Obama Admin to Buy from GM's Struggling Chevy Volt Line
The Obama administration is helping General Motors again by buying up its struggling line of electric cars.
The Department of Defense has begun purchasing Chevrolet Volts to "green up" the military. The DOD plans to buy a total 1,500 vehicles. At the Volt's baseline price of $39,995, that's almost $60 million from taxpayers to the company touted heavily during the Democratic National Convention.
GM loses up to $49,000 on every Volt it builds; it has sold only 13,500 Volts this year, 33.75% of its 40,000 goal; and the assembly plant that makes Volts will be closed for four weeks beginning September 17 due to low sales.
GM's initial investment in the Volt was over $1 billion, and since its release, the company has spent even more trying to re-engineer the vehicle for a flaw which has led to it catching fire when charging overnight.