Yesterday afternoon, the United States Senate approved a tax credit that provides up to $7,500 in discounts for buyers of plug-in hybrids – a type of vehicle that isn’t even on the market yet. Buried within a complex bill was a provision for buyers of plug-in electric vehicles that gives them a tax credit between $2,500 and $7,500 depending on battery capacity.
This could give General Motors the boost it needs for the upcoming Chevrolet Volt, which the automaker expects to be priced over $30,000. Many industry analysts have claimed that the Volt’s high price point, which is still unlikely to garner profits in for GM for the first generation model, will make it a tough sell. The Volt would qualify for the maximum $7,500 incentive.
The measure said that the tax credits would be phased out after the 250,000th plug-in electric vehicle had been sold. It provides a significantly higher credit than the provision buried within a House bill passed just a week ago.
09/24, 9:13 AM
posted by:
Mike the loser
GM is asking the taxpayer for handouts again?
09/24, 10:18 AM
posted by:
johnnycanuck
250,000 is not a lot of vehicles in the grand scheme of things. I just find it odd there seems to be this bias that all this hoopla has to do with the Volt and only the Volt. Nothing could be farther from the truth. I’ll be genuinely surprised if the Volt is even the first plug-in out of the gate, and whether it is or not I’d also lay odds that within a year of the first such vehicle coming to market there will be a half dozen more. GM gets the most attention only because their gums never stop flapping.
09/24, 11:32 AM
posted by:
Lariat Luxury Locomotive Liner No.3
A credit somewhere means a debit elsewhere…lookout American taxpayers it’s ankle grabbing time (again). Bigmouth Lutz has to run mama like the rest of the failures’ who chastise government and then use it to screw the taxpayer.
.
Lutz is an environmentalist—he recycles his own crap.
09/24, 11:42 AM
posted by:
neptronix
Oh man.. johnnycanuck, you are right. hopefully a plug in prius ( could be produced in a matter of months if toyota puts nose to grindstone ) does not steal chevrolet’s thunder.
This is a good move, but it definetely puts the pressure on. 2010 is a long way to go when japanese automakers have been practically ready for this for years.
09/24, 12:17 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Now, here’s some “real” news regarding the electric vehicle scene versus some whiny good ‘ol boy Lutz and his pandering crap: SSC ‘Going Green’ In New SuperCar Development
09/24, 12:47 PM
posted by:
A4
so is this going to get it under $30k?
09/24, 2:36 PM
posted by:
F3INT))AP3X
I think its a bunch of crap. The government is just offering this incentive because obviously they are afraid that people wont buy plug-ins up like they have been expecting. They are helping GM to get back in business in an indirect manner and as much as I would like to see GM in good standing I think it is folly for us the taxpayers to put more money towards this. If people are not buying hybrids and plug-ins as much as the government would like then oh well that is called business you cannot just throw money at the situation to grease the sales skids. I also think it is unfair to a lot of people who do their part to save the environment that these plug-in buyers get a tax credit just for buying one. I mean what about the guy who doesn’t drive at all but rides his bike into work, or the guy who takes the bus or train with a bunch of people just like him. These people that work hard and change their schedules and lifestyles just so that they can avoid using a car altogether are the ones who really deserve a break, not some yuppie who bought a Volt because he’s got “environmental awareness.”
09/24, 2:53 PM
posted by:
MercMark
It’s gonna be expensive because GM does not want to sell them since they lose money on them.
09/24, 3:12 PM
posted by:
yarddog82abn
A $7.500 tax credit, a $7.500 dealer mark-up, nice……
09/24, 7:02 PM
posted by:
Lariat Luxury Locomotive Liner No.3
What just irks me to no end is that the Volt could have stood on its own. Yes I give GM hell about it, but what do they do? They fold like wimps and in more ways than one declaring through what has happened that it cannot stand on it own. Even at its initial pricing there are buyers who would have rallied round it to embrace what it represents—this is a major deal in any product launch. But noooooooooooooo Lutz (the ultimate high paid whiner) can’t shut his effing mouth and let the Volt stand proud; top gun, my ass.
09/24, 10:03 PM
posted by:
simonc
Mike the loser
GM is asking the taxpayer for handouts again?
Wrong loser! GM isn’t asking for a “handout”. The 25 Billion deal worked out with The Big 3 was all part of the package agreed to with government last year for making the MPG higher. And they’re not giving them 25 billion, they’re giving them a low interst loan, unlike what Wall Street is getting.
09/24, 10:08 PM
posted by:
simonc
Also, the tax credit is no different then what Toyota and Honda customers buying hybrids are getting. What’s up with some of you guys? It doesn’t seem to matter what GM does, you guys just shoot them down.
09/25, 9:12 AM
posted by:
DrFill
The car that will benefit the most from this?
2010 Toyota Prius!
Will be the first plug-in hybrid on the market, and will cost around $25k
Who’d like a 50+ MPG car for $17500?
Volt looking at $33-35k MSRP.
$27500?
Those who are late do not get fruit cup.
DrFill