GM Looking for Volt Tax Breaks to bring Cost below $40k

[FenwickHockey65]

http://www.autoblog.com/2008/05/26/g...ost-below-40k/

GM is working hard to produce a game-changing electric vehicle for the masses, but the General's precarious cash flow situation, coupled with the high cost of development, is conspiring to the push Volt's retail price to around $40K at launch. In an effort to mitigate this particular issue, GM is lobbying Congress to bring tax breaks to Volt buyers, and company insiders say the breaks could be on the order of $7,000 per vehicle. GM is also working to insert the words "extended-range electric vehicles" in any legislation, to make sure any other vehicle with the Volt's capabilities can reap the same benefits.

[zete]

And that wording ensures it only applies to electric vehicles, as opposed to various hybrids that aren't really electric vehicles.

Let's hope it works out for GM.

[FenwickHockey65]

Yes, let's hope.
Let's see, $40k-$7k tax break, that's $33k. Still a little pricey, but at the rate gas is going up right now, I'd go for it.

[plane]

Our government should never help domestic manufacturers.

Did Toyota get any government help to build a Kentucky plant?
Did the Prius receive any government rebates?
Did San Antonio provide any funding or tax breaks to secure a now-useless truck plant?

GM just needs to suck it up and make do.

[GM-Joe]

Originally Posted by plane

Our government should never help domestic manufacturers.

Did Toyota get any government help to build a Kentucky plant?
Did the Prius receive any government rebates?
Did San Antonio provide any funding or tax breaks to secure a now-useless truck plant?

GM just needs to suck it up and make do.

Most likely, Yes, Most likely.

Consumers get rebates of $3150 on the Prius http://www.hybridcars.com/federal-incentives.html

And typically, local and state governments give corporations huge tax benefits to guarantee employment in the area. Being from Ohio, there is a lot of complaints about the Department of Development in Ohio for not securing the new Honda assembly plant which is being built in Indiana. Ohio lost out because there incentive package wasn't as strong as Indiana's. There are many complaints about this sort of business, because it tends to hurt other districts more so than the new one; high paying jobs getting replaced by less high paying jobs, as well as less part suppliers building components for said new vehicles.

[mbukukanyau]

Governments should get out of the business of subsidies

[2648562]

Originally Posted by mbukukanyau

Governments should get out of the business of subsidies

Jobs are being lost. Most people have only seen a smidgen of a wage increase in the last decade. Auto emissions aren't good for the planet the last I heard. And we're on the verge of an energy crisis. The Volt could be game changing. I don't know what to think of a tax break so large, especially for a corporation that will only find a way to squander and misuse it, but to make it you've got to spend it sometimes. And there are worse things our government could be "investing" in.

[milton112c]

If you think that the government should stop tax rebates than you have no idea what your talking about on this subject matter. Without tax rebates, there is NO incentive whatsoever to build any manufacturing plant in the US. Why pay heavy taxes when China or India has very low taxes AND cheap labor. The government needs to offer rebates so that we actually do have a economy left

[mbukukanyau]

tax breaks is one thing, tax rebates, is taking my money by Big government and giving it to big tobacco or big car

[logansowner]

Didn't we just discuss the Volt being under $30,000 last week? WTF happened to that?

[Aych Es Vee]

MEH, it really needs to be around US$25,000 for people to see the worth in it....
If its going to be 30k+, then it really needs to be G8 size or something.


How big exactly is the Volt?

[Rocket 88]

Originally Posted by logansowner

Didn't we just discuss the Volt being under $30,000 last week? WTF happened to that?

Inflation!

[FunkyPig]

Originally Posted by plane

Our government should never help domestic manufacturers.

Did Toyota get any government help to build a Kentucky plant?
Did the Prius receive any government rebates?
Did San Antonio provide any funding or tax breaks to secure a now-useless truck plant?

GM just needs to suck it up and make do.

Oh yes they do get help, in their home market.

[benroethig]

Originally Posted by plane

Our government should never help domestic manufacturers.

Did Toyota get any government help to build a Kentucky plant?
Did the Prius receive any government rebates?
Did San Antonio provide any funding or tax breaks to secure a now-useless truck plant?

GM just needs to suck it up and make do.

Toyota is a Japanese company and the Prius is designed and built in Japan (with a little financial help from Tokyo).

[CaptainDan]

Originally Posted by zete

And that wording ensures it only applies to electric vehicles, as opposed to various hybrids that aren't really electric vehicles.

Let's hope it works out for GM.

Actually, that wording ensures that the breaks would NOT be given to "mere" electric vehicles. Extended range electric vehicles are more than that. They include a generator (regular internal combustion engine) to extend the range of the electric vehicle. So (at least so far) the Volt would be the ONLY recipient of such a tax break.