Last Updated:April 23 @ 05:24 pm

Reagan: Chevy Volt - Solyndra on Wheels

By Michael Reagan

"I absolutely love my Chevy Volt."

That's what the smug guy in the TV commercial says when he's praising the virtues of his plug-in hybrid and boasting that he hasn't seen a gas pump in months.

You might love your Chevy Volt, too -- if you could afford to buy one.

The GM Volt, aka the Green Edsel, is not just an overly engineered, overly expensive, overweight and impractical car than runs on electricity and gasoline.

It's a Solyndra on Wheels. The Volt only exists because it's been so heavily discounted by GM and subsidized by the federal government.

So far the Volt has cost Government Motors about twice as much per car to develop and make than its sticker price, which is $40,000. On top of that savings, the consumer gets a $7,500 federal tax credit for being so green -- or maybe so naive.

Yet the Volt's ultimate price -- $32,500 for what is essentially an electrified and souped-up $17,000 Chevy Cruze -- is still so high that only those in the top 7 percent of all income earners will buy it.

The average per capita income of Volt buyers is $172,000 -- the income bracket that usually drives a BMW or a Mercedes.

In other words, the average American -- who makes less than $40,000 a year -- is subsidizing a bunch of rich people so they can hug themselves for saving the planet (by buying a car that runs for about 35 miles on electricity generated by coal-fired power plants before Exxon premium gas has to take over).

Despite these subsidies and low-cost lease deals, Volt sales so far in 2012 are 13,500, far below the 45,000 cars GM hoped to sell this year in America alone.

Experts say GM will have to sell about 120,000 Volts in five years to begin covering its development costs. Good luck, GM. I don't think there are that many celebrities in Hollywood who need a third car.

After Romney replaces Obama this fall, let's hope he'll pull the government plug on the Volt and concentrate on making us energy independent.

Killing the Volt and any other electric-car boondoggles would be a good thing, and not just because it'd save money the federal government doesn't have. The popularity of electric-propelled cars that raise miles-per-gallon averages has given some of our more "progressive" governments some dangerous ideas.

State and local governments worry that if gasoline sales decline they'll be deprived of billions of dollars in revenue from gas taxes that now are used to maintain roads or subsidize mass transit.

To make up for lost revenues from hybrids and electric cars in the future, Oregon and San Francisco already have been looking into the idea of charging drivers a tax per each mile driven.

Cars would be fitted with GPS navigation systems that track how far they drive. Then drivers would be billed accordingly -- about a penny a mile, depending on where and when you rack up the mileage.

Needless to say, this Orwellian idea came from Europe, and the Obama administration has been exploring it too.

So let's see what's going on here. The government greenies want you to pay extra to drive an electric car that's more fuel efficient, then they charge you for the miles you drive anyway?

What red-blooded, road-loving American driver wants a government GPS implanted in his car with some bureaucrat looking at it to see how many miles he's driving?

Not me. I own a Ford Expedition. I get 12.5 miles per gallon. I love it. When it gets too old, I'll buy a new one.

The government is going to get us one way or the other. I say, go out and buy the biggest damn SUV you want. Enjoy your life. Light a cigar. Step on the gas. And don't waste a watt on a Volt.

---

Copyright ©2012 Michael Reagan. Michael Reagan is the son of President Ronald Reagan, a political consultant, and the author of "The New Reagan Revolution" (St. Martin's Press). He is the founder and chairman of The Reagan Group and president of The Reagan Legacy Foundation. Visit his websites at www.reagan.com and www.michaelereagan.com.

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23 Comments

  1. middlegroundComment by middleground
    September 17, 2012 @ 11:27 am

    Those government planners headquartered in Chicago think electric energy comes free with every electric plug you install. Never mind the coal-fired electric plants or the hydroelectric dams, just install a plug on the wall and run that 2/3 inch cable to your car so you can get a “free trip” to the store in your $40,000.00 volt with its throw away battery.

    The Volt is a Barnum car and those that think this is America’s solution to saving the planet are truly those to whom the P.T. Barnum quip applies. Get real, windmills, corn alcohol and solar panels are expensive except for use in exotic places. For the next 25 years the only economic solution is fossil fuels, but fusion-power generated electrical energy could become the source of the future. Knowing this why then are we cutting back our nation’s contribution to the fusion energy consortium?

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    • pistol packing mamaComment by txgoatlady
      September 17, 2012 @ 12:54 pm

      I keep wondering why people believe that electricity is free and if they bother to think of where it comes from. They must believe that electricity is pooped out by unicorns with no pollution involved in its creation. Idiots.

      Also, 35mpg is the best you can get with it? You can buy a Prius hybrid for a lot less and get better gas mileage. And as a bonus, the Prius has a proven track record.

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  2. therightdirectionComment by therightdirection
    September 17, 2012 @ 11:29 am

    You are WRONG. Trillions of US wealth has been transferred to foreign countries for oil. We still spend $25 to 40 BILLION PER MONTH for foreign oil. I have tested a Volt and it is awesome and am shopped around comparing lease offers. The Volt is very competitive and offers a 27 month lease plus I save a lot of money on gas. If you care about solving problems like our debt, national security and jobs then it is stupid to drive a gas guzzler while importing the USA is paying billions per month for foreign oil. You are an apple that has rolled far from the tree……..

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    • pistol packing mamaComment by txgoatlady
      September 17, 2012 @ 12:57 pm

      Are you willing to pay the actual cost of the car? I can’t even afford a $40,000 car so why should I be expected to subsidize your good feeling? I grew up in Midland, Texas. There is plenty of oil in our own country. We don’t have to prop up foreign regimes by buying their oil. We can produce our own if the idiot environuts will get out of our way.

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    • middlegroundComment by middleground
      September 17, 2012 @ 3:18 pm

      We have more than 20% of the World’s proven coal reserves, so this administration wants to stop its use in this country so that it can be shipped to China. Our nation practically floats on oil available by fracking methods, so this administration wants to use the EPA to shut down this source of oil and natural gas. Much of our nation’s natural gas is on federal lease land, but try to get a lease to explore and produce. Good luck with your efforts, and provided you can wade through the various governmental demands and environmental lawsuits by people who wouldn’t know a completed gas well if they were standing next to it, we continue to import product and listen to political leaders who are spinning a web of lies about energy and pollution by what they call “green house gas” which is mostly water vapor and carbon dioxide that is used by plants to convert sunlight to chemical energy. When plants die and if they are buried, heat and pressure may turn them into useable energy in the form of coal.

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    • canada3dayerComment by canada3dayer
      September 18, 2012 @ 12:29 am

      Try not to hurt your arm patting yourself on the back so hard there, Zippy. an electric car is fine and dandy IF: you can afford it (not me), you don’t drive long distances or extended time periods (again, not me), you live in a big city and that’s the only place you drive (still not me), you aren’t doing ANY towing (DEFINITELY not me!). hmmm, let’s see, is an electric car for me at all? nope, believe I’ll stick with my big ole F-350 crew cab dual rear wheel diesel pickup truck. which, BTW, in a fight with your Chevy Volt, would WIN big time.

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  3. winkvoltComment by winkvolt
    September 17, 2012 @ 12:18 pm

    Stop politicizing the Volt. It’s not GM’s fault that Obama was elected and took over the company. I leased a Volt and got rid of a BMW not to save the planet but to survive the Great Recession and the stupidity of politicians on both sides of the aisle! I no longer spend $100 a week for a fill up and that covers the lease payment. I don’t pay gas taxes to the State of CA general “welfare redistribution fund” either. And I’m starving Exxon and the Middle East whack jobs of oil revenue to make IED’s to kill our soldiers. If you recall, that was the 9/11 Commissions recommendation. Revenge is best served cold!
    On this one, I’m afraid I have to agree with the aforementioned comment by “therightdirection” that you have rolled far from the tree… And I’m a contributor to the Reagan Library!

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    • PATRIOTComment by PATRIOT
      September 17, 2012 @ 1:12 pm

      You are saving money on gasoline now but what will happen when you have to replace the batteries? Chances are you will lose much of what you originally saved on gasoline. Time will tell. I will not spend my money on unproven technology and I hope your Volt works out for you.

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  4. pistol packing mamaComment by txgoatlady
    September 17, 2012 @ 12:59 pm

    I guess the GM execs have nothing better to do than patrol the internet for negative comments about the Volt and suddenly sign up for forums that they have never contributed to before in order to defend their overpriced piece of junk.

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    • therightdirectionComment by therightdirection
      September 17, 2012 @ 2:30 pm

      Not a GM exec or anything to do with the auto industry. Carpet industry in Georgia. Piece of junk? Every American whether you agree with the idea of a Volt or not should be very proud of the incredible technology that was developed for the Volt HERE IN AMERICA by Americans. We need to bring back our manufacturing and our ability to innovate industrial manufacturing. Volt is a real accomplishment compared to decades of same old while others took the lead which led the crisis in the US auto industry.

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    • PATRIOTComment by PATRIOT
      September 17, 2012 @ 3:36 pm

      The Volt is a real accomplishment. A real accomplishment that the average American does not want and could not afford if it was not heavily subsidized by the federal government. The average American would really like for our country to become energy self-sufficient by drastically increasing our production of oil until technology can bring us dependable and practical alternatives. Present Volt technology cannot compete with gasoline/diesel powered vehicles. Volt technology is driven too much for environmental extremist reasons, pushing this technology into the market place too fast to be practical.

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  5. newrepublicanComment by newrepublican
    September 17, 2012 @ 1:09 pm

    If the VOLT is such a compelling cost saver then why would it require the US taxpayer to subsidize it’s development and sale price? I maintain that simple economic principles will deliver the most economical solution to the consummers … use up the oil in the ground as fast as possible, open all sources of that oil, and watch American ingenuity solve the energy challenge with all sorts of inventions as the supply of oil begins to decrease … over the next 100 hears or more. The market will choose the winners and losers and american busineesses will be glad to produce the products and the infrastructure AS IT IS NEEDED by the consummer. Central planning fails EVERY TIME it is tried. Get educated!

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  6. Mort_fComment by Mort_f
    September 17, 2012 @ 1:55 pm

    We have had hybrid vehicles for a century.

    A classic is the diesel-electric submarine. !0,000 miles on diesel, 100 miles on the equivalent volume of batteries. And don’t forget about the components in battery technology, lead, cadmium, mercury … all on EPS lists as hazardous. Or lithium, which can violently self destuct.

    There was a big push for gas turbines. They can use any fuel known to man. Problem of course is the GT needs exotic metals to perform efficiently. Fine if you are talking million dollar vehicles, but totally uneconomic for your personal vehicle.

    The internal combustion vehicle provides individual independence, and is eminently suitabele for distances approaching several hundred miles. It does run into real problems in the urban environment, pollution, gridlock, and parking are just a few. But many cities, both here and abroad, are easing one of its problems by banning automobiles, or at least severely limiting their usage in the city. And providing large parking areas outside the city, with efficient transportation into the city.

    The Volt is billed as a 40 mile vehicle on electric. Rather limits it to urban, and not even suburban, transportation. Years ago, we, and Europe, made good usage of an electric, urban, transportation device. It is called the trolley car. And many trolley car systems were built using rubber tires that did not use railroad tracks. Of course, even there, electricity is not free.

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  7. therightdirectionComment by therightdirection
    September 17, 2012 @ 2:22 pm

    Remember that every time you go to the pump you are sending your money to another country. Plug into electricity and the money stays here and creates jobs. Is that not important to you? Someone suggested Prius. Really? 100% made in Japan, parts, assembly, everything. Volt is made in the USA employing Americans. Is not that important? And think of the technology being developed in the USA by Americans instead of China. Is that not important you? Lease the car and the issue of the battery is gone as it is under warranty for the term of the lease.

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    • Mort_fComment by Mort_f
      September 17, 2012 @ 2:35 pm

      Of course those who are selling leases, like insurance companies, are all philanthropies. Leases only make economic sense when the lessee can susidize his lease with government supported tax writeoffs. Another assist to the middle class, who are not in a position to avail themselves of those tax writeoffs, but will pay more through the nose.

      BTW, last week, GM announced it will be transferring Cadillac production to .. guess where? .. China. As well as Volt technology.

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  8. therightdirectionComment by therightdirection
    September 17, 2012 @ 5:34 pm

    To Patriot:

    The reality is America will spend billions a month on foreign for the foreseeable future as it has been for many decades. Why was not anything done decades ago? Were/when/how do you start to change when you know it has to change? It took years for Toyota to develop the Prius but it paid off for them as a success 100% made in Japan and left the USA in their dust. Talk is cheap and we have twiddled our thumbs for decades while others took the lead. Volt costs will reduce as it gains acceptance. The technology will be applied to other American cars. While we are sending billions a month to foreign countries why can’t we invest in American technology? Did we spend a billion, two billion, hundreds of millions. was it spent on Americans? I have several patents and if I had your mindset I never would have innovated and been successful. America should lead, not follow.

    The Volt is a real accomplishment. A real accomplishment that the average American does not want and could not afford if it was not heavily subsidized by the federal government. The average American would really like for our country to become energy self-sufficient by drastically increasing our production of oil until technology can bring us dependable and practical alternatives. Present Volt technology cannot compete with gasoline/diesel powered vehicles. Volt technology is driven too much for environmental extremist reasons, pushing this technology into the market place too fast to be practical.

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    • canada3dayerComment by canada3dayer
      September 18, 2012 @ 1:06 am

      no argument that the Volt is a definite accomplishment. but the technology has been around AND IN USE IN EUROPE to significantly increase gas mileage in vehicles in this country but the government WON’T ALLOW IT. now that make NO sense at all. for the short term, at least, technology should be focusing on improving what’s already there, and developing complete alternatives on the side. alternatives such as improved electric, hydrogen, etc. instead of forcing things on the American public that are more expensive and, ultimately, far more environmentally unfriendly than what they are purporting to replace. electric cars are great but face it, in this country they have a very limited scope.

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    • PATRIOTComment by PATRIOT
      September 18, 2012 @ 7:03 am

      To therightdirection:

      Your views are interesting but I am sorry to say that the Volt as built today will fail. This is America, not Europe and Americans will not purchase an expensive, basically experimental vehicle that cannot compeat in performance with gasoline or diesel powered vehicles. To sell these cars in any number will require an extreme cultural change which is not likely to happen. The Volt will have some application in metropolitan type commuting but not much more than that.

      You obviously have disagreed with my statements about this car and made it clear that you are smarter because of your patents and innovation. That being said, can you tell me honestly that any point I have made about the present Volt technology is wrong? I think not.

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  9. sirodComment by sirod
    September 18, 2012 @ 11:31 am

    I wonder what the increased cost of electricity is and why is the car so darned expensive. I would like to try it because it is American made, but it is way beyond my means.
    I don’t like obama, but he certainly did not build this car, the factory did so I don’t hold it against the car. Again, why is it so expensive. I would love to test it for them for a few years. Ha Ha :-)

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  10. americanprideComment by americanpride
    September 20, 2012 @ 4:42 pm

    With respect, I’d appreciate the opportunity to add this rebuttal.

    In fact I *do* love my Chevy Volt. I don’t earn anything close to the income Mr. Reagan mentions. With a modest $6K trade-in value for my 12 year old car, the $280/mo. Volt lease (for 36 months, 15,000 miles per year), plus the lack of the $225/month I used to spend on gasoline for my old Mercedes plus its heavy scheduled and unscheduled maintenance costs, along with the Volt’s lower auto insurance rate, the Volt saves me about half what I used to spend every month.

    The Volt’s driving experience is far far better. This is the best car I have owned (I’m 55). It is a pleasure to drive, and I am glad to support American vs. foreign jobs. As an experienced electrical engineer, I appreciate the attention to detail in the design of the Volt, and its quality of construction.

    The Society of Automotive Engineers agrees: Volt won the 2011 North American car of the year award and the European Car of the Year award.

    If you are in the market for an SUV or mid-priced luxury car, I urge you not to allow Mr. Reagan’s attitude turn you off from trying the Volt.

    I might remind Mr. Reagan that over the past 100 years these industries and technologies all had taxpayer/gov’t R&D investment long before they first turned a dime of profit, yet have since accumulated trillions of dollars in private sector profits and created tens of millions of quality American jobs. Should the taxpayer have passed on these ideas also, Mr. Reagan?–

    1. Aviation (stimulated by early military and mail delivery interests).
    2. The standardized Interstate Highway System.
    3. Nuclear power and nuclear medicine.
    4. Rocketry and spaceflight.
    5. Satellites for communications, GPS, remote resource sensing, weather forecasting, agribusiness needs.
    6. The integrated circuit.
    7. Computing.
    8. The Internet (originally the DOD’s ARPANET).
    9. Continuing subsidies to the fossil fuel industry.
    10. Continuing subsidies to the nuclear power industry.

    None of these were without missteps, failed trials, bankrupcies, even lives lost.

    Mr. Reagan, you might wish to acknowledge the long history and positive impact of gov’t investment and risk taking in advancing new American technologies, corporations, jobs, and the wealth of our great nation. Sure, sometimes rockets explode on the pad or in flight; sometimes early ideas and ventures don’t pan out. Sometimes ventures fail–one has to keep one’s eye on the ultimate prize. Isn’t American exceptionalism about pushing ahead anyway; isn’t it about accepting the risks and moving beyond the missteps, investing the time money and effort, and meeting the goal undetered? Mr. Reagan, aren’t these the defining traits of great American character and exceptionalism, and work ethic and pride? Isn’t this the Can-Do attitude that has always defined America? Isn’t it just as patriotic to think this way too?

    Compared to the ~20 MPG I got with the Mercedes, my 40 mile daily commuting fuel cost has dropped from around $8 (i.e., 2 gallons) to 72 cents where I live (i.e., 12 kilowatt-hours at 6 cents each), if I buy the power during overnight hours. That’s a fuel cost savings over 90%. Suppose you now pay $4 at the pump. Imagine it said 40 cents instead. That’s what I’m enjoying today, Mr. Reagan.

    But most days I make enough roof top PV solar power at home to avoid buying ANY coal-based power, Mr. Reagan. My car really is clean. Plus, many coal utilities are actively switching to natural gas, so e-vehicles are essentially getting cleaner.

    Mr. Reagan, if you calculate the rapid payback time of solar power–when it is used to avoid expensive gasoline purchase costs–you might change your opinion. Instead of a decade or more to break even, a solar PV investment pays off in just a few years when the electric power is used to avoid buying gasoline.

    Plus, my PV-sourced solar power has no inflation for the next 25 years, and no price volatility. How’s that compare to the past 25 years–and the future 25–of gasoline pricing and volatility? Getting tired of not knowing what a gallon of gas will cost next month, or the month after that? I no longer worry about this. After a couple more years, my “PV fuel” is free for the remaining life of the solar array. Those folks in the Middle East who hate us can go take a hike into their desert as far as I’m concerned. I’m using 100% domestic power. Isn’t that what we all agree is best for our future?

    The Volt is both a great drive and a bargain. It’s a great product for America and for American jobs. I hope the readership here won’t turn away from at least giving it a test drive.

    Here’s a closing thought. I can go into Target or Wall-Mart and in 20 minutes walk out with a Nokia cellphone that cost me nothing after signing up for a new contract. Or, I can wait, camped out in line for the next week, to shell out $400 for an Apple iPhone-5. Using your line of argument about the Volt and the Cruise, Mr. Reagan, you may argue that given that choice everyone will go to Target. Yet Apple is the most successful company in the history of the planet, with something like $115 billion in cash in the bank, and Nokia is almost broke.

    Perhaps, Mr. Reagan, price is not the only thing that sells a product. Perhaps it has more to do with engineering and design excellence, with the user experience, with the coolness factor, with the perceived value, and with the desire to support a better future for America that we hope to pass on to our children and to their children.

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    • Mort_fComment by Mort_f
      September 20, 2012 @ 10:16 pm

      Take a hard look at your list, almost every one of them was R&D to satisfy a military requirement. Government money, in those cases, was limited to satisfying that military need, not to ‘invest’ in civilian production. Even the Intersate Highway System was ‘sold’ on its need by the military.

      Integrated circuits? It starts with solid stae development by Bell Labs, only indirectly subsidized with Federal funds. Intel created the integrated circuit in response to a Japanese customer. It was quickly adopted by the DoD, especially for missile work.

      The entire field of satellite technology was a military development. When NASA came into the act, there were some satellites designed and built for primarily civilian applications. But those that were economically viable were turned over to private companies, with no further subsidy.

      One could write a book on each and every one of your list, but you will find that individual initiative is at the start. The government involvement occurs when some far-sighted military man sees an advancement of capability. Of course the ‘customer’ payment does pay for the R&D needed to improve the product, as well as to pay for its production, with a negotiated profit.

      One should consider government seed money if there is potential for a technological advancement. But that seed money should stop when production begins. At that point the consumer market is the only true judge of the worth of an idea, and the company can charge whatever the market will bear.

      If government seed money were to stop, would the VOLT succeed? I doubt it. The price is far too high for a glorified golf cart. There are few of even my local trips that it could perform as an electric. Forget about traveling any distance on a vacation. No, most of the way one would just be hauling a deadweight load of batteries.

      The better future I would like to see is a debt-free country, without myriad regulations and hoops to jump through that inhibit innovation. Think of the Wright brothers, there is no way that they could have been permitted to even try to fly in today’s world.

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  11. winkvoltComment by winkvolt
    September 20, 2012 @ 8:04 pm

    To Author “americanpride”

    Thank You! You sir, are a breath of fresh air… articulate, intelligent — thoughtful approach.

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    • americanprideComment by americanpride
      September 21, 2012 @ 2:36 pm

      You are most welcome. I appreciate your kind words and support.

      May we as a nation move beyond emotional rhetoric and discuss the pros and cons rationally and dispassionately, with mutual respect and civil discourse.

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