Good News/Bad News For GM's Volt

October saw the first time the plug-in hybrid Volt outsell the all-electric Leaf; Consumer Reports rates Volt owners the most satisfied, but the car's potential to catch on fire is being investigated, and the $7,500 EV tax credit is under attack.

2 minute read

December 16, 2011, 7:00 AM PST

By Irvin Dawid


It's a car fraught with paradoxes. Despite the vehicle being officially investigated by the National Highway Transportation Safety Agency for a potential lithium battery defect that causes the vehicle to catch on fire, Volt owners are so satisfied according to Consumer Reports that most forgo the free loaner car during the investigation. The car's nemesis is none other than a congressman who is also a GM dealer. Go figure....

"In October, the Volt outsold the electric Nissan Leaf for the first time since April. Through October, GM sold 5,003 Volts - and it is now almost certain the company will not meet its sales target of 10,000 in 2011."

Rep. Mike Kelly, R-Pa., who is also a (GM/Hyundai) auto dealer, said (Nov. 30) he wants Congress to end the $7,500 tax break for electric vehicles (and the 7,500 tax break for plug-in hybrids) . He said the Volt "has become the poster child of President Obama's failed green agenda."

Kelly noted the average annual income of Volt buyers is $175,000. [See Planetizen: Will President Obama's E.V. Tax Credits Only Subsidise The Rich?]

"In 2008, President George W. Bush signed into law a bill granting up to $7,500 tax credits for electric vehicles. In 2009, Congress expanded it from 250,000 industry-wide to 200,000 per manufacturer before it is phased out. The tax credit is estimated to cost at least $1 billion."

Thanks to Energy & Environment Daily

Thursday, December 1, 2011 in The Detroit News

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