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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
Automobilemag.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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To: AU72
21
posted on
05/31/2011 2:00:22 PM PDT
by
Seaplaner
(Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
To: jazusamo
Thats very unexpected. I thought for sure GM would become very succesful when the feds stole the company from bondholders after management ran it into the ground before the boom ended. Not to mention selling crappy cars that cost 40 grand to build that come with tens of thousands of tax breaks. Thank you, Uncle Sam!!
22
posted on
05/31/2011 2:02:09 PM PDT
by
winodog
To: jazusamo
...the Volt averaged a dismally low 425 per month for the first four months of the year... Ah, this stunning sales victory from the same Central Planning Marxists that brought you Clunkernomics, eh?
.
23
posted on
05/31/2011 2:07:41 PM PDT
by
Seaplaner
(Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
To: Seaplaner
This scam could turn out to be more of an outrage than the Clunkers and the same turkey is behind it.
24
posted on
05/31/2011 2:12:15 PM PDT
by
jazusamo
(His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
To: jazusamo
So what is the real cost of this little beauty up to these days??
Have we broken the $75,000/unit mark yet?
Imagine what the 60 Minutes episode on the Volt will be like five years from now when someone finally gets to the bottom of this...
25
posted on
05/31/2011 2:13:14 PM PDT
by
Bean Counter
(Your what hurts??)
To: Bean Counter
There was a piece two or three days ago about it being over 80K a pop with R&D and I believe it.
26
posted on
05/31/2011 2:18:04 PM PDT
by
jazusamo
(His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
To: AU72
Thats how the trouble started in Fargo. The character who tried to pull that stunt was much smarter than Obama.
27
posted on
05/31/2011 2:23:26 PM PDT
by
Dixie Yooper
(Ephesians 6:11)
To: Brookhaven
What are they going to do when at the end of the year when there's a firestorm of angry customers I would have used the word "handful" instead of "firestorm".
28
posted on
05/31/2011 2:26:17 PM PDT
by
Dixie Yooper
(Ephesians 6:11)
To: longtermmemmory
I actually saw one showcased the other day at a local small town dealership. Haven’t seen one on the road where we are.
29
posted on
05/31/2011 2:37:46 PM PDT
by
sheana
To: jazusamo
we need hearing on GM, hearings on the volt, hearings on everything this guys does. Why no hearings?? Obongo HATES to be questioned, it makes him furious and throws him off his game.
hearings hearings hearings.
30
posted on
05/31/2011 2:45:37 PM PDT
by
rokkitapps
( Hearings on waivers NOW!)
To: jazusamo
No VIN number, what to stop non buyers from claiming the credit?
31
posted on
05/31/2011 2:47:59 PM PDT
by
razorback-bert
(Some days it's not worth chewing through the straps.)
To: jazusamo
No VIN number, what to stop non buyers from claiming the credit?
32
posted on
05/31/2011 2:48:08 PM PDT
by
razorback-bert
(Some days it's not worth chewing through the straps.)
To: jazusamo
I will never buy anything made by GM for the rest of my life.
33
posted on
05/31/2011 2:56:36 PM PDT
by
Ham Hock
To: Brookhaven
Well, well, well. Auto dealers doing unethical things. This is certainly “unexpected”...
34
posted on
05/31/2011 2:59:20 PM PDT
by
The Antiyuppie
("When small men cast long shadows, then it is very late in the day.")
To: jazusamo
I have long refused to buy a GM product and never, ever, will. =.=
35
posted on
05/31/2011 3:09:35 PM PDT
by
cranked
To: jazusamo
“Peterson also claims that no issues exist with dealerships taking the tax subsidies as long as they are honest with customers.”
ROTFLOL with tears pouring out of my eyes! Dealerships being honest with customers? Is that anything light a warm and fuzzy tax audit? A gentle football game? Jumbo shrimp? Fresh 1000 year old eggs? Polite union official? Wow, talk about your ultimate oxymoron!
ROTFLOL with tears pouring out of my eyes!
To: catnipman
Do you honestly think Peterson would lie about that? /s ROTFLOL!!!
37
posted on
05/31/2011 3:58:40 PM PDT
by
jazusamo
(His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
To: jazusamo
Obama had to find a way to payoff the Chevy dealers. This was a planned operation. Can’t keep those union workers on the taxpayer payroll if there aren’t any dealers to sell Chevys.
38
posted on
05/31/2011 4:32:11 PM PDT
by
blueunicorn6
("A crack shot and a good dancer")
To: jazusamo
And allowing dealerships to take the tax credit intended for consumers is just wrong. First time I've heard that. I've heard of care dealers taking the credit if they lease the car. It would seem to me that something is rotten in Denmark if multiple tax credits are taken on the same car...
39
posted on
05/31/2011 6:31:53 PM PDT
by
EVO X
To: EVO X
40
posted on
05/31/2011 6:36:03 PM PDT
by
jazusamo
(His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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