General Motors, the financially strained U.S. automaker that absorbed billions of taxpayer dollars through the auto bailout, has secured a new deep-pocketed customer for its purportedly failed electric Chevy Volt: the Pentagon. The Department of Defense is seeking to make the federal government’s military operation more “environmentally-friendly” by reducing its use of fossil fuels with a conversion to electric vehicles.
The DOD plans to purchase 1,500 models of the Volt, which has been burdened with lethargic sales and mounting losses since the automaker launched it in 2010. The Marine Corps Air Station in Miramar, California bought two of the “green” vehicles in July, and another 18 more will soon be shipped to Joint Base Andrews in Maryland, where Air Force One is lodged.
The Obama administration has been a prominent advocate for the Chevy Volt, as the president himself pledged this year to “buy one and drive it myself … five years from now when I’m not president anymore.” Moreover, the government has offered a $7,500 tax break to bolster GM’s sales on the electric vehicle. However, the federal government’s spendthrift strategies have produced meager results.
Citing data released by the consulting firm Munro & Associates, Reuters reported Monday that “nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds.” Reuters noted that each one of the Obama-hyped vehicles costs upwards of $89,000 to produce, with a sticker price of less than $40,000. Further, the news agency reported,
Click here to read the entire article.