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GM Admits that Dealerships are Taking Chevy Volt Tax Credits
National Legal & Policy Center ^ | May 31, 2011 | Mark Modica

Posted on 05/31/2011 1:32:34 PM PDT by jazusamo

Chevy Volt photoAutomobilemag.com reports that General Motors has responded to my report questioning whether dealerships are gaming Chevy Volt tax credits. Chevy Volt spokesperson, Rob Peterson, states that "NLPC is confused." He then goes on to confirm that the dealerships purchasing Chevy Volts and reselling them as used vehicles are entitled to the $7,500 tax credit. Clearly, it is GM that is confused, considering that this was the main point of my report.

GM does not deny that Chevy dealerships are selling Chevy Volts to other dealerships, including a KIA dealership, for resale. At the same time, Peterson also touts the high demand for Volts claiming, "we don't sell Volts at the moment - it's almost like we deliver them." By this statement, you wouldn't know that sales for the Volt averaged a dismally low 425 per month for the first four months of the year. GM recently stated that they had the capacity to build at a pace of 17,000 per year. So, here's a question for GM and Mr. Peterson: If demand is so high for the Chevy Volt, why would a Chevy dealership sell the vehicle to other dealerships, particularly when there are supposedly customers lined up to pay full price? The answer seems clear to me. GM is exaggerating the "high demand" for the Volt. And allowing dealerships to take the tax credit intended for consumers is just wrong.

Peterson also claims that no issues exist with dealerships taking the tax subsidies as long as they are honest with customers. Unfortunately, there is no guarantee of that being the case. Many customers who buy Chevy Volts may feel that they are entitled to the tax credit, especially if they are paying near MSRP and the vehicles have such low mileage. The IRS form in its current form does not safeguard against double claiming of the tax credit.

More investigation is warranted on the practice of dealerships taking tax credits and reselling Chevy Volts as used cars. Treasury should modify the IRS tax credit form to clearly disallow dealerships from taking the tax credit. Also, I personally don't think businesses like General Electric, headed by Obama friend Jeff Immelt, should be allowed to take millions of tax dollars in credits when they purchase thousands of the vehicles, as planned. An identifier field for the Vehicle Identification Number should be added to the form to prevent double claims of the tax credit. General Motors has a responsibility to ensure that Chevy Volt tax credits are reserved for the consumers that they were designed to benefit. Misguided as tax subsidies for the Chevy Volt may be, the least taxpayers deserve is assurance that abuses are not occurring.

Related:

Taxpayers Get Scammed on Chevy Volt Tax Credit? (Fox Business Network video)

Are GM Dealerships Gaming Chevy Volt Tax Credit?



TOPICS: Business/Economy; News/Current Events
KEYWORDS: cashforcommies; chevyvolt; cronycapitalism; cultureofcorruption; gloriesofsocialism; gm; governmentmotors; govtmotors; obama; obamanomics; obamunism; scam; taxcredit; taxes; volt
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GM admits dealerships are committing fraud or at least being unethical.
1 posted on 05/31/2011 1:32:42 PM PDT by jazusamo
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To: Admin Moderator

Consider this for News/Activism - Extended News?


2 posted on 05/31/2011 1:34:07 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: jazusamo

That’s how the trouble started in Fargo.


3 posted on 05/31/2011 1:35:40 PM PDT by AU72
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To: jazusamo
Unethical car dealer?? Incompetent government program??

You're kidding me! Right?

4 posted on 05/31/2011 1:37:27 PM PDT by CharlyFord
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To: jazusamo

Ford, et al should SUE and make NATIONAL NEWS OUT OF THIS FRAUD.

I have said it right from the start- Obama didnt have to take over the entire auto industry, only ONE company.

Then use the power of the government to put the others out of business with tax scemes like this.


5 posted on 05/31/2011 1:37:39 PM PDT by Mr. K (CAPSLOCK! -Unleash the fury! [Palin/Bachman 2012- unbeatable ticket])
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To: jazusamo

Racketeering . . . in a corrupt organization? My, how surprising and unexpected.


6 posted on 05/31/2011 1:37:48 PM PDT by Pollster1 (Natural born citizen of the USA, with the birth certificate to prove it)
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To: jazusamo
What are they going to do when at the end of the year when there's a firestorm of angry customers who thought they could take a $7,500 tax credit only to find they are not able to becase they technically bought a "used" car?

This probably does amount to fraud; I doubt the salesmen are telling customers they won't get the tax credit. I also wonder how many of these are "sold" to the same dealership (You know "Patterson Chevy/Kia"--a dealer that sells more than one brand) so the car is on the same lot with the other Chevies.

Not to worry, I'm sure the government will allow the tax credit to be issued twice against the same car, just to be fair (hey, it's only money--taxpayer money).


Nerds 4 Cain is in beta testing: www.nerds4cain.com

7 posted on 05/31/2011 1:41:10 PM PDT by Brookhaven (Herman Cain knows math, computers, pizza, money, hamburgers, banking, and Coca-Cola)
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To: Brookhaven

Looks to be quite a scam and can of worms.

I’d bet Obama and his thug Holder will do nothing about it and in fact probably knew about it all along.


8 posted on 05/31/2011 1:44:02 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: jazusamo
This definitely explains why the dealers don't have any NEW Volts to sell to customers.
9 posted on 05/31/2011 1:44:03 PM PDT by muawiyah
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To: Brookhaven

The Volt is a POS.


10 posted on 05/31/2011 1:45:37 PM PDT by safetysign
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To: jazusamo
I don't understand, everybody knows that government subsidies are for the benefit of crony capitalists, and Government Motors dealers that still exist were selected entirely on political criteria, so they qualify as crony capitalists. Everything is working exactly as intended in the government decree that stole Government Motors from the bond and stockholders.

Crony capitalism, the new spelling of fascism.

11 posted on 05/31/2011 1:46:07 PM PDT by Navy Patriot (Sarah and the Conservatives will rock your world.)
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To: muawiyah
This definitely explains why the dealers don't have any NEW Volts to sell to customers.

Absolutely. The one dealer that had six new ones for sale 70 miles from Mark Modica must be an honest dealer.

12 posted on 05/31/2011 1:46:16 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: safetysign
Well duh. We all know that.

Worse, they claim it onlhy cost $40,000 to build; someone had worked out the acutal cost to manufacture each care, and it is in the 7 figure range.

13 posted on 05/31/2011 1:50:48 PM PDT by Brookhaven (Herman Cain knows math, computers, pizza, money, hamburgers, banking, and Coca-Cola)
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To: Sacajaweau

Ping to GM tax credit rip off.


14 posted on 05/31/2011 1:51:25 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: All; jazusamo

The real question is whether the Obama administration deliberately didn’t exclude this practice upon lobbying by GM.


15 posted on 05/31/2011 1:53:22 PM PDT by newzjunkey (Ignores War Powers, law by auto-pen, 70 golf rounds, 'unexpected' economic news. 4 more yrs?)
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To: newzjunkey

Agreed. And if they did they knew it was underhanded because it was kept quiet.


16 posted on 05/31/2011 1:56:28 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: Admin Moderator

Thank you, AM!


17 posted on 05/31/2011 1:57:46 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: jazusamo
The IRS form in its current form does not safeguard against double claiming of the tax credit.

By design?

Why not. The same car could be sold many times and the credit claimed by every buyer.

It would not be surprising to me that the IRS ends up giving more tax credits for the purchase of Volts in 2011 than were built by Chevy for the year.

18 posted on 05/31/2011 1:58:35 PM PDT by Pontiac
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To: jazusamo

GM is dead to me. They died in my eyes when the were the first in line for ZerO’s bailout express. I will never buy another GM product, used or new. I will look at Ford first, then Chrysler, then reluctantly at foreign if necessary. I have never owned a new foreign car.


19 posted on 05/31/2011 1:59:45 PM PDT by OriginalChristian (The end of America, as founded, began when the first Career Politician was elected...)
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To: All

has anyone seen a chevyvolt in the wild?

anywhere?

how do other monthly car sales compare?


20 posted on 05/31/2011 2:00:12 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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