$250k Chevy Volt subsidy claim bogus says TheStreet.com
Yesterday the Mackinac Center for Public Policy posted a statement claiming that each Chevy Volt is subsidized to the tune of $250,000 or more. That's caused a cluster of blog posts trumpeting this as if it's a failure of the Obama administrations green technology program, but not so fast says an article on TheStreet. Instead the Mackinac Center's analysis is overly simplistic and downright absurd.
The Mackinac Center's James Hohman identifies a $3 billion figure as the total amount of "subsidy" going to GM and other companies to produce the Chevy Volt. What they're calling "subsidies" are the loans and grants awarded to GM, and several other companies, by the Federal government and several local governments. Some of the awards went to GM for the factories directly used to build the Volt, and some to other companies building factories for electric car battery packs and other parts. For example Compact Power Inc, the U.S. subsidiary of Korean battery manufacturer LG Chem, received a grant to help them build the factory which manufactures the battery cells used on the Volt. GM's assembled the battery packs in their own factory, with Compact Power only supplying the cells. The extent of the Mackinac Center analysis is to name the $3 billion figure derived from adding up the total figure for all grants and loans they could find, then divide by the 6000 Volt's that have been sold.