Monday, April 4, 2011

Why America, And GM, Are Broke!

Time for a little liberal government math! The Chevrolet volt, General Motors answer to the green economy, and President Obama's signature issue list price (MSRP) is $40,280.00 plus tax title and delivery charges. It's combined EPA fuel economy rating is 60 miles per gallon. After 90,000 miles it needs it's battery bank replaced to the tune of about $7,200.00. During that period of time it'll consume 1,500 gallons of gas to travel 90,000 miles. The government has decided in order to convince you to purchase this economy car, it has to ask the tax payers to rebate you a $7,500.00 tax credit. So for you to travel 90,000 miles, disregarding normal maintenance costs, (tires, belts, brakes, hoses, etc) your going to have....
Purchase price $40,280
Battery replacement $7200
Fuel cost @$3.50/ Gal. $5250
Federal tax rebate -$7500.00
Total investment $45230

In contrast the Ford Motor Company offers a vehicle for comparison they named the Fusion. The suggested retail price is $ 19,280.00 plus tax,tag, title, and delivery fees. A $21,000.00 dollar savings on the retail price alone! Maybe that's because the government didn't have to bail them out? Anyway, it's EPA fuel economy rating is 27 MPG combined, not quite as fuel friendly. The fuel to operate this vehicle 90,000 miles will be 3334 gallons, just a hair over twice as much as the Volt. It'll cost the consumer $11,669.00 to operate this vehicle 90,000 miles. No Federal Tax Rebate, no Battery bank replacement. If it does need a battery, we can expect to pay less than $150.00. So this total cost to the consumer is....
Purchase price $19,280.00
Battery replacement $150.00
Fuel cost @ $3.50/ Gal. $11669.00
No Federal Tax Rebate
Total investment $ 31,099

Difference in cost to the consumer to operate both vehicles 90,000 miles, $14,131.00, the Volt loses. That's after the Federal Government, (you and me), gifts the Volt owner $7500.00. Realistically, if the Volt had to stand on it's own, the cost to the consumer to operate this green technology would be a $21,631.00 difference, again the Volt loses. Is it a mystery to anyone reading this why they only sell 200 a month? Do you now understand with this type of financial logic in Washington, why this country is so far in debt? With the difference between the two vehicles, I could buy a spare Fusion, and put twice as many people to work at the Ford Assembly Plant. This would also generate more tax revenue, and lower the jobless rate. Here's another ditty, the extra fuel it takes to run the Fusion is taxed by the Federal, State, and Local Governments. Pssst, Washington, this generates twice as much revenue!!!!!

Wait, I forgot something! It also costs the Volt owner $2,000.00 to update the electrical system in his garage and install the charger for this car, add that to the bottom line. But wait, there's more..... How much greater is the Volt owner's electric bill? I didn't include that! How much coal does it burn to create the electricity to charge this green machine? Is the coal we burn cleaner than operating a modern day automobile engine for the same distance a charge gives the Volt? Want to bet the carbon footprint is worse for the coal?

Never step over a dollar to pick up a dime, (from the mind of Orrin Woodward).

God Bless!
Capt. Bill

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