While Speaking Today In North Carolina, Obama Again Laid Out His Failed Policies Of Fuel Efficient Cars

Today, Obama Laid Out New Incentives To Promote Development Of Fuel-Efficient Cars And To Make It Easier For People To Buy Next Generation Vehicles. “President Barack Obama will outline incentives to promote development of more fuel-efficient cars and to make it easier for people to buy and operate next-generation vehicles during an election-year visit Wednesday to a North Carolina truck plant.” (Anne Gearan, “Obama To Talk Jobs In NC A Day After GOP Contests,” The Associated Press, 3/7/12)

OBAMA PROMISED BIG ON NEW GENERATION VEHICLES, ONLY TO COME UP SHORT

In 2008, Obama Promised As President To Put “One Million 150 Mile-Per-Gallon Plug-In Hybrid Cars On Our Roads Within Six Years.” OBAMA: “First, we’ll commit ourselves to getting one million 150 mile-per-gallon plug-in hybrid cars on our roads within six years. And we’ll make sure these cars are built not in Japan, not in China, but right here in the United States of America.” (Sen. Barack Obama, Remarks At A Town Hall, Youngstown, OH, 8/5/08)

The Washington Post: “Evidence Is Mounting That President Obama Was Overly Optimistic To Pledge That There Would Be 1 Million EVs On The Road By 2015.” (Editorial, “Overcharged,” The Washington Post, 1/1/12)

• WaPo: “They Simply Pose Too Many Issues Of Price And Practicality To Attract A Large Segment Of The Car-Buying Public.” “They simply pose too many issues of price and practicality to attract a large segment of the car-buying public. More prosaic fuel-economy innovations such as conventional hybrids, clean-diesel cars and advanced gasoline engines all show much more promise than electrics.” (Editorial, “Overcharged,” The Washington Post, 1/1/12)
• WaPo: “Sales Of Electric Vehicles Were Disappointing In 2011 …” “Sales of electric vehicles were disappointing in 2011, with the Volt coming in below the 10,000 units forecast. In addition to its high price, the Volt brand is suffering from news that some of its batteries burst into flames after government road tests.” (Editorial, “Overcharged,” The Washington Post, 1/1/12)

Taxpayers May Not See A Return On The $5 Billion In Taxpayer Funds Obama Poured Into The Electric-Car Industry. “The Obama administration has poured roughly $5 billion in taxpayer funds into the electric-car industry, offering incentives to manufacturers, their suppliers and even car buyers who might want to go green. But analysts say the risk is rising that taxpayers in many cases will not see a return on their money soon, if ever. Instead, they warn that some federally subsidized companies could be forced to shut down in coming months.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)

Obama Predicted Green Cars Would Create Thousands Of Jobs, But Production And Sales Expectations Have Been Dramatically Scaled Back. “Obama predicted in 2008 that green cars would create thousands of new U.S. jobs as demand soared. But in recent months, production lines and sales expectations have been dramatically scaled back.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)

• Obama Predicted That A123 Systems, A Battery Maker That Received $380 Million, Would Create 3,000 Jobs, But Has Only 690 Employees And Has Announced Forced Layoffs. “A123 Systems, a battery maker that received $380 million in government support, announced recently that declining orders had forced layoffs. Instead of up to 3,000 new Michigan jobs as Obama and the company had predicted, it now has 690 employees.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)
• “Battery Maker Enerdel, Recipient Of A A [sic] $118 Million Federal Grant, Took A Hit When Its Key Customer, Electric-Car Maker Think, Declared Bankruptcy This Year.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)
• “Johnson Controls, Which Received A $299 Million Stimulus Grant, Opted To Build One Factory Instead Of Two Because Of Lower-Than-Projected Demand, A Company Official Said, And That One Is Now Operating At Half Capacity.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)
• “California Electric-Car Maker Aptera Announced It Was Shutting Its Doors Because Of Problems Raising Capital.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)

The Chevy Volt Has Failed To Meet Expectations And GM Has Halted Production

GM Will Temporarily Halt Production Of The Chevy Volt And Lay Off 1,300 Workers March 19 Due To Slow Sales. “General Motors Co. will halt production temporarily of its Chevrolet Volt battery-powered car for five weeks beginning this month because of slow sales, the company said on Friday. Around 1,300 workers at GM’s Hamtramck, Mich., factory where the Volt is built will be out of work between March 19 and April 23, a spokesman said.” (Sharon Terlep, “GM To Idle Volt Hybrid Production,” The Wall Street Journal, 3/2/12)

• “The Automaker Recently Announced It Was Shutting Down Volt Production For Five Weeks As Dealers Work To Sell Off The Cars Already Sitting On Their Lots.”

“For 2012, GM Had Set A Goal Of About 45,000 Volt Sales In The United States Alone. That Already Seems Out Of Reach. GM Sold About 600 Volts In January And Just Over 1,000 In February.” (Peter Valdes-Dapena, “High Price Soured Chevy Volt Sales,” CNN Money, 3/5/12)

Fisker Has Failed To Meet Manufacturing Goals And Has Laid Off Workers

In February 2012, Fisker Halted Work At Its Delaware Plant And Laid Off More Than 60 Workers Because It Failed To Meet Production And Sales Milestones Promised In Its Loan Agreement. “Fisker Automotive, developer of luxury electric cars, halted work at a former GM plant in Delaware and laid off 26 workers there because it ran out of government loan money. Fisker had failed to meet production and sales milestones it had promised in the loan agreement with the Department of Energy, so loan cash was shut off last May. Fisker went on a cash diet, and solicited private investors, while it negotiated a new timetable with the DOE. The cash shortage finally forced the layoff of 26 people at the Delaware factory, which was most of the crew working there to get the former GM plant back into service. Fisker also sped up the layoffs of 40 to 45 engineers at its Anaheim, Calif., headquarters.” (James R. Healy, “Fisker, Out Of Government Money, Begins Layoffs,” USA Today, 2/7/12)

Fisker, Backed By More Than A Half-Billion Dollars In Loan Guarantees, Missed Early Manufacturing Goals And Has Pushed Back Plans For U.S. Production And Creation Of Thousands Of Jobs. “An electric car company backed by more than a half-billion dollars in Department of Energy loan guarantees has missed early manufacturing goals and has gradually pushed back plans for U.S. production and the creation of thousands of jobs.” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)

• Fisker’s Finnish Produced Luxury Model Failed To Meet A Promised Energy-Efficiency Standard. “This week, Fisker delayed until 2013 the production of the moderately priced family car it plans to build in Delaware. It also learned that its Finnish-produced luxury model, the $96,000 Karma, which is two years late in reaching U.S. markets, failed to meet a promised energy-efficiency standard.” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)
• In Applying For Federal Help, Fisker Promised To Sell 11,000 Karmas By The End Of October 2011. “In applying for the federal help, the company promised it would produce and sell at least 11,000 Karmas by the end of last month. Energy Department staff members declined to comment on changes between the conditional agreement and the final loan but said that number of cars is no longer required.” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)
• “This Week, Fisker Learned Its Product Couldn’t Deliver On Its Efficiency Pledge — The Car Cannot Travel Solely On Electricity For A 50-Mile Stretch. That Adds To The Many Hurdles Standing Between The Company And Profitability.” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)
• Experts Say There Is Little Room For Error If Fisker Hopes To Repay Its Loan. “Experts said there is little room for error if Fisker hopes to repay its $529 million loan. ‘There is a tremendous amount of risk associated with all of these electric vehicle companies,’ said Kevin C. See, an auto industry analyst with Lux Research in Boston. ‘There is a very real possibility that a lot of these players in the electric vehicle industry may not be there when this all shakes out.’” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)

Fisker, Who Received $529 Million In Federal Loan Guarantees, Manufactures Its Cars In Finland. “A $529 million federal loan guarantee to an electric car company manufacturing automobiles in Finland is drawing more unwanted attention to Energy Department loans. A report by ABC News on Thursday said Fisker, a startup electric car company, is making cars in Finland after receiving the loan because it could not find a contractor in America to actually manufacture its electric vehicles.” (Keith Laing, “Energy Defends Loans For Electric Cars,” The Hill, 10/21/11)

Fisker Has Never Made A Profit. “Fisker, which has never made a profit, received $193 million of the federal loan to support the rollout of the $102,000 plug-in hybrid sportscar. The $336 million balance of the loan is intended to fund development of a sedan known as the Nina that will be sold at a lower price.” (Edwin Chan, “Fisker Pins Hopes On Karma As It Seeks More Cash,” Reuters, 2/14/12)

Tesla Motors Has Failed To Meet Expectations

Obama’s Department Of Energy Loaned Tesla Motors $465 Million In June 2009. “The Obama Administration will lend Tesla Motors $465 million to build an electric sedan and the battery packs needed to propel it. It’s one of three loans totaling almost $8 billion that the Department of Energy awarded Tuesday to spur the development of fuel-efficient vehicles.” (Chuck Squatriglia, “Feds Lend Tesla $465 Million To Build Electric Car,” CNN, 6/23/09)

“The Company Said [In February] Its Fourth-Quarter Net Loss Widened To $81.5 Million.” (“Tesla’s Musk Targets Second-Half Sales Boost With Model S,” Bloomberg, 2/16/12)

• Despite Federal Funding, Tesla Has Lost Money Every Quarter. “Tesla’s SEC filings reveal the start-up has lost money every quarter. And while its federal funding is intended to help it mass produce a new $57,400 Model S sedan, the company has no experience in a project so vast.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

A GAO Audit Criticized The DOE For Failing To Monitor The Success Of Its Loan To Tesla. “Yet an audit this year by the Government Accountability Office, the investigative arm of Congress, criticized the Energy Department for not keeping close enough tabs on its fleet of auto loans — including those to Fisker and Tesla — to ensure they meet benchmarks.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

GAO Audit: “Taxpayers Do Not Know Whether They Are Getting What They Paid For Through The Loans.”  “‘DOE cannot be assured that the projects are on track to deliver the vehicles as agreed,’ said the GAO report examining the department’s ATVM program. ‘It also means that U.S. taxpayers do not know whether they are getting what they paid for through the loans.’”(Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

Alex Taylor, A Veteran Auto Industry Analyst: Tesla’s Business Plan Is “Fraught With Challenges.” “Industry observers say Tesla’s grand plan to launch the Model S is fraught with challenges. ‘They want to scale up production from 1,000 cars a year to 20,000 cars a year, [and] that’s going to be a very hard trick for them to do,’ said Alex Taylor, a veteran auto industry analyst and writer.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

Tesla Had “Significant Delays” In Launching Its First Car And Admits That It Will Face Difficulty In Launching Its Second Model, Both Financed By Taxpayer Funds. “It has no experience in high-volume manufacturing of electric cars, its filings say — the very project it sees as the road toward profitability. Tesla said it encountered ‘significant delays’ in launching the Roadster – and acknowledges that developing the Model S will be a more complex undertaking. The newer car is the project financed by DOE.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

“‘We Have No Experience To Date In High Volume Manufacturing Of Our Electric Vehicles,’ Tesla’s SEC Filings Say.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

Electric Vehicles Are Too Costly For The Average American

Electric Vehicles Are Too Costly. “A key industry problem is that electric cars are generally far more expensive than gas guzzlers. That’s true even with up to $7,500 in stimulus tax credits offered for each vehicle. Obama announced the $2.4 billion in advanced-battery grants at a recreational-vehicle assembly plant in Wakarusa, Ind., where Navistar said it planned to build the eStar, an electric truck for fleets. ‘Just a few months ago, folks thought these factories might be closed for good, but now they’re coming back to life,’ Obama said that day. But a large Maryland truck dealership tried for a year to sell an eStar, then sold it back to Navistar. Sam Eitel, marketing manager for Beltway Cos., said customers liked the truck’s sleek looks but were stopped cold by its $150,000-plus list price.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)

“Cheaper Cars That Don’t Get Tax Benefits Are Selling Better.” “Volts list for around $40,000, but that  can drop to the low $30s when a $7,500 tax credit is taken into account. It’s that tax subsidy that really raises the ire of free-marketers. After all, cheaper cars that don’t get tax benefits are selling better, even at GM.”  (Tom Bemis, “Chevy Volts Aren’t Selling Like Ipads,” Market Watch’s “The Tell,” 8/3/11)

The Volt Is “Simply Too High For Most Customers To Swallow.” “Despite winning a trophy case worth of awards — including Motor Trend Car of the Year and North American Car of the Year — the Chevrolet Volt plug-in car has failed to meet GM’s sales expectations. The problem is simple: The car’s price is simply too high for most customers to swallow, according to analysts.” (Peter Valdes-Dapena, “High Price Soured Chevy Volt Sales,” CNN Money, 3/5/12)

Fisker’s Luxury Model Costs $103,000, While Its Compact Sedan, To Go Into Production In 2013, Will Cost Around $50,000. “The Delaware factory, bought from the bankruptcy assets of the old GM, is intended to manufacture three vehicles on what Fisker calls the Nina (pronounced nee-nah, not ni-nah) platform. The first, a compact sedan priced in the $50,000 range, is to go into production in 2013, though that might be delayed because of the halt. It is to be an extended-range electric.” (James R. Healy, “Fisker, Out Of Government Money, Begins Layoffs,” USA Today, 2/7/12)

Tesla Motors’ Roadster Electric Car Costs $109,000 While Its Model Sedan, To Go In To Production In Mid-2012, Will Cost $57,400. “Tesla Motors Inc. (TSLA), the maker of battery-powered cars run by entrepreneur Elon Musk, may have seen its loss widen in 2011’s final quarter as it wound down production and sales of $109,000 Roadster electric cars. Tesla’s Model S sedan, intended to expand the Palo Alto, California-based company’s sales volume with a base model priced at $57,400, won’t go into production until mid-2012. Until then, Tesla’s main revenue source is supplying battery packs and other components to Toyota Motor Corp. (7203) and Daimler AG (DAI), two of its investors.” (Alan Ohnsman, “Tesla Loss Seen Widening Ahead Of Model S As Roadster Ends,” Bloomberg, 2/14/12)

• In April 2011, Obama Admitted That The Average Person “Can’t Afford To Buy The Tesla.” “‘Right now we’ve got $4-a-gallon gas, and most of the people under this tent don’t have to worry about that,’ Obama said at a fundraiser with wealthy donors Wednesday in San Francisco. ‘But for the average person who has to drive 50 miles to work and can’t afford to buy the Tesla’ — a premium electric vehicle that starts at $101,000 — ‘it’s hammering them. It’s hurting them. So there’s a huge economic imperative.’” (Carrie Budoff Brown, “Barack Obama Talks Deficit, Voters Talk Gas Prices,” Politico, 4/22/11)
  
• Obama: “Right now we’ve got $4-a-gallon gas, and most of the people under this tent don’t have to worry about that.  But for the average person who has to drive 50 miles to work and can’t afford to buy the Tesla — (laughter) — it’s hammering them.  It’s hurting them.  So there’s a huge economic imperative.  There’s a national security imperative, as well, because we see what’s happening in the Middle East and we understand that a finite resource that is primarily located in a very unstable part of the world is not good for our long-term future.” (President Barack Obama, “Remarks At A DNC Event,” San Francisco, CA, 4/21/11)

WHILE OBAMA DOUBLES DOWN ON HIS FAILED INVESTEMENTS, GAS PRICES CONTINUE TO SOAR

In 2008, Obama Promised To Solve The Energy Crisis

Obama In 2008: “As President, I Will Work To Solve This Energy Crisis Once And For All.” OBAMA: “Everywhere I go in Indiana, and across this country, I’m talking to folks who are working harder and harder just to get by. At a time when our economy is in turmoil and wages are stagnant, hardworking families are struggling to pay rising costs, and few costs obviously are rising faster than the ones people pay at the pump. For the well-off in this country, high gas prices are mostly an annoyance, but to most Americans, they’re a huge problem, bordering on a crisis. Here in Indiana, gas costs $3.60 a gallon – and across the country, gas costs more than at any time in almost thirty years. … And as President, I will work to solve this energy crisis once and for all. We’ll invest $150 billion over the next ten years in establishing a green energy sector that will create up to 5 million new jobs – and those are jobs that pay well and can’t be outsourced. We’ll invest in clean energies like solar, wind, and biodiesel. And we’ll help make sure that the fuel we’re using is more efficient.” (Sen. Barack Obama, Remarks On Energy Plan,, Indianapolis, IN, 4/25/08)

• Obama In 2008: ”I want to invest that money in clean, affordable, renewable energy sources like wind power, and solar power, and biofuels, so that we’re not talking about high fuel prices next summer or the next summer after that, or the summer after that.” (Senator Barack Obama, Remarks, Winston-Salem, NC, 4/29/08)

Under Obama, Gas Prices Have Doubled

As Of Wednesday, March 7, 2012, The Average Price For A Gallon Of Unleaded Gasoline Was $3.76. (AAA’s Daily Fuel Gauge Report, Accessed 3/7/12)

When Obama Took Office, The Price For A Gallon Of Regular Gasoline Was $1.847. (Energy Information Administration, Accessed 2/7/12)

The Associated Press: “Gas Prices Are Highest Ever For This Time Of Year.” (Chris Kahn, “Gas Prices Are highest Ever For This Time Of Year,” The Associated Press, 2/19/12)

The National Average For Regular Gasoline Has Never Seen Gas Prices Rise Above $3.50 A Gallon This Early In The Year, As The National Average Hit $3.523 In February. “U.S. motorists have seen the national average for regular gasoline rise above $3.50 a gallon in just three different years, but it has never happened this early. The national average hit $3.523 a gallon, the Energy Department said Monday, up 4.1 cents from a week earlier.” (Ronald D. White, “Never Before Have Gas Prices Risen So High So Early In The Year,” Los Angeles Times, 2/14/12)