Tuesday, August 11, 2009

Government Motors

Here's government logic when it comes to selling cars...........

GM started pre-production of the car in June is making about 10 a month. "Volt is becoming very real, very fast," Henderson said.

Henderson conceded the cost of building a Volt will be expensive, about $40,000 per vehicle. But he said the vehicle will qualify for a $7,500 tax credit, which will reduce the vehicle cost by that amount for consumers.

He also stressed that GM has not set the pricing for the Volt, and conceded the company may have to subsidize the vehicle. The goal: Make enough sales to move the Volt from "first generation" to lower-cost future designs.

"The cost of the vehicle in the first generation is high," he said.


Read the whole thing.........

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