Let's add the incentives up: $4000 from GM, $7500 from federal taxpayers, $2000 from may states. That comes to about $14,000 per vehicle and
GM reportedly is selling them for a large loss.
General Motors has announced a $4,000 rebate (or
$3,000 and a four year, zero interest loan from government-owned Ally
Financial) on the slow-selling Chevy Volt. The company had a choice
regarding how to deal with an excess supply of Volts that is growing
faster than demand. GM could have, once again, temporarily halted production until
inventory (currently at about a 6 month supply) came down to reasonable
levels. It instead chooses to lose more millions of dollars by spending
on incentives designed to manufacture demand that otherwise is
practically nonexistent.
The much-hyped Chevy Volt was originally presented by GM as a green
wonder-car that would be a savior for the company with sales expected in
the 10,000 per month range by now. Almost three years after first
hitting showrooms, the Volt now sees sales stabilizing at a dismal rate
of approximately 1,500 per month. That's roughly one Volt every two
months for each Chevy dealership.
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