Tags: electric | cars | Volt | Obama

IBD: Electric Cars Are a Flop Even If You Give Them Away

Friday, 09 Aug 2013 07:57 AM

By John Morgan

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Sales of electric cars like the Chevrolet Volt are a horrendous failure, but the federal government insists on pushing them on a reluctant public anyway, an editorial in Investor's Business Daily (IBD) maintains.

The reason is that politics have trumped economic sense, the newspaper stated.

"The green lobby wants more hybrids and plug-in electric cars on the roads. Therefore the president wants 1 million electrics humming around by 2015 — and the carmakers have to ignore market reality under pressure to do what the environmentalist-political complex demands."

Editor’s Note: Will This Video Get Obama Fired? See the Evidence.

Last year, General Motors lost nearly $50,000 for each Volt it built, IBD noted. GM recently announced it would drop the price by $5,000. Including a full $7,500 federal tax credit, but not some state tax credits, the new Volt price tag is $27,495, according to USA Today.

"Aside from those whose egos demand that they use their cars to scream out their moral superiority as environmentalists, and maybe a few enthusiasts who dabble in the technology, does anyone really want these electric cars? Their dismal sales numbers simply do not justify their existence," IBD said.

Sales of the Volt, the most popular U.S. electric car, amounted to barely more than half of GM's 45,000 in 2012. Ford sold only 685 of its Focus electric models, Mitsubishi sold only 600 electric cars and Nissan sold less than 800 of its electric Leaf models.

The higher-priced electric cars from upstart Tesla should be ignored in the sales equations, IBD said. "It makes a luxury car that appeals to the wealthy who buy them as toys. It's an outlier."

In a similar editorial, The Washington Times offered its own blistering input on electric cars.

"The Chevy Volt (i.e., the Obamacar) is a classic tale of top-down thinking, the story of subsidy, crony engineering and rejection by the market. Car buyers, always eager to buy something new, expected a peach and got a lemon. The Volt is the president's economic policy on four wheels," The Times stated.

The newspaper said the Congressional Budget Office estimates federal subsidies for electric vehicles cost the taxpayers $7.5 billion, and venture capitalists who received the monies were also supporters of President Obama's 2012 re-election.

Despite the federal outlays, Americans still are not buying the vehicles, The Times noted. "It's lonely out there in a car with a dead battery."

Editor’s Note: Will This Video Get Obama Fired? See the Evidence.

© 2014 Moneynews. All rights reserved.

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