in federal money. That’s enough to purchase 75,222 Volts with a sticker price of $39,828.

Additional state and local support provided to Volt suppliers was not included in the analysis, Hohman said, and could increase the level of government aid. For instance, the Volt is being assembled at the Poletown plant in Detroit/Hamtramck, which was built on land acquired by General Motors through eminent domain.

“It just goes to show there are certain folks that will spend anything to get their vision of what people should do,” said State Representative Tom McMillin, R-Rochester Hills. “It’s a glaring example of the failure of central planning trying to force citizens to purchase something they may not want. … They should let the free market make those decisions.”

“This might be the most government-supported car since the Trabant,” said Hohman, referring to the car produced by the former Communist state of East Germany.

According to GM CEO Dan Akerson, the average Volt owner makes $170,000 per year.
 
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#130 ·
I agree that it doesn't but I was responding to another comment about GM wanting to change dealerships and they can't, yes they can and they are. Plus not that long ago we weren't sure if GM was going to yank our franchise so lets say we do this 1 million remodel and in 2 years they decide they want to take away our franchise then what do we do find another franchise, maybe, and then remodel again or what if 2 yrs from now they want us to look a different way guess what we get to remodel again and this happened a while back.
 
#131 ·
I know it takes $$ to make $$ but this remodel is costly and lets face it business is not that good. Basically I am pissed because GM doesn't ask nicely they don't offer to do it in steps it is our way or the highway and I don't even want to think about the business we will lose while doing the remodel, it will not be easy to conduct business with a torn up building
 
#133 · (Edited)
Your bitching, but the building doesn't looked like it has been touched since the 80's. Curb appeal makes a huge difference to new customers. You have to grab a customers attention and a bland brown brick building just doesn't do it among the flashy modern dealerships.



This one is only slightly better but still not comparable to a dealer that has done the upgrades curb appeal. I love the giant Chevy trucks sign, but there are more Jeeps and Dodge's on the lot than anything (in this old pic)

I know your location, and I know it will be a tough sell up there no matter how the dealership looks. But my uneducated (in this business) guess with the competition issue with other makes (especially imports) is the dealership appearances, and how they have treated their customers. Domestic dealerships especially have a poor history of customer service.

 
#134 ·
building was built in 1988 and we have done a lot over years yes regular maintenance and up keep, expanded our lot, built a body shop, built a quick lube and car wash facility and yes the remodel will look nice I am just not sure that it will increase our sales or profitability. again its not the fact that we have to remodel just they way they are going about it. thank you all for listening to me bitch about GM, I know there is nothing I can do stop it or change it and in long run the building will look great but it feels better to bitch sometimes.
 
#137 ·
We own a franchise and the brick and mortar and land. Gm does not own any part of our store. That boat in my avatar is a 1989. I admit to being on a bitching rant here so thanks again for listening and putting in your two cents. Owning any business eight now is not easy and is very stressful. The above picture of our houghton lake store is not just gm we have chrysler dodge jeep ram truck also. We are opting out of the remodel in that store because gm wants us to completely separate show rooms and service right up area. So that store is no longer eligible for certain programs within gm and in my opinion our allocation will be affected by it.
 
#139 ·
This thread sums up why I come to this site and:
-pick on my buddy greasemonkey
-make fun of the inbred racist hillbillys

People have no idea WTF they are talking about. Scooter, hagga r and even GM have a very good understanding of the auto industry. People that are retarded argue with them. They don't know what they are arguing, but they do.

I mean. Fuck man.

Why are people so stupid?
 
#156 ·
Because GM learned that much of the damage done to the domestic auto brands was done by the dealers.

Dealers who screwed people on service, did half-assed or imaginary warranty work, didn't want to deal with younger customers buying smaller margin vehicles, etc... Ask 10 people who won't buy domestic, and I'll bet you'll find that 70%+ of their issues are dealer-related rather than product-related.

While the dealership is owned by the franchisee, it's GM's storefront, and it represents the front line face-to-face experience that GM customers have with GM. It's in their best interest to ensure it's everything they want it to be, and better than the experience to be had at Toyota, Hyundai, VW, etc...

I have a co-worker who just got into a new Tahoe after having the small Benz SUV. While she likes the Tahoe, she's thinking that she'll go Benz again with her next vehicle based on the dealer experience. Inflexible hours, scarce loaner vehicles, messy waiting areas & restrooms are her issues. The vehicle has been trouble-free - it's literally the experience she doesn't like. And yes, she's demanding and particular. But one dealer selling a $55K SUV has a clean dealership with ample loaners, flexible hours and "bend over backwards" accommodations - the other treats the $55K SUV buyer like an $18K Cruze buyer.

I wouldn't suggest your dealership treats customers badly, is in poor shape, or screws customers on service or warranty work. I think those days are largely gone. But GM (and Ford, Chrysler, Honda...) will increasingly demand top-shelf customer experiences.

Ask a Chrysler dealer who had to build a $1M Fiat showroom/service facility in order to remain a full-line dealership and have the opportunity to sell the repulsive Fiat 500...
 
#159 ·
We have taken a long hard look at our customer experience and are always trying to improve it we have Saturday service hrs a fleet of loaners offer pickup and drop off. Our store is old but in my opinion clean. I know many dealers still live in old days when we had a large market share and didn't have to go above and beyond to sell cars those days are over and expectations a greater than ever and we better evolve or fail. So as I have bitched and listened and heard what everyone has said I believe that the remodel will only help us in the long run even though I am sure I will get the u guys must be making a lot of money off me if u can afford to do this high dollar remodel.
 
#160 ·
I have bought my last two trucks from Matt. The dealership is clean and appears to be well kept. I have had good luck with the little bit of service the last truck needed. Him/someone has picked up my truck and brought it back when they were done. The building is "older" but so are most businesses up here with the exception of the big box stores. Nester's is also pretty well known in town for everything they give back to the community. I could see it having a reverse effect with people thinking they have too much money to waste on remodeling.
 
#161 ·
Valid point- but look at it from GM's point of view.


They are packaging an experience, that needs to be homogenous.

Remember when Harley dealers were often old buildings, or tin roof shacks, that appealed to the long time Harley customer for what they offered- personal service from people considered friends in that world.

When upscale buyers started fueling the Harley revival, HD told the dealers to clean up, sell clothing and accessories, or lose their franchise. It caused a lot of bad feelings among the traditional Harley buyer, but for the corporation it worked brilliantly as more people wandered through the dealer buying t-shirts and trinkets- often at a larger profit margin than selling bikes.


GM wants to attract buyers accustomed to the atmosphere in high end dealers, something that's hard to do in an out of date building.
 
#164 ·
I've been through Roscommon, but not totally famailiar with the area. It's your property, so if you don't see a good ROI I'll take your word for it.

Down here, image is everything. They just opened a new Porsche dealership in Eastpointe, you could buy every house on my street for the price of a new Porsche. Makes no sense to me, but someone feels they'll make money.
 
#174 ·
There will be plenty of diesel around though, lasts longer than gasoline. You're just going to have to filter it after it sits for a while, and what better to mow down zombies with than a big ass diesel truck, a Chevy Volt isn't going to last more than 3 or 4 zombies before the front end is all beat to shit.
 
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