Obama Administration Scratching GM’s Back
The Obama administration will be buying 101 Chevrolet Volts. Oh, and they’re also purchasing 10, yes 10, Nissan Leafs and a whole 5 Think City EVs.
Talk about your social engineering and crony capitalism.
The move comes to show the American people that the government is doing its part to try and “reduce our dependence” on oil. It also advances President Obama’s goal of having 1 million plug-in electric vehicles out on the roads by the year 2015.
Here’s the thing though, when compared against the Leaf, the Chevy Volt doesn’t add up. The Leaf costs about ten grand less than the Volt, uses no gas, produces no emissions (well, aside from those generated by plugging in to the power grid), and can travel 100 miles on a single charge, while the Volt can only travel 40, and then switches to a gas-powered generator. The Leaf and EV are incredibly similar. The Leaf also had 17,000 pre-orders in its first year, while GM only expects to sell 10,000 Volts (and so far has only sold 2,029). So, um, why choose the Volt over the Leaf?
I think the answer seems pretty obvious. The government bailed out GM, and the Volt isn’t doing too well when compared to other hybrids like the Toyota Prius, or electric vehicles like the Nissan Leaf. A few Volts would have been acceptable, but why 101 Volts and no additional Prius’? Both the Volt and the Leaf require $350 per month for a 3 year lease, while the Prius is about $200 per month for a lease.
The administration is expecting the switch to save 29,000 gallons of gasoline a year. With gas at $4 per gallon, this will save taxpayers $116,000 a year. BUT, you have to factor in the cost of these vehicles. Since the administration has decided to buy the most expensive of the 3 models in excess, which has an MSRP value of $41,000 (the government will no doubt get some kind of discounted price), this will cost taxpayers $4.1 million, just for the Volts, plus an additional $327,000 for the Leafs and $182,000 for the Think City EVs. This comes to a high-ball total of $4.65 million dollars – just for the cars. This doesn’t even include the cost for the 5 charging stations or the gas needed for all those Volts.
Wait! It will save $116,000 in gas a year! Well, those costs won’t be made up to the taxpayers for 40 years! None of those cars will be around that long, so how is this helping?