How to triple GM Volt sales with a lead brick

In the United States, from an accountant’s viewpoint, which makes a better new pizza deliveryvehicle for a small business: a Chevy Volt or a Chevy Tahoe?

The Volt MSRP is $39,145, the Tahoe $39,080.

The Volt costs approximately 6 cents of energy per mile to run; the big SUV 25 cents a mile (EPA 98 MPG vs. 15 MPG city).

Although both are GM products, the Volt has a better warranty and is also proving to be much cheaper on maintenance, requiring far fewer oil changes per miles driven than the big V8-powered SUV.
 

 

As a bonus the Volt is eligible for a Bush-era EV tax credit of $7,500.

You might think that the answer is shaping up to be a no brainer in favor of the Volt. The Volt is cheaper to buy, and is 1/5 the cost to run. It is also better suited to an urban environment, and as a bonus gives any business an instant environmentally friendly image.

But thanks to the often loopy U.S. tax code, specifically section 179, depending on your small business need for an immediate tax write-down, the SUV is the clear winner. This is because under section 179 you can write off $25,000 for the Tahoe versus only $11,060 for the Volt in the first year.

This is due to the U.S. tax codes massive incentive to small businesses to buy a vehicleweighting more than 6,000 pounds. Weight is the deciding factor. The Volt weights 2,220 pounds below this arbitrary limit; the Tahoe a few pounds above the limit. This incentive makes the SUV the accountants pick by a country mile ($6,000).

Several years ago, when this incentive was north of $75,000, Section 179 was often referred to as the “SUV Tax Loophole” or the “Hummer Deduction.” Many small business owners used this tax code to completely write-off the purchase of qualifying vehicles at the time (like Hummers). That’s TEN TIMES the current EV tax Credit of $7,500. Worse it encouraged businesses to buy grossly inefficient high running cost gas guzzling monsters like the Hummer. During the last few years that particular benefit of Section 179 has been reduced, but still sits at $25,000. (See “Vehicles & Section 179″ for current limits on business vehicles ).

For a list of other popular vehicles whose sales are still buoyed (some might say solely) by the section 179 tax break see Section129.org.
 

 

Some of the vehicles eligible for this tax break have greater sales each month than all current 2012 electric vehicles sales combined.

Having dueling incentives, one encouraging small business to hobble themselves with an inefficient heavy SUV, the other encouraging the purchase of a new efficient Electric Vehicle reveals a schizophrenic U.S. tax system. It is also a business incentive system that is heavily biased against fuel efficiency.

This bias is out of step with a fragile U.S. economy struggling under the burden of expensive foreign oil imports and an inefficient transportation system. Providing an incentive for business’s to purchase a new gas guzzling SUV over an EV that could do the same job isn’t just loopy, it’s counter to current U.S. energy policy.

Some small business owner are buying Volts anyway. Their business strategy appears to be to purchase a Volt personally and then charge back “Business miles” driven. The IRS lets you deduct business miles driven in your personal car, at a rate of 55 cents per mile. That figure is based on inefficient gas-guzzlers, so it can really work to the Volt owner’s advantage.

Assuming that it is too costly politically to take a meat clever to the section 179 sacred cow, one solution could be to synchronizing and equalize these dueling incentives. This could be done by providing an exception to the 6,000-pound minimum weight limit if the vehicle in question meets the same eligibility requirements for the EV tax credit. An added benefit could be the reduction in the EV tax credit payouts by restricting it to consumers only. This would both level the incentive playing field for small business vehicles, and save the U.S. taxpayer some money.
 

 

Its impact on EV sales, especially the pack-leading Volt, could be dramatic. Capturing even a fraction of the current section 179 incentivized sales could triple current EV sales.

Allowing the same tax deductions for a business purchasing a Volt that is allowed for a business purchasing a Tahoe, Silverado, or a Mercedes SUV is also good for long-term business efficiency and overall American economic competitiveness.

Until the political will can be found to simplify the U.S. tax code, there is something GM can do today. GM could dramatically improve Volt sales to small businesses by adding 2,220 pounds of lead lining (26 88-pound lead bricks) to the Volt. This would make it weight more than 6,000 pounds and allow the Volt to qualify for the section 179 maximum $25,000 write down. They can market it as a business option add on for the currently radioactive small business environment. I recommend calling it the section 8 option, or Volt S8 for short.

Source: GM-Volt.com

Chevy Proves Green Streak With Highest Ever Sales Figures of Spark, Sonic, Cruze and Volt

Chevrolet is definitely going green--or at least, its customers are, as GM announces best-ever monthly sales of its four most gas-sipping models.

Helping to reach sales 10 percent greater than those in August last year, the Spark, Sonic, Cruze and Volt all set their highest monthly sales figures since hitting the market.

In addition to the Volt's August sales record of 2,831 vehicles--up on the previous best of 2,289, set earlier this year in March--the Sonic and Cruze also beat their previous bests by several hundred vehicles.

The tiny Chevy Spark almost doubled its July figures, as a result of natural increases following its first full month on sale. Chevy sold 2,630 Sparks in August, up from July's tally of 1,460.

GM is putting some of the sales boost down to extensive promotion during the summer's Olympic Games, but increasing awareness of cars like the Volt is also playing a part, having out-sold its Nissan Leaf rival consistently this year.

Passenger car sales were up 25 percent overall, buoyed by a spate of recent product launches.

But the good news is that buyers are really taking to Chevrolet's range of small and fuel-efficient vehicles, spurred on both by rising gas prices, and a huge increase in quality over GM's small cars of only a few years ago.

And whether it's the technology of the Chevrolet Volt or the lightweight simplicity of the Spark, green buyers have more choice than ever in Chevy's lineup.

Source: Green Car Reports

Chevy Sonic Turbo now available with six-speed automatic

The Chevrolet Sonic’s Ecotec 1.4L turbo engine will now be available with either manual or automatic transmission. The 2012 Chevy Sonic Ecotec 1.4L turbo six-speed automatic delivers an EPA-estimated 37 mpg highway and 27 mpg in the city (6.36 and 8.7 L/100 km), while the manual gets 40 mpg on the highway and 29 mpg in the city (5.88 and 8.1 L/100 km).

The Hydra-Matic 6T40. Click to enlarge.

The Hydra-Matic 6T40 automatic transmission is part of GM’s family of six-speed automatic transmissions. The 6T40’s wide overall gear ratio spread provides everything from strong first gear acceleration to fifth and sixth gear overdrive gears for strong highway fuel economy.

Traditionally, turbocharging was used to enhance the performance of engines, but today it is as much about fuel economy as a 0-to-60 time. The turbocharger provides high-pressure airflow for high torque to boost the vehicle and give the driver a fun driving experience with improved fuel efficiency.

—Bob Benedict, assistant chief engineer for the Ecotec 1.4L engine

Sonic’s Ecotec 1.4L turbocharged engine and six-speed manual transmission achieved a 0-to-60 mph time of 7.8 seconds, according to independent AMCI testing; the Sonic with the turbo-automatic combination went from 0 to 60 in about eight seconds.

A Closer Look At the 2012 Chevrolet Sonic

The 2012 Chevrolet Sonic is the first subcompact car built in the U.S. in a very long time, and one of several new Chevy models that aim to lift the carmaker's overall fuel efficiency.

We'll be driving at least three separate 2012 Sonics within four weeks, so we're seeking your input.

What do you want to know about the new 2012 Chevrolet Sonic? Leave us your questions and thoughts in the Comments section below, and we'll do our best to get you answers on our various Sonic drives.

While the Chevy Sonic is rated by the EPA at roughly the same gas mileage as its larger compact Cruze sibling, the little Chevy is the company's first serious attempt to compete with the best of the subcompact field.

That includes the newly redesigned 2012 Toyota Yaris, the capacious, flexible, and fun-to-drive Honda Fit, the all-new 2012 Nissan Versa, and the high-style Ford Fiesta, among others.

2012 Chevrolet Sonic

The 2012 Chevrolet Sonic is offered as a five-door hatchback and four-door sedan, with a pair of engine choices. The base engine is a 138-horsepower, 1.8-liter four, with an optional 138-hp turbocharged 1.4-liter four that produces the same power and more torque, but uses less fuel.

Transmission options for the base engine are a five-speed manual gearbox and a six-speed automatic; the smaller turbo has six-speed manual and automatic options. The base engine with five-speed is EPA-rated at 26 mpg city, 35 mpg highway, for a combined rating of 29 mpg, which isn't particularly stellar.

The optional 1.4-liter turbo has already hit the magic 40-mpg highway mark, however. The version fitted with the six-speed manual gearbox is rated at 29 mpg city, 40 mpg highway, and 32 mpg combined..

There are three trim levels--LS, LT, and the high-end LTZ--and the base Sonic LS sedan starts at $13,735, plus a mandatory delivery fee of $760.

Tell us what you'd like to know about the 2012 Chevy Sonic below, and we'll respond both in our drive reports and directly to your comments.

Source: Green Car Reports

Introducing the 2012 Chevrolet Sonic with Test Drive

General Motors is no longer giving its fuel-efficient small cars short shrift. After much of a day behind the wheel of the new 2012 Chevrolet Sonic earlier this week, in the San Francisco Bay area, we found the 2012 Chevrolet Sonic to be fuel-efficient, comfortable, and in 1.4T form, the most refined model in this class, and one of the most engaging to drive.

With an all-new global platform, the new 2012 Chevrolet Sonic is a completely different car than the Aveo it replaces. While the Aveo was one of our lowest-rated cars, with sluggish performance, subpar safety, and disappointing gas mileage, the new Sonic's platform is stiff and rigid, with nearly 60 percent high-strength steel; and its powertrains—a naturally aspirated 1.8-liter and a turbocharged 1.4-liter—are poached directly from the Cruze compact sedan.

Perkier than Cruze, but no Eco

Since the Sonic weighs a few hundred pounds less than the Cruze, that translates to a perkier driving feel. Both engines make 138 horsepower, but the available 1.4T produces more torque, much lower in the rev range. The Michigan-made 1.4T also feels smoother and quieter; the 1.8-liter model moves nearly as quickly, but it becomes boomy when pushed.

Fuel economy is another reason to opt for the 1.4T—a $700 option on most of the lineup. While lower-level Sonic models with the 1.8 will return 25 mpg city, 35 highway with the new six-speed automatic or 26/35 with the five-speed manual (perhaps the only carry-over from the Aveo), the Sonic gets a much better 28/40 with its new six-speed manual. And it's expected to also hit 40 mpg on the highway with the 1.4T and six-speed automatic, a combination that will be out late this calendar year.

What's not part of the lineup at this point is a Chevrolet Sonic Eco. And, according to Chevrolet officials, it likely won't be part of the lineup.

Why? At higher speeds, shape matters more than weight, to some extent, and shorter cars the Sonic's length (particularly the shorter hatchback) have less favorable aerodynamics than longer ones at highway speeds. So even though the Cruze is several hundred pounds heavier, it was easier to get that 42-mpg highway rating out of the Chevrolet Cruze Eco than it would be to meet that figure in a Sonic Eco.

Promising mpg—especially from 1.4T

What we saw in our first extensive drive, in the San Francisco Bay area this past week, was promising. In driving that wasn't very eco-minded—stop-and-go through S.F., then out Highway 1 and into the mountains above Half Moon Bay and near Santa Cruz, we saw about 28 mpg in an automatic 1.8-liter car. Then on a similarly twisty route, down then back up along Skyline Drive, and along Bay Area freeways, we averaged 33 mpg in a 1.4T Sonic.

Part of what makes the 1.4T return such good numbers, we suspect, even when you're driving rapidly, is that its electronic throttle is programmed to dull (or smooth, to use a kinder word) the engine's response when you rapidly dab in. We also noticed that when you're below 3,000 rpm—as you should be most of the time, as a mileage-minded driver—there was noticeable turbo lag of a full second or two. Once you learn to 'trick' the system a little bit—by pressing a little harder, and letting up when the boost comes on—the Sonic becomes more fun to drive, and we liked its well-weighted electric power steering and well-tuned suspension.

It's no enthusiast setup, but it's far more charming on a twisty road than you're likely to suspect—and just a frugal 1.4-liter the rest of the time. And adding to the ride, handling, and refinement is that alloy wheels are standard across the model line—quite the value in a cheap subcompact.

Well-designed, cosmetically and functionally

The Sonic's interior is also very well designed, with space enough for four adults, provided none are much over six feet tall. Seats are far more comfortable than the dreaded perches in the Aveo, and we took a liking to the instrument panel, which includes both a swoopy, wrap-around look combined with a straightforward, V-shaped center stack. Then there's the motorcycle-inspired gauge cluster, with its digital speedo and big sweeping tach.

About the only part of the Sonic's package that we didn't end up liking so much was the hatch's rather high cargo floor, which looks very space-inefficient next to the Honda Fit. But there is a 'hidden' compartment under the rearmost cargo area, good enough for a laptop bag. Cargo space in the Sonic sedan is jaw-droppingly good, though; a colleague called it a two-body trunk.

Overall, based on our short first drive, we can say that the Cruze was no fluke. The new Sonic catapults GM toward the head of the subcompact class, too, with a stylish sedan and hatchback that feel smart and sensible—and not nearly as cheap as they're priced.

Source: Green Car Reports

2012 Chevy Sonic with 1.4L Turbo delivers 40 mpg on highway

2012 Sonic. Click to enlarge.

The 2012 Chevrolet Sonic with the Ecotec 1.4L turbo delivers an EPA-estimated 40 mpg US (5.9 L/100km) on the highway with a six-speed manual transmission and city fuel economy of 29 mpg (8.1 L/100km), resulting in 33 mpg US (7.1 L/100km) combined.

The Sonic’s highway fuel economy makes it one of the most fuel-efficient small cars in the market, with fuel economy equivalent to the 2012 Ford Fiesta SFE and on a par with the 2012 Hyundai Accent. (The Accent is EPA rated at 30 mpg city and 40 on the highway). Along with achieving 40 mpg, the 1.4L turbo Sonic can reach 60 mph in 8.2 seconds.

The Sonic’s 1.4L Ecotec turbocharged engine is SAE certified at 138 horsepower (103 kW)—18 hp (14 kW) more than Ford Fiesta and is essentially the same engine used in the Chevrolet Cruze in a smaller, lighter package designed for a greater feeling of performance. The turbo engine is also rated at 148 lb-ft (200 N·m) of torque between 2,500 and 4,900 rpm.

The wide rpm range for the maximum torque—a specific trait of turbocharged engines—helps the engine deliver a better driving experience and performance. Premium design elements give the engine smoothness and durability. Features include:

• Low-mass hollow-frame cast iron block;
• Dual overhead camshafts with continuously variable valve timing;
• Chain-driven cams;
• Roller-finger camshaft followers;
• Piston-cooling oil jets and integrated oil cooler;
• Variable-flow oil pump; and
• Electronically controlled thermostat.

The 1.4L’s turbocharger is integrated within the exhaust manifold, for reduced weight and greater packaging flexibility. A reinforced crankshaft and stronger connecting rods deliver additional strength to support the engine’s pressurized power and torque over a wide rpm band.

The Sonic’s 1.8L manual delivers fuel economy of 26 mpg city (9.0 L/100km) and 35 mpg highway (6.7 L/100km) and the automatic gets 25 mpg city (9.4 L/100km) and 35 mpg highway.

The Sonic is the only sub-compact car currently built in the US. Production began earlier this summer at General Motors Orion Assembly facility in Lake Orion, Mich.

The suggested retail price of the Sonic begins at $14,495 including destination but excluding tax, title, license and dealer fees.

Source: Green Car Congress

Report: Production of 2012 Chevrolet Sonic underway

2012 Chevrolet Sonic – Click above for high-res image gallery

Back in late June, Automotive News (sub. req.) reported that a contract labor strike at General Motors' Orion Assembly Plant could potentially affect the August launch of the 2012 Chevrolet Sonic. At the time, GM spokeswoman Kim Carpenter eased fears of delayed production, saying the automaker didn't expect the issue to push back the vehicle's launch. Lo and behold, Carpenter was spot on.

AN reports that production of the 2012 Chevy Sonic is underway and that the subcompact will hit dealer lots this fall. Jokingly, Kenneth Knight, General Motors' executive director of global and North America manufacturing engineering, told conference-goers in Traverse City, MI that the Sonic's launch must be going as planned "because my phone isn't ringing off the hook."

The $14,495 2012 Sonic checks in with an estimated fuel economy rating of up to 40 miles per gallon out on the open highway, but will have to duke it out in the competitive subcompact segment against players like the Ford Fiesta, Honda Fit, Toyota Yaris and Nissan Versa,



Source: Autoblog Green