81% subsidy

If you don’t already hate GM (why are you reading this blog?), perhaps this will get you there:

The problem is said to be the price of the Volt, which is a massive understatement, because everyone buying a Volt is understating the price. No one purchasing a Volt has the faintest clue what it really costs, because of all the taxpayer subsidies plowed into production, and hefty rebates offered at the point of sale. $400 million in federal subsidies were extracted from the taxpayer to fund Volt production, and buyers have enjoyed a $7500 federal tax credit.

That means each of the 3200 Volts sold thus far has rolled out of the lot with $132,500 in taxpayer subsidies stuffed in the glove compartment. They sticker at $41,000, so that means each Volt sold thus far actually costs $173,500, with only $33,500 paid by the actual purchaser.

That figure averages in the fixed cost assuming that not a single additional Volt will be sold. But with a realistic estimate of future Volt sales, the cost only goes down to $104k. Under GM’s assumptions, the price before subsidy would be only $47.5k.

(Via Vokdapundit.)

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