Tuesday, August 26, 2008

City of Flint to help fund Chevy Volt. Next?

How much will those outside GM pay to fund the Volt?

GM needs a massive amount of money, or at least extremely cheap, government backed loans, to make the Chevy Volt a reality. But in addition to the Feds, the City of Flint has now committed millions in tax breaks to GM to help build a new plant for the Volt in Flint, despite the fact that many in Flint have already lost GM jobs. GM is also seeking millions from the state of Michigan as well. And, just to top it off, Congress will almost certainly provide tax credits for plug-in hybrids like the Volt as well.

Is this all a necessary evil? Is it not even evil, but standard for the auto industry? Is it just another example of the sad state of the US auto industry?

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