Volt: Refund Policy Allows For Tax Credit Abuse and Other Issues


General Motors (GM) provides a 60-day money back policy for all Chevy models.   So if you buy a Volt you can claim a $7500 federal tax credit.  Then 59 days later, return it and get your money back.  But, you may get to keep the tax credit.  According to a posting by Mark Modica, the IRS tax form for plug-in vehicle credit does not have a minimum time requirement for the buyer to own their qualified vehicle.   Ok, so it is doubtful that anyone will buy a series of Volts in order to accumulate tax credits.  But this is just another glitch in the Volt epic.

So how is the Volt doing now as opposed to how GM felt about the Volt in the days before the first sales?  In a November, 2010 posting in WardsAuto the following was reported:

In 2012, the automaker plans to reach production capacity for the Volt at its Detroit-Hamtramck, MI, assembly plant here with about 45,000 units annually for U.S. consumption. Including export to markets such as Canada and China, capacity could reach 60,000 cars annually.

Well, they are missing the 2012 sales forecast by a wide margin.  Sales were not too good even when gasoline prices approached $4 per gallon earlier this year (2012). Will it get any better if the price of gasoline continues it’s current decline?

And in that same WardsAuto posting the following was reported:

General Motors Co. executives call the new-for-’11 Chevrolet Volt a key first step in the electrification of all its products, while also confirming long-held assumptions the car will not make money in the first years of production. However, the typical all-new vehicle program for an automaker averages $1 billion. Given its sophisticated technology, the Volt likely will cost much more to develop, build and sell.

It can’t be making money now if 45,000 units are just breakeven.  Somehow a lot of cars will have to be sold to amortize the $1 billion cost of development.

cbdakota

 

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One response to “Volt: Refund Policy Allows For Tax Credit Abuse and Other Issues

  1. Great article…maybe its time to get a volt lol. Jk but I do wonder if GM will make their money back eventually. Great twist on the taxes though.

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