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

[sandles]

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.

Do you mean domestic or any manufacturers? Regardless, the government would be giving the buyer a rebate not GM. GM will probably retail the vehicle for a price that won't kill them and wait a few years for costs to decrease to get the price point at a more reasonable level for the average consumer. This rebate would just make it more in reach for an average person early on as opposed to having to wait 10 years. I doubt for 1 second that GM is going to knock 7gr off the price if they can't get the government to offer rebates. I seem to be missing how this is a bad thing. Besides, if the war is over by the time this car comes out, the government will have 2bil a week to spend on something else.

[CharlotteFirebird]

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.

Did you know that the Japanese government subsidizes every Japanese car made in Japan and sent to the US?

Did you know there is a tax on foreign cars sold in Japan that is split between the Japanese car makers?

Did you know that no Japanese car company is allowed to be 50% owned by a foreign company?

Heaven forbid that the US actually help an American company.

[YupYupYup]

Corrupt government bureuacracies squanders your tax dollars all the time...At least this would help a domestic manufacturer, even though in theory we should not give subsidies; the market should decide. The Japanese government has a very complex system of subsidies for its manufacturers that have always provided an unfair edge.

It doesn't take a brain to tax someone; it does take one, and some hard work, to make money that will be taxed.

[member12]

I wouldn't give them a tax break unless they are willing to show exactly how much it cost and sell it to each consumer at cost + a fee. I've read that they can do it for $35,000, then $30,000, and now $40,000. I don't believe them any more.

If that were the case, the government should do what they can to give significant tax breaks to GM buyers.

Isn't it just an EV1 with a li-ion battery and a gas motor? Running up to 80 miles on electric only....then on the gas engine.



And I still can't get over the fact that the Japanese limit ownership to 49% or below. Maybe should do that to our manufacturing oriented industries (re: companies that can switch to making trucks and planes for the military if necessary) and energy companies.

[YupYupYup]

Originally Posted by 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?

How do you know?

The Prius is not huge, but until recently sold at a premium. Still expensive for its class.

People will apy it...It is a game-changer with more value than a Prius. $30,000 U.S. dollars is cheap for a car in Australia.

[fullsizefan]

I think plane's subtle sarcasm has gone over the heads of folks once again...

[Aych Es Vee]

Originally Posted by YupYupYup

How do you know?

The Prius is not huge, but until recently sold at a premium. Still expensive for its class.

People will apy it...It is a game-changer with more value than a Prius. $30,000 U.S. dollars is cheap for a car in Australia.

I talking about what it should be priced in USA. Prius starts at low US$20k, so I really dont think the Volt should be more than US$30k. Especially for a little car.


In Australia, the Volt shouldnt be anymore than AU$35,000 - AU$40,000, imo.
The Prius here starts just under AU$40,000, and doesnt sell well at all.

[Whitesky]

If they can give money to the damn farmers they can give it to the automakers!

[tholland]

That $7k should be gone off the price in a few years once economies of scale are achieved... I think it would be a good investment to get the technology rolling.

[WishIhadatruck]

Originally Posted by logansowner

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

Exactly what I was thinking.

If this costs the consumer much over $30k then I question how well it will sell. They want it to become high volume but cars of that expense usually don't. Of course if gas gets to $5/gallon across the country then that will certainly encourage people to buy one. I'm perfectly OK with the rebate. I wouldn't want this project to stall and not happen.

[Ming]

Let's say it turns out to be close to a $35,000 purchase. Some people will pay that just to avoid the pain at the pump. But GM will still need a dual-pronged strategy that includes affordable, stylish and efficient subcompacts --- cars that get good fuel economy and save money up front with a low purchase price. As of right now, GM does not have a good enough selection of those sorts of cars for people to head to GM dealerships in search of fuel economy and savings. Again, Toyota and Honda stand poised to take more customers from GM who are just looking for something inexpensive and fuel efficient that has a good reputation for lasting and holding its value. These potentially lost customers are not looking for an expensive miracle car -- or a low-cost Chevy subcompact that GM has invested little in updating under the hood to keep competitive. They just want to know that when they buy GM's equivalent of the Civic or the Fit that it will not depreciate dramatically or be unreliable. GM has yet to prove itself in the eyes of the public that it really cares about making great small cars and is fully on par with Toyohonda on that front.

[skylark68]

Originally Posted by fullsizefan

I think plane's subtle sarcasm has gone over the heads of folks once again...

I agree! I heard a giant "wooshing" sound over a bunch of people's heads.



I think the U.S. would be silly not to offer an incentive for people to buy a Volt. This vehicle could very well be a game changer.

With the steady devaluation of the dollar, not too many people will buy foreign in the next few years anyways, they will be too expensive.

[KingElvis]

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.

But the thing is, Japan would never have built its own auto industry without protectionist trade policies.

For that matter, the US relied heavily on tariffs before the income tax - thereby giving a big boost to domestic makers of...anything.


Nationalism plays a role - a BIG role by creating home grown manufacturing.

There's no such things as a 'pure' economy. Remember it's not just 'economy' it's a "Political Economy."

[PhishPhood]

Originally Posted by CaptainDan

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.

And Ford would never let this 'proposal' get through. Ford doesn't have an E-REV but it probably will have some kind of PHEV. So as long as the tax break to the buyer doesn't exclude PHEVs, thus favoring only E-REVs, it will probably get through.

Do you think John Dingell, Mr Dearborn, will allow Ford to be shut out here? Not likely. If passed it will probably read something like all PHEVs and all E-REVs which is good for the entire nation.

[ptmeyer84]

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Originally Posted by Whitesky

If they can give money to the damn farmers they can give it to the automakers!

don't go there, buddy.....