The Government Spends up to $250,000 per Chevy Volt Sale, but we choose GM’s Full-size Pickup Trucks

Posted by PITHOCRATES - December 24th, 2011

Week in Review

The Chevy Volt may not be flying out the door but GM’s full-size pickup trucks are (see GM sets 21-week idle at truck plants for factory updates by Craig Trudell, Bloomberg News, posted 12/23/2011 on The Detroit News).

The largest U.S. automaker has said it boosted profit this year by building supply of Chevrolet Silverado and GMC Sierra trucks, two of its most profitable models. GM is idling pickup factories for updates and renovations so that they’re able to assemble the automaker’s next-generation trucks…

GM had 202,720 full-size pickups in inventory at the end of November, 105 days supply on a selling-day basis, the company said Dec. 1. The company has said it’s targeting year-end inventory of about 200,000 full-size pickups, or about 90 days supply.

Note that GM’s most profitable vehicles are two full-size pickup trucks.  And if you do the math that 105 days of inventory equals about 58,000 trucks sold each month.  And that’s with no government incentives or rebates.  Because the government hates these trucks.

Compare that to the car of GM’s future.  The Chevy Volt.  How many are they hoping to sell?  About 10,000.  In one year.  And at a cost to taxpayers of about $250,000 per Chevy Volt.

People want full-size pickup trucks.  They don’t want the Chevy Volt.  Yet our government will pay a quarter of a million dollars per Volt to help make us buy what we don’t want.

What’s wrong with this picture?

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