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Click on the above image for a high-res gallery of the Volt Concept

With both hands extended, General Motors has asked Detroit City Council members for tax breaks to ensure the highly-anticipated hybrid electric-powered Chevrolet Volt will be built in their city. This news comes on the heels of GM asking Congress for a tax break to ensure the price remains near $30,000 when it arrives in showrooms in 2010. Enough already. Stuck in the turmoil of a $38 billion loss last year, pending job cuts, UAW strikes, and in the midst of an economy favoring fuel-efficient vehicles (as pickups and SUVs roll down the assembly line), GM is scrambling to survive. Whether it arrives as a hybrid, or in all-electric versions, the Chevrolet Volt can't come to market soon enough... regardless of who GM panhandles.

[Source: The Detroit News]



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  • 63 Comments
      • 6 Years Ago
      Why not, it is a far better investment than building a new stadium which seems to be the political class's favorite way of frivolously spend tax dollars.

      Detroit needs the jobs, it needs the plant, and it needs the possible halo this car offers. They would be fools to not consider it. Then again, considering their recent political problems they might not recognize the golden goose
      • 6 Years Ago
      The power grid may have blackouts this summer and electric cars are on the horizon.
      • 6 Years Ago
      'Honda and tax incentives'

      'Honda recently decided on a site in Indiana for its new North American auto assembly plant over sites in Ohio and Illinois. Indiana offered Honda generous incentives of EDGE tax credits, training assistance, and real and personal property tax abatements totaling up to $41.5 million. In addition, the state will provide infrastructure support for water, wastewater, and road improvements of approximately $44 million. This offer was generous relative to packages that have been offered lately by northern states to woo automotive plants. Did the incentives swing the deal for Indiana? And how can states hope to recoup these upfront costs and revenue losses? More importantly, is society well served by such raw-knuckled competition among states for production facilities? The answers are not definitive, but, though often condemned, the use of fiscal incentives may not be such a bad thing.

      Large offers of this nature have become commonplace.'

      http://midwest.chicagofedblogs.org/archives/2006/07/honda_and_tax_i.html

      Every company gets tax incentives to make big investments. Everyone. Including Honda, etc.

      Autoblog:
      Stop using stupid stuff like this to highlight your irrational hatred toward GM.
        • 6 Years Ago
        wow, you call 85 million an incentive when Honda is investing 1.4 billion to make the plant in Indiana?
        What do you want Honda to do, build freeways and roads in the middle of nowhere? Public infrastructure has always been public.
        I cant recall any company spending billions building a factory and also powerlines and roads and bridges and schools, and supermarkets and courthouses and banks and etc in a place where there was nothing before!
        • 6 Years Ago
        Thank you man, I'm glad someone finally brought up some evidence that this is common practice and it isn't b/c "GM is scrambling to survive".
        • 6 Years Ago
        2004m3driver, it's called impact fees. I build a house, I pay impact fees. I build a subdivision, I pay impact fees. In laymen terms, if I build a two hundred home subdivision or a shopping mall the impact fees goes toward widening roads, stop lights, flood control, enviroment control and a whole lot more. When the impact fees are waived and TIF advantages are in play, guess who pay them? We the taxpayers. Ask anyone in San Antonio how the local government screwed the taxpayers just to lure in the Tundra plant.
        • 6 Years Ago
        I didn't say $88M is a huge incentive. This article doesn't say GM wants huge incentives either.

        All big companies get incentives. Why? Because they can. You would too.

        Honda, Toyota, etc., all those other companies that are clearly going out of business because they are incompetent like GM also get incentives.
        • 6 Years Ago
        It is a big incentive for Indiana because now they can tax the income of the employees that work at the fancy new plant. Plus the with more jobs comes more employees and other business will open up to accommodate the new influx of population. Which equals even more taxes. Detroit is already filled with plants no? Why don't they just stop laying people off and reopen their plants like before.
      • 6 Years Ago
      $40,000? Can they be serious?

      Our country is in the midst of an economic contraction, real incomes are withering away, and GM expects to beat the Prius thing with a $40,000 gas-saver?

      Don't bother, GM. Just quit the project altogether.

      Good-looking, reliable, cool-to-be-seen-in, fuel-efficient vehicles. Why can't you figure this equation out?
        • 6 Years Ago
        The average new vehicle sale price is in the mid 30-something area. $40K for something like the Volt is not out of the question, especially when green cars are becoming such a status symbol of late. Being that the production will be limited to start with there will be plenty of buyers.
        • 6 Years Ago
        I spend less than 3K per year on gas. My Outback cost me 21600, so I would need 6 years to make up the difference, not counting the higher electricity bill. All this with $4+ gas. In all honesty, I spend about $2300 in gas with $4.20 per gallon, so it would take 8 years, not counting the electricity bill to make up for the difference.
        • 6 Years Ago
        @ torrent

        You'd have to drive 100,000 miles to pay off a $40k car vs. a $20k car that gets 20mpg @ $4/gallon.
        • 6 Years Ago
        I was curious about this myself. $40,000 is is pretty much out of everyones price range. Sub 25k and under is the current sweet spot because everyones slowly going broke. By the time this thing comes out everyone will be buying sub 20k cars to offset gas prices.
        • 6 Years Ago
        I'm sure within a couple of years, owning the Volt would save you about 40,000 bucks AKA the Volt will pay itself off.
        • 6 Years Ago
        That's funny. I was in line at lunch today and a guy behind me said he put his name in for a Volt today. Honestly, he seemed a bit out of touch in that he though he'd be getting one soon if he did. But either way, this guy has $40K to blow on a car, trust me.
      • 6 Years Ago
      The more time that passes...

      the worse the Volt's prospects sound.

      Maybe a 4 year moratorium on executive salaries and bonuses might get this puppy to market at a reasonable price?
        • 6 Years Ago
        When a glass is half full for you it is half empty. Why would you make such a statement? GM is coming out with a new technology and is making no false claims related to it, but you are there to shoot it down before giving it a chance. Why don't you say something that's more intelligent? Then, you might impress someone.
      • 6 Years Ago
      What's wrong with GM asking for a tax break? Foreign auto makers ask for, and have received, massive tax breaks to locate their plants in particular states. Why should an American auto maker incure your wrath for requesting a level playing field with the foreign competition? Strange attitude.
        • 6 Years Ago
        I believe this also violates NAFTA.
        • 6 Years Ago
        GM already gets those tax breaks. Foreign automakers make it here so they can ease the import taxes and be more American. GM wants special treatment for building it in an already industrial Detroit and to have an advantage over its competitors. I don't think the Prius gets special treatment than the other Hybrids. But honestly, I don't care. If this works, I am all for a cheaper Volt.
        • 6 Years Ago
        non-federal tax breaks do not violate NAFTA.

        Subsidies do (but that can be worked around too) and federal tax breaks do.
        • 6 Years Ago
        Sam, I agree with you totally. Perhaps it is ok with this idiot writer when other automakers create public competition between southern states. I hate that sort of thing and of course the japanese companies are the true experts at it.
      • 6 Years Ago
      Hope GM doesn't do to Detroit what it did to the CAW.
        • 6 Years Ago
        You should watch the movie Roger and Me.
        • 6 Years Ago
        Exactly. If Detroit makes an agreement they better get job guarantees in writing.

        For those that don't know they swindled the Ontario government out of money and the CAW out of concessions to keep open the plants in Ontario. The plants that they have now turned around and closed one by one. GM's word means nothing and with the way they have treated my home province of Ontario I would never buy one of their cars again.
        • 6 Years Ago
        At least to see the Rabbit Woman.
        • 6 Years Ago
        Nothing is iron clad. Things change. GM should be stuck with producing cars at plants that don't make sense when conditions change?

        SUVs are on the decline and the Canadian dollar is on the rise. Canada isn't nearly as cheap a place to do business as it was before, especially for Americans.
        • 6 Years Ago
        "You should watch the movie Roger and Me."

        Why? Because M. Moore's version of the truth is so much more interesting then what really happened?
      • 6 Years Ago
      Anyone else think the government should give tax cuts to all the american car companies for hybrids and high fuel economy cars. Why stop at GM. Give Ford and Chrysler ( are they still american or did they sell them off again) some money too. Why do we have to waste a billion a day on a war thats raising gas prices and giving the rest of our money to the chinese.

      All that being said Im still a GM guy and currently hope to buy a volt in the future as my daily driver.
      • 6 Years Ago
      The power grid may have blackouts this summer and electric cars are on the horizon.
      sbagz
      • 6 Years Ago
      ok ...so at 40 grand its expensive.... as one poster put it.. as more get built, the price will come down..... the question is.... who will be the first people to put down 40k knowing that in 3 years youll be able to buy one for half that price....
        • 6 Years Ago
        @sbagz
        If the supply is short enough, the pricing makes sense. You think Tesla Roadsters won't get cheaper later? And yet they've sold out all announced production in advance right now.
        • 6 Years Ago
        @sbagz
        I guess I didn't make my point clearly.

        People (like me) will buy it just so they can stop buying gas. Even if it doesn't make financial sense.

        Yes, this isn't sustainable with large production levels, most customers won't put up with that. But as I said, if the production levels are low enough, they will find enough buyers at this price.
        • 6 Years Ago
        @sbagz
        @why not
        This is not an all electric sports car. This is suppose to be the next wave in super efficient daily drivers. It better get 80mpg for 40k and drive much better than a cobalt. If the production model looks like that it will have that one advantage. But I doubt the price will go down in the first 3 years. Look at the Prius. Did it go down in price significantly at all ever?
      • 6 Years Ago
      Sure, Toyota, Honda, Nissan, Hyundai, etc will swoop in and save these people. They will save them the same way that Walmart swooped in to small town America and killed the small business owner, replaced the all the product on the shelves with low grade Chinese products, and made sure no one works more than 32 hours a week so the employees can't get health care.

      Good thinking; Dumb A$$
        • 6 Years Ago
        Dude, I was being sarcastic.
      • 6 Years Ago
      Tax breaks are common as are low interest economic development loans. Two of my stores got tax breaks or credits when I opened them. There are also incentives for hiring in the local area.

      Nothing new here, you just generally have to ask if the breaks are there and apply for them.
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