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Biden, Obama, GM, the Volt

Today's news. It reminded me of something in my Inbox this week. ==========================

Vice President Joe Biden on Saturday credited the Obama administration's intervention for the American auto industry's recovery from "the brink of extinction" and pointed to Chrysler's early repayment of the federal loan that saved it from disaster.Biden also said that General Motors, which went through bankruptcy and has come back strong, announced in the past week that its Detroit Hamtramck factory in Michigan will run three shifts for the first time in its 26-year history.Biden,... credited the efforts of the Obama administration for the resurgence of the auto industry through its assistance.

From my Inbox;The Chevy Volt MUST NOT be allowed to fail! The "Dirty Little Secret Behind the Chevy Volt".... As Paul Harvey would say, And Now, The Rest of the Story............. Patrick Michaels is a senior fellow in Environmental Studies at the Cato Institute and the editor of the forthcoming Climate Coup: Global Warming's Invasion of our Government and our Lives, as well as the author of several other books on global warming. His Forbes column on the Chevy Volt is a case study in the nexus between big government corruption and big business rent-seeking. Michaels briefly recaps the well-known consumer fraud in which GM has touted the Volt as an all-electric mass production vehicle on the supposed basis of which its sales receive a $7, 500 taxpayer subsidy, which still renders it overpriced and unmarketable. Michaels notes that "sales are anemic: 326 in December, 321 in January, and 281 in February." There seems to be a trend here. Michaels adds that GM has announced a production run of 100, 000 in the first two years and asks what appears to be a rhetorical question: "Who is going to buy all these cars?" But wait! Keep hope alive! There is a positive answer to the question. Jeffrey Immelt's GE will buy a boatload of those uneconomic GM cars. Here the case study opens onto the inevitable political angle: Recently, President Obama selected General Electric CEO Jeffrey Immelt to chair his Economic Advisory Board. GE is also awash in windmills waiting to be subsidized so they can provide unreliable, expensive power. Consequently, and soon after his appointment, Immelt announced that GE will buy 50, 000 Volts in the next two years, or half the total produced. Assuming the corporation qualifies for the same tax credit, we (you and me) just shelled out $375, 000, 000 to a company to buy cars that no one else wants, so that GM will not tank and produce even more cars that no one wants. And this guy is the chair of Obama's Economic Advisory Board? But of course. Michaels includes this hilarious detail in his case study: In a telling attempt to preserve battery power, the heater is exceedingly weak. Consumer Reports their tests averaged a paltry 25 miles of electric-only running, in part because it was testing in cold Connecticut . (The [GM] engineer at the Auto Show said cold weather would have little effect.) It will be interesting to see what the range is on a hot, traffic-jammed summer day, when the air conditioner will really tax the batteries. When the gas engine came on, Consumer Reports got about 30 miles to the gallon of premium fuel; which, in terms of additional cost of high-test gas, drives the effective mileage closer to 27 mpg. A conventional Honda Accord, which seats 5 (instead of the Volt's 4), gets 34 mpg on the highway, and costs less than half of what CR paid, even with the tax break. The story of the GM Volt deserves a place in the Harvard Business School curriculum....but of course, it won't. It's a classic tale of the GOVERNMENT deciding what the public needs, not the marketplace. PS.- Even the guy who sent this to me missed part of the point. What is one of the reasons for this? Why to keep the UAW in business, because Obama owes them for his election. Starting to make sense yet?

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Immelt/GE/GM/THE Obama

Sounds like the very worst form of cronyism.

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and you only know what they tell you
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subject is about GM, not GE

totally off subject

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(NT) Nope
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What's so funny?

the truth?

IF you think it's about GM why did M_H mention Immelt and GE, and why didn't you notice it?

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Because the whole thing is

a "round robin" sort of event, or conspiracy and the two main characters are Obama's administration's bailout of GM and them capitulating under govt pressure (or being bought off) to building a car in numbers that few really want. There's also a difference in GE's not paying taxes in one year, because it has to do with overpaying taxes in previous years and writing off losses against gains this past year, justifiably resulting in no taxes paid for the year. For individuals there's a yearly limit on how much loss per year can be deducted from future years gains, unless they opt for a "mark to market" type of accounting, but that latter usually applies only to bigger investors. For corporations, since they are a business instead of individual investor, they use a "mark to market" approach which allows them to mark off losses against gains, but if losses are greater then they can apply those against gains in the coming years. That's the GE connection, and nothing really there concerning this event. The part that is significant in all of this relating to GE somewhat is Imelt's personal involvement with the Obama administration and suspicion that's behind GE's buying of so many Chevy Volts. The real action or collusion is between Obama's administration and GM.

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what's your point?

Is there something you wanted to make a point of from the video, or just some slam on Fox news?

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no answer?

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RE: no answer?

Yes, but none that would satisfy you.

So I'll let you satisfy yourself.

You make the next post, and I won't respond.

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Must not be allowed to fail but it is..........

at $41K who the hell would by one when Prius has a starting price in the mid $20K's?

Toyota virtually owns the technology with all the research invested in the past 10yrs.They already get royalties from Ford's hybrid.I'm curious to see what the Prius "plug in" does to the competition with it's Li-On battery when it debuts.

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