November 29, 2010 · 2 comments
First the government buys General Motors. Then they require the company to build electric cars that the public doesn’t want and won’t buy. So how can the government paper over this fiscal fiasco? By purchasing the cars from itself, of course.
In the words of Aretha Franklin, who’s zoomin’ who?
Fox News has the details of the government-created demand for government-created products:
President Barack Obama’s administration has bought almost a fourth of the Ford Motor Co. and General Motors Co. hybrid vehicles sold since he took office, accelerating federal purchases as consumer demand wanes.
The U.S. General Services Administration, which runs the government fleet, bought at least 14,584 hybrid vehicles in the past two fiscal years, or about 10 percent of 145,473 vehicles the agency purchased in that period, according to sales data obtained by Bloomberg under a Freedom of Information Act request. In fiscal 2008, hybrids accounted for less than 1 percent of government purchases, the data showed.
The government is boosting investment in a technology that has failed to win broad acceptance after more than a decade in the marketplace. Consumer sales of hybrids are headed for their third consecutive yearly decline. Government agencies and businesses have said they also will purchase all-electric models being introduced by automakers including GM.
“At some point, the reality is that for this technology to be accepted, it needs to be done without a government crutch,” said Jeff Schuster, director of forecasting at J.D. Power & Associates in Troy, Michigan. “But without a huge gas-price increase or further government demand, the natural demand just isn’t to be there.”
To complete the story, it should be pointed out that Government Motors does have one other big customer in addition to itself.
General Electric, which makes the recharging stations for electric cars and who also received a big pile of stimulus money, has announced that it will buy a fleet of electric cars.
Can anyone say, “Shell game.”
Source: Fox News