House Republicans plan to accuse the National Highway Traffic Safety Administration of delaying an announcement of problems with the battery in a Chevy Volt out of fear of damaging the value of the government’s investment in the car’s manufacturer, General Motors, and jeopardizing President Obama’s re-election prospects.
The House Committee on Oversight and Government Reform plans a subcommittee hearing Wednesday morning and will release a staff report that argues that the administration’s bailout of General Motors created business and political reasons for the government to sacrifice public safety.
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According to a 16-page staff report, “like the case of Solyndra, the president has closely tied his reputation to the success of the Volt.” Solyndra was a manufacturer of solar arrays that went bankrupt after receiving a federal loan guarantee of more than $500 million.
The report points out that the government has given Compact Power Inc., a manufacturer of lithium-ion batteries for the Volt, $151.4 million; it has also given General Motors $105.9 million to build factories to make electric drive systems, and it has given Delphi Automotive Systems, which used to be part of G.M., $89.3 million to expand factories for making components. The report also notes that Volt buyers can get up to $7,500 in tax credits for buying the car. The Volt is a plug-in hybrid car that can go about 35 miles on battery power before using an onboard gasoline engine to extend its range by about 300 miles. G.M. has highlighted the car as proof that it can be a technological leader in the auto industry and has staked much of its reputation upon the car’s success.
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The fire happened in a crash test vehicle. The fire problem is only one of Volts issues. It is not a good car. It is over priced even with the subsidies. The market place was rejecting it before the fire issue arose. Obama tried to mislead voters about the government investment in GM during his state of the union address. What he deems a success is a poor investment that will cost tax payers billions and has already cost bond holders billions because of the unfair way the bankruptcy was structured.
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