American Elephants

Ooops! General Motors Lays Off 1,300 Volt Workers by The Elephant's Child
March 2, 2012, 3:32 pm
Filed under: Capitalism, Democrat Corruption, Economy, Election 2012, Energy | Tags: ,

General Motors has temporarily suspended production of the Chevy Volt, troubled electric car, the company announced on Friday. They are halting production for five weeks, presumably to allow demand to catch up with inventory.  This means laying off, temporarily, 1,300 employees.

A GM spokesman said that production will resume on April 23. “We needed to maintain proper inventory and make sure that we continued to meet market demand.”

They’re getting lots of help. President Obama wants to raise the subsidy to $10,000 per car and make it an immediate price reduction instead of a tax credit of $7,000. President Obama also gave the Volt a vote of confidence in a speech to the UAW this week, and promised to buy a Volt “five years from now, when I’m not president anymore.”

California decided to allow the Volt to qualify for High Occupancy Vehicle (HOV) lanes, which also should help a little.And of course the price of gas should help.

If you remember, back when Obama was bailing-out the car companies instead of allowing the normal bankruptcy laws to operate, GM did not want to produce the Chevy Volt. They didn’t think it was ready for prime time, but marketing expert Obama insisted.

Sales in February were up a little from January. I’m not sure what the sales figures mean — are those the cars GM has sold to dealers, or are they the cars that have been purchased by consumers? Dealers have cut way back on their allotments, and are not seeing much enthusiasm in the marketplace.

GM has argued that the debate about the Volt has become too political. GM CEO Daniel Akerson told Congress “We did not develop the Chevy Volt to be a political punching bag, We engineered the Volt to be a technological wonder.”

The odds of the taxpayers being paid back for the bailout have not increased, but then you didn’t really expect that they would, did you.

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