GM Inside News Forum banner
1 - 20 of 89 Posts

·
Super Moderator
Joined
·
20,962 Posts
Discussion Starter · #1 ·
http://www.autoblog.com/2008/05/26/gm-looking-for-volt-tax-break-to-bring-cost-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.
 

·
Premium Member
Joined
·
8,886 Posts
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.
 

·
Super Moderator
Joined
·
20,962 Posts
Discussion Starter · #3 ·
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.
 

·
Banned
Joined
·
6,921 Posts
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.
 

·
Registered
Joined
·
2,882 Posts
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.
 

·
Registered
Joined
·
7,316 Posts
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.
 

·
Registered
Joined
·
69 Posts
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
 

·
Registered
Joined
·
212 Posts
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.
 

·
Registered
Joined
·
1,943 Posts
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).
 

·
Registered
Joined
·
6,040 Posts
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.
 

·
Registered
Joined
·
31 Posts
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.
 

·
Registered
Joined
·
776 Posts
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.
 

·
Registered
Joined
·
1,700 Posts
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.
 

·
Registered
Joined
·
10,431 Posts
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.
 

·
Registered
Joined
·
1,700 Posts
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.
 
1 - 20 of 89 Posts
Top