Quote:
Originally Posted by 1bad65
Not to get political here, but welcome to Government thinking. GM is coming out of bankruptcy and desperately needs to make money in any way possible. So the owners of GM, the Government, have decided it makes great sense to dump tons of money into a project they openly admit will result in a vehicle that will sell at a loss, which will actually cost the struggling company money.  |
The Volt is simply a product of government regulation. CAFE is forcing automakers to reach a MPG standard across their fleet and this is GM's response. It is forcing a company that just came out of bankruptcy to produce a vehicle that loses money, but to the government it serves a "greater good." I'm sure what the government is betting on is a market expansion of electric/hybrid vehicles if automotive manufacturers are forced to create fuel-efficient vehicles. However, they can't create demand for these vehicles. All in all, this will be just another failed attempt at government economics.