New Analysis Shows Each Chevy Volt Costing Taxpayers $250,000
A new analysis by James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy, says that each Chevy Volt sold so far, may have as much as $250,000 in state and federal dollars in incentives behind it – a total of $3 billion altogether.
In the article by Tom Gantert posted on Michigan Capitol Confidential, it states that analyst Hohman looked at total state and federal assistance offered for the development and production of the Chevy Volt, General Motors’ plug-in hybrid electric vehicle. His analysis included 18 government deals that included loans, rebates, grants and tax credits. The amount of government assistance does not include the fact that General Motors is currently 26% owned by the federal government.
According to the Hohman, the Volt subsidies flow through multiple companies involved in production. The analysis includes adding up the amount of government subsidies via tax credits and direct funding for not only General Motors, but other companies supplying parts for the vehicle. For example, the Department of Energy awarded a $105.9 million grant to the GM Brownstown plant that assembles the batteries. The company was also awarded approximately $106 million for its Hamtramck assembly plant in state credits to retain jobs. The company that supplies the Volt’s batteries, Compact Power, was awarded up to $100 million in refundable battery credits (combination tax breaks and cash subsidies). These are among many of the subsidies and tax credits for the vehicle.
In all, Hohman said the Volt “might be the most government-supported car since the Trabant,” referring to the car produced by the former Communist state of East Germany.