Written By : Warner Todd Huston
March 30, 2011

A few days ago I wrote about how the Obama administration has stuffed the upper echelons of management at General Motors with government lackeys who have no experience in the auto industry and how Obama’s government will lead GM to ultimate failure. Today, as Van Helsing mentioned, we see yet one more step toward GMs ruin with government plans for subsidies that the taxpayers will end up paying for.

The Washington Times’ Kerry Picket reports that some Democrats and the geniuses Obama put at the top of GM, much derided as “Government Motors,” are proposing that taxpayers be tapped to foot the bill for tax credits and rebates for customers that buy the failed Chevy Volt.

Michigan Senator Debbie Stabenow has proposed legislation known as the Charging America Forward Act (S.298) that will give federal cash rebates of $7,500 to anyone that buys the Chevy Volt.

The Department of Energy claims that this rebate program idea is somehow just like the Cash For Clunkers program. But this couldn’t be more different.

First of all, this program is only for one car model, the Volt, not just any car model. It isn’t likely that the program will stimulate the greater economy. Secondly, the Chevy Volt is a failing model. thus far in 2011 GM only sold 602 Chevy Volts. The Volt’s month-to-month sales were down between January and February, too. Sales went from 321 in January to 281 in February.

The fact is that these thousands of dollars of rebates will not do much good and will cost far more in administrative costs than it is worth doing. Not to mention that it will keep GM manufacturing a car that no one seems to want. The latter is the worst part of this as GM will continue putting resources to a failed model to sustain Obama’s green initiatives despite poor sales.

This is further evidence that GM is now a political body and not a car manufacturer. It is also further evidence of the seeds of failure being deeply planted in one of the nation’s largest corporations.

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