GM and the Chevy Volt turned up three “7s” on the Congressional slot machine. First, automakers got the $25 billion in low interest government loans. Second, the Wall Street bailout will likely help the beleaguered auto industry. Third, plug-in tax credits have now been signed into law.
The now passed by the House and signed by Bush $700 Billion Wall Street bailout bill had a few congressional “sweeteners” in it to help get it passed after failing for the first time in the House earlier in the week.
Sweetest for future Volt buyers is what’s called the Transportation and Domestic Fuel Security Provision.
This provision provides a tax credit for buyers of plug-in electric vehicles. It provides a base of $2500 plus an additional $417 per kwh for batteries greater than 4 kwh. For the Chevy Volt, that works out to $7500 per car, a number GM had lobbied for.
The credit will be applied to the first 250,000 plug-in cars sold in the US and will be phased out to 50% for the following two quarters, and 25% for the two quarters after that before ending. The total cost of the credits will be $758 million.
OK maybe its all money Uncle Sam really doesn’t have, but the odds look better now for GM and the Volt to thrive. And your Volt just got significantly cheaper.
Long live the USA, GM, and the Chevy Volt.
See Section 30 D. of the Bill
This entry was posted on Friday, October 3rd, 2008 at 12:51 pm and is filed under Financial, Politics. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.