Posted 11:54 pm Saturday, December 01, 2012
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General Motor's electric cars no one wants to buy
General Motors continues to defy the laws of economics and common sense – and we’re paying for its ongoing folly. The company, which is still largely government-owned, announced its producing another overpriced, underpowered electric vehicle — that nobody wants.
“General Motors is giving its Chevrolet Spark a jolt of electricity,” the Associated Press reported cheerfully on Tuesday. “An all-electric version of the mini-car will debut this week at the Los Angeles Auto Show. It goes on sale this summer in California, Oregon, Canada and South Korea, where it’s made. Other markets will follow.”
GM won’t say how far the car can actually go on a full charge — but hints it will beat Ford’s Focus sedan, which can toodle a total of 76 miles, before needing to charge again for about seven hours.
“The Spark EV will also be cheaper than most of its electric rivals, GM says,” AP adds. “Exact pricing hasn’t been revealed, but the car will start for less than $25,000 in the U.S. when a $7,500 federal tax credit is factored in. Like all electrics, though, the Spark is much pricier than its gasoline-powered equivalent. The gas-operated Spark starts at $12,245.”
That’s right — consumers will pay more than double for the illusion of being green. Even electric cars rely largely on fossil fuels, since most electricity in America is generated by either coal or natural gas.
That’s assuming they buy the car at all — and frankly, almost no one wants to.
“Despite a generous tax credit, the Volt lagged well behind GM’s sales goals this year, only selling 19,309 through October, well short of their total initial sales goal of 45,000 sold in the U.S. this year,” the Daily Caller reports. “Recently, Reuters reported that GM lost up to $49,000 on each Volt it builds, an estimate GM has disputed. In September, GM announced a temporary suspension of Volt production following weaker than expected annual sales.”
“The Spark EV will also be cheaper than most of its electric rivals, GM says,” AP adds. “Exact pricing hasn’t been revealed, but the car will start for less than $25,000 in the U.S. when a $7,500 federal tax credit is factored in. Like all electrics, though, the Spark is much pricier than its gasoline-powered equivalent. The gas-operated Spark starts at $12,245.”
That’s right — consumers will pay more than double for the illusion of being green. Even electric cars rely largely on fossil fuels, since most electricity in America is generated by either coal or natural gas.
That’s assuming they buy the car at all — and frankly, almost no one wants to.
“Despite a generous tax credit, the Volt lagged well behind GM’s sales goals this year, only selling 19,309 through October, well short of their total initial sales goal of 45,000 sold in the U.S. this year,” the Daily Caller reports. “Recently, Reuters reported that GM lost up to $49,000 on each Volt it builds, an estimate GM has disputed. In September, GM announced a temporary suspension of Volt production following weaker than expected annual sales.”
Nissan hoped to sell a whopping 20,000 Leafs this year, but hasn’t even sold 7,000, despite big government incentives.
The reasons are pretty obvious.
“Demand for electric cars has been anemic so far,” AP acknowledges. “GM and other automakers have fallen significantly short of EV sales targets, especially as gas prices have fallen. Electrics remain expensive, and drivers are concerned about getting stranded too far from a charging station. While the Spark is great for city drivers who need to fit into tight parking spaces, those drivers may not have garages or other spots to charge up their cars at night.”
So the cars are impractical to all but a few drivers, while the rest of us are footing the bill.
“According to the CBO, electric vehicle tax credits will cost $7.5 billion through 2019 and will have little to no effect on reducing gasoline consumption and lowering greenhouse gas emissions, at least in the short run — the ultimate goal of the tax credit,” the Daily Caller notes.
It’s time to pull the plug on government subsidies for electric vehicles. And it’s time for GM to start listening to buyers, not bureaucrats.
The reasons are pretty obvious.
“Demand for electric cars has been anemic so far,” AP acknowledges. “GM and other automakers have fallen significantly short of EV sales targets, especially as gas prices have fallen. Electrics remain expensive, and drivers are concerned about getting stranded too far from a charging station. While the Spark is great for city drivers who need to fit into tight parking spaces, those drivers may not have garages or other spots to charge up their cars at night.”
So the cars are impractical to all but a few drivers, while the rest of us are footing the bill.
“According to the CBO, electric vehicle tax credits will cost $7.5 billion through 2019 and will have little to no effect on reducing gasoline consumption and lowering greenhouse gas emissions, at least in the short run — the ultimate goal of the tax credit,” the Daily Caller notes.
It’s time to pull the plug on government subsidies for electric vehicles. And it’s time for GM to start listening to buyers, not bureaucrats.
