The View From 1776
Tuesday, August 03, 2010
Obama’s hailing the new Chevrolet battery-powered, green automobile as evidence of success for his administration’s nationalization of the auto industry is ludicrous.
Government Motors’s new battery-powered automobile sells for an unrealistic$41,000, compared to other automobiles. Even to sell a hoped-for 10,000 units, the Federal government is having to give every buyer a $7,500 tax credit.
Based on its projected initial sales of 10,000 units, Government Motors’s investment to produce this green icon is approximately $1.4 billion per car. And that doesn’t include the $7,500 tax credit Obama’s green giants are giving each buyer, or the $50 billion spent by the government to bail out Government Motors and deliver control of the company to extortionate, socialist labor unions.
Nor does it include the approximately $751 million annual interest costs that must be imputed to the total investment at present corporate bond interest rates of 5.22%.