Faulty Study Pegs Chevy Volt's Cost to Taxpayers at $250,000 Per Vehicle

[ne_one]

Faulty Study Pegs Chevy Volt's Cost to Taxpayers at $250,000 Per Vehicle
Plugincars
December 23, 2011
by Brad Berman

A calculator in the wrong hands is a very dangerous thing. Case in point: Number crunching about the cost of the Chevy Volt by James Hohman, assistant director of fiscal policy at Michigan’s Mackinac Center for Public Policy. Despite having a degree in economics from Northwood University (according to the Mackinac website), Mr. Hohman conveniently neglects any notion of research and development costs being amortized over an entire product cycle. He takes the full amount of all public funding offered to support the Volt’s development, and divides it by the number of Volts sold so far. Hohman thereby declares that the Chevy Volt’s cost to taxpayers is up to $250,000 per vehicle.

Hohman’s calculation was first reported on Dec. 21, on Michigan Capitol Confidential, a website published by The Mackinac Center. The Mackinac Center describes itself as having a focus on economics that “draws support from market-oriented libertarians, moderates and conservatives.” The organization's website further declares, “We look forward to the day when the myths and fears of free-market capitalism are dispelled, along with the misplaced faith in a benevolent, omnipotent state.”

Mr. Hohman said, “This might be the most government-supported car since the Trabant,” referring to the car produced by the former Communist state of East Germany. But when appearing this Wednesday on the Lou Dobbs syndicated radio program, Mr. Hohman seemed to backtrack on the $250,000-per-Volt figure. First of all, he qualifies the 6,000 sales figure used as the divisor in his calculation. “I’m sure they’re going to sell more as time goes by,” he said. “I understand the people that actually bought them really enjoy them.”

Full article at link.

[osbornk]

I don't know that the true cost of the Volt can be calculated. You would have to calculate in the cost of the grants and subsidys to several suppliers in addition to the cost within GM as well as tax breaks and other things involved with all aspects of the Volt. Besides, there are some things you are better off not knowing.

[Hitman1970]

A moron with a calculator and bias is still a moron. Next.

[Ed753]

Sounds like he does back it down to $50K so that along with the $35K that the buyer pays about $85K?

[mbukukanyau]

both he the place he works and the schools he went to are rubbish. They did not teach him a single thing about intellectual honesty.

[vanshmack]

Hohman thereby declares that the Chevy Volt’s cost to taxpayers is up to $250,000 per vehicle.

Assume for a moment that this bogus figure is actually correct. With each sale, the cost drops, so even if it were true when this ass-clown did his study, it's certainly lower now, as more Volts have been sold.

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

What about the billions of yen in support the Japanese government gave to Toyota for hybrid development? The lousy Trabant may have been fully subsidized in East German Monopoly money during the Cold War, but it was a cheap project when compared to what Toyo got.

It's all a moot point, anyway: Everyone knows it was the Volga that got all the love from the Warsaw Pact elite!

[StormHunter77]

James Hohman, Anne Coulter, Glen Beck, Rush Limbaugh - a rose by any other name. Man, people will say anything to make President Obama's administration look bad (and I am an Independent). This is pretty low, though. The research and development behind the Volt are the most significant advance in automotive propulsion since the dawn of the combustion engine age. I'm a teacher in a state where the governor has come down hard on teachers, cops, and other public workers. By the same mathematics, I can state that I get paid about forty cents per hour per student I see every day. By those standards, I look like I practically work for free. You can make any numbers look good or bad through presentation. The fact that this guy is so well educated and still put this out is surprising. There is a radical right element that is just frothing at the mouth at anything President Obama does. I hate that the Volt has become their poster child for what's wrong with America, when it's actually everything that is right. It shows immense amounts of ingenuity and advanced thinking. It has brought automotive engineering to a new level. Sure, it's not perfect, but it's technology that will continue to get better every year (and cheaper). Besides, I am sure there were Republicans, Democrats, Independents, and every kind of race, color, and creed of humanity working in some way in the development, marketing, sale, and purchase of Chevy Volts. Any tried and true American should stand proud behind the Volt and everything is stands for. Heck, everyone in the world should be proud that we are trying something new to make the environment better for ALL.

[vanshmack]

James Hohman, Anne Coulter, Glen Beck, Rush Limbaugh - a rose by any other name. Man, people will say anything to make President Obama's administration look bad (and I am an Independent). This is pretty low, though.

I'm curious as to why Chris Matthews, Keith Olbermann, and Ed Schultz don't make your list. After all, they're just different sides of the same coin, and while they may not hate on GM like the folks you mentioned, they're anti-industry rants are just as dubious, not to mention all of the vile hate and wishes of death made against our previous president.

[smithrobs]

Yes, a fervent Beck / Limbaugh fanatic that I work with sent the original "Michigan Capitol Confidential" story to me yesterday. I tried to explain to him that the math was flawed, but he kept saying I was performing liberal spin. Same guy tells me that declaring yourself a centrist, moderate or independent is just being a lazy-fence sitter refusing to decalre a side before the impending civil war.

[2002 Caddy]

I'm curious as to why Chris Matthews, Keith Olbermann, and Ed Schultz don't make your list. After all, they're just different sides of the same coin, and while they may not hate on GM like the folks you mentioned, they're anti-industry rants are just as dubious, not to mention all of the vile hate and wishes of death made against our previous president.

The second that they make up crap about the Volt, they make the list... Why is it that so called fiscal conservatives are the first to prove that they can't use a simple calculator?

Why is it OK to prop up middle east oil, with lives and treasure, and it is not OK to spend considerably less to try and get off of it.

And while we all consider why these so called fiscal conservatives have so much trouble with simple math, lets also consider why they also have even MORE issues with an even older invention, called the CALENDAR. The Volt rebate was signed into law by a Free Enterprise Republican President in 2007 (as an extension to a 2005/6 rebate). Because HE SAID we were addicted to foreign oil! (in early 2006) The Volt itself was project managed by a Card Caring Republican Marine Corps Pilot starting in 2005/6. More problems with the pesky calendar...

Dom Giordano, who as the fill-in host for the Lou Dobbs show interviewed Hohman, said “I’ve renamed this the Solyndra-mobile versus the Chevy Volt.”

Hey Dom, when was the Solyndra loan guarantee offered? and by whom... Wow dude its called a freaking calendar, do you really think the American people are that stupid?

Its a shame that we can't run our cars from BS transparent straw-man arguments. If we could then these so called conservatives might have some use.

[vanshmack]

The second that they make up crap about the Volt, they make the list... Why is it that so called fiscal conservatives are the first to prove that they can't use a simple calculator?

Why is it OK to prop up middle east oil, with lives and treasure, and it is not OK to spend considerably less to try and get off of it.

And while we all consider why these so called fiscal conservatives have so much trouble with simple math, lets also consider why they also have even MORE issues with an even older invention, called the CALENDAR. The Volt rebate was signed into law by a Free Enterprise Republican President in 2007 (as an extension to a 2005/6 rebate). Because HE SAID we were addicted to foreign oil! The Volt itself was project managed by a Card Caring Republican Marine Corps Pilot starting in 2005/6. More problems with the pesky calendar...



Hey Dom, when was the Solyndra loan guarantee offered? and by whom... Wow dude its called a freaking calendar, do you really think the American people are that stupid?

Its a shame that we can't run our cars from BS transparent straw-man arguments. If we could then these so called conservatives might have some use.

Simple answer to your first questions: They aren't really fiscal conservatives. There's really no such thing as a fiscal conservative inside of government. Only those of us who have to run a household on a specific income are truly fiscal conservatives.

As for Solyndra, the Obama Administration APPROVED the loan guarantees, so I'm not sure why you're trying to shove the calendar in our faces. The Bush Administration reviewed the application, had some issues with it, and shelved it for BHO and his pals to consider. Show me what isn't true about that statement and provide links to support it from places NOT called The New Republic, Huffington Post, or The Nation!

[eaton53]

Pretty sweet deal for Volt buyers.
Well... not really.

[2002 Caddy]

As for Solyndra, the Obama Administration APPROVED the loan guarantees, so I'm not sure why you're trying to shove the calendar in our faces. The Bush Administration reviewed the application, had some issues with it, and shelved it for BHO and his pals to consider. Show me what isn't true about that statement and provide links to support it from places NOT called The New Republic, Huffington Post, or The Nation!

Not true, the Solyndra loans were signed in 2007 as part of a multi year deal by then President Bush...

In late 2007, Solyndra was one of 16 clean-tech companies deemed eligible for $4 billion worth of loan guarantees from the U.S. Department of Energy. Tesla Motors, the Silicon Valley electric carmaker, and Oakland's BrightSource Energy, a builder of solar-thermal plants, also made that list.

http://fefwww.istockanalyst.com/arti...86855/pageid/1

Swing and a miss. That article that states clearly that they had loan guarantees is not only not from one of your black list, (it is a right wing site) it is was ALSO dated BEFORE the election that elected the current President.

[johnstarnes]

I don't know that the true cost of the Volt can be calculated. You would have to calculate in the cost of the grants and subsidys to several suppliers in addition to the cost within GM as well as tax breaks and other things involved with all aspects of the Volt. Besides, there are some things you are better off not knowing.

Thank you.

[osbornk]

Not true, the Solyndra loans were signed in 2007 as part of a multi year deal by then President Bush...



http://fefwww.istockanalyst.com/arti...86855/pageid/1

Swing and a miss. That article that states clearly that they had loan guarantees is not only not from one of your black list, (it is a right wing site) it is was ALSO dated BEFORE the election that elected the current President.

Nope. The loan was approved in 2009. One of many articles is http://www.washingtonpost.com/politi...bQK_story.html