Volt-a Face: GM's Bail-Out Gimmick

As we move leisurely through the meat of Act Four, we learn that the core of the "Plan" GM is going to present to Congress (See "Kabuki, Part 1") as proof of their <gag>sincerity and integrity</gag> is a plug-in hybrid called the Volt.

The Chevrolet Volt, a plug-in hybrid, will not arrive in showrooms until late 2010. But it is already straining under the weight of an entire company.

Executives at General Motors, the largest and apparently the most imperiled of the three American car companies, are using the Volt as the centerpiece of their case to a skeptical Congress that their business plan for a turnaround is strong, and that a federal bailout would be a good investment in G.M.’s future.

The Volt was actually first shown back in 2006 and has been under development a good deal longer in various guises. In fact, GM first showed an electric-gasoline hybrid back in the 70's and has claimed to be developing it (certainly they collected lots of money from the Federal govt in the form of tax incentives based on that claim) for some 30 years, none of which has ever been marketed even though GM has said every year at every car show, "any day now", which, over the past 3 decades, environmentalists have learned to translate as "the check is in the mail".

Now they're dragging it out to show Congress (the only action they've ever taken when it comes to Green cars is to show them for PR purposes). There's only one teensy weensy problem - well, a few, actually - hardly worth mentioning. Despite the Japanese automakers' apparently magical ability to get working, dependable hybrids on the market, like, years ago, GM's doesn't go very far and is, as usual, way overpriced.

G.M. says the car, which is scheduled to arrive in showrooms two years from now, will be able to travel 40 miles on a charge, but it will also have a small gas engine to extend the range to as much as 640 miles using both the battery and gasoline (the 1.4 liter, four-cylinder engine is intended to run a generator that will power the car and recharge the batteries once they are depleted). It is expected to cost about $40,000.

To some, the Volt will remain a niche vehicle until its cost drops sharply and its range rises dramatically.

“If you’re the affluent individual who wants to make a statement, it’s one thing,” said Ron Pinelli, president of MotorIntelligence.com, an industry analysis firm. “If you’re Joe the Commuter, you’re not going to spend $40,000 on an electric car. It’s insane.”

But since Fancy Nancy has already told the Jet-Set Honchos of the auto industry that they'll get their money regardless (see "Kabuki Part 2"), and the NYT editorial board has to all intents and purposes abandoned its usual common sense to join the other Chicken Littles in screaming "CRISIS! DEVASTATION! YOU MUST SAVE THEM!!!", the elements are all in place for the Grand Finale before a single citizen voice has been heard. Except for this one, naturellement:

President Bush, in his weekly radio address, castigated Democrats for failing to vote on an alternative proposal to let automakers instead tap $25 billion in loans that are supposed to help them improve the fuel efficiency of their cars.

"If the automakers are willing to make the hard decisions needed to become viable, they should be able to receive the funds Congress already allotted to them for other purposes," Bush said. "The American people expect their elected leaders to do what it takes to solve it."

I would say it was odd to see the Dems and Bush pushing the same line except, of course, that it isn't. It's the Kabuki. They pretend to be at loggerheads and then the Democrat Conservative Alliance does precisely what Bush wants. He is the lamest of lame ducks and he still rules the roost.

Pathetic.