GM denies a claim that Chevrolet dealerships are getting the $7500 tax incentive

Article by Christian A., on May 31, 2011

General Motors denies a claim by a Virginia-based non-profit group that Chevrolet dealerships are stealing a federal tax credit from customers. GM describes these allegations to be “confused.” The federal government is offering a $7,500 tax credit to those who buy electric cars such as the Chevrolet Volt and Nissan Leaf to help offset the high prices of these cars.

Two dealerships were identified by the National Legal and Policy Center to have titled a new Volt. These two dealers claimed the $7,500 tax incentive and kept these amounts. The vehicles were then resold as used. Those who purchase a used Volt can’t qualify for the tax break.

This is why the NLPC is claiming that these Chevrolet dealerships are “gaming” the tax credit. Volt spokesman Rob Peterson responded to the accusations, saying that there’s nothing to worry about since these two dealerships can’t legally sell a new Chevrolet Volt. The California-based Kia dealership obviously can’t sell the Volt.

The other dealership – a Chevrolet dealer in Chicago – won’t be able to sell the Volt as a new vehicle since it is not included in the model’s launch markets. Peterson explains that the practice is acceptable just as long as customers are told that these cars are technically used and can’t be eligible for the tax credit.

To sell a Volt, these dealerships have to purchase one from a Chevrolet showroom located in one of the Chevy Volt’s launch markets. The purchasing dealership (Kia or Chicago-area Chevy) has to title the vehicle, which means it has to be sold as used. Under the law, only the first-title owner could get the $7,500 incentive.

The dealership then gets the money rather than the end consumer. Peterson denies the NLPC’s claims that this scenario takes place when dealerships undertake “dealer-to-dealer” trades to swap Chevrolet Volts between showroom lots. He said that what actually happens is that the title is merely transferred from one dealer to the next.

The 2011 Chevrolet Volt electric vehicle is powered by the so-called Voltec propulsion system that includes a 16-kWh lithium-ion battery pack and electric drive unit delivering pure electric range between 25 and 50 miles. The Volt features a 5.5-foot, 435-pound (198.1 kg) T-shaped, 16-kWh lithium-ion battery pack that delivers 11 kW (149 hp) of max output.

In addition, the Volt employs a 1.4-liter gasoline-powered engine that can extend the range up to 310 miles on a full tank of fuel. This gasoline mill delivers an extra 63 kW (84-hp) of output.

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Topics: gm, chevrolet volt

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