The U.S. Senate voted Tuesday to extend tax credits for plug-in hybrids, but all is not well. The legislation redefines “plug-in elexctid vehicle” in a way that will give GM and the Chevrolet Volt an (unfair?) advantage. As the bill is written it qualifies vehicles for the tax credit based on the vehicles range in electric-only mode. This is bad news for Toyota whose hybrid relies more on a combination of gasoline and elecric power from it’s batteries.
Toyota is understandably not at all thrilled by this seemingly unfair PHEV legislation. Consumers should be able to receive a $2500-$7500 credit on a Chevy Volt but most likely nothing on a Toyota. Still with the base model of the Prius at a very affordable $21,000 it’s still highly competitive. The new Chevy Volt is rumored to have a future sticker price of over $40,000. Even with the tax credit it’s still overpriced and, a Chevy.
The Chevy Volt. Will Unfair Tax Credit Legislation Give it A Chance Against the Prius?
It’s going to take a lot more than unfair legislation to make anything produced by the big three competitive with innovative car manufacturers like Toyota and Honda. These tax credits might convince a handful of staunch supporters of the Big Three to purchase a PHEV period. Still, I can’t imagine why anyone would be willing to shell out $10,000 more for a Chevy.
What are your thoughts?
2 Comments until now
Nice post.
1. At least it looks 10000000000 times better than the Prius.
2. Overpriced? What about all the money you’re going to save by never ever buying a drop of $10/gallon gas?
3. Chevy makes Corvettes. They’re not that bad.
1. Really? I think they both look the same.
2. Will be a valid point when gas prices rise again.
3. True Corvettes aren’t so bad, if you like to drive really fast in a straight line.
Thanks Sam for the argument. I know my views are not in the majority, at least in the U.S.
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