Chevy Volt problems may have been deferred by NHTSA to protect "fragility of Volt sales" – FOIA demands launched

Here’s an interesting BBC story about the safety hazards associated with the Chevy Volt — specifically, the risk that its battery pack could catch fire after even a minor impact.

But the real problem may no longer be a technical one, but one of dented consumer confidence. Customers are handing back the keys in droves.

At first, when the problem first came to light, chief executive Dan Akerson offered to buy back Volt models from any concerned customers.

Then, when dozens of customers came forward wanting to hand back the keys to their cars, the company changed tack.

Rather than automatically buying back the Volts, and thus losing its as yet tiny army of early adopters of electric motoring technology, GM started offering them some 6,000 free loan cars while awaiting the outcome of an investigation into the fires.

And here’s why:

It now appears the fire hazard was first discovered back in June, when GM first heard about a fire in a Volt that occurred some three weeks after the vehicle had been crash tested.

Yet, almost five months went by before either GM or the US National Highway Traffic Safety Administration (NHTSA) told dealers and customers about the potential risks and urged them to drain the battery pack as soon as possible after an accident.

Part of the reason for delaying the disclosure was the “fragility of Volt sales” up until that point, according to Joan Claybrook, a former administrator at NHTSA.

“NHTSA could have put out a consumer alert,” he said, according to industry website Autoguide.com.

“Not to tell [customers] for six months makes no sense to me. They have a duty to inform people when they’ve rated a vehicle as ‘top rated’ and make it clear there’s a problem.”

While it isn’t surprising that GM was reluctant to announce product safety bulletins that would dampen early sales of its much touted hybrid, according to the linked story the NHTSA was an accessory to this as well, and for the same reason:

“Part of the reason for delaying the disclosure was the ‘fragility of Volt sales’ up until that point, according to Joan Claybrook, a former administrator at NHTSA.”

At Autoguide.com, there’s a story saying that Transportation Secretary Ray LaHood responded today saying the accusations were “absolutely not true.”

“We have opened an investigation into battery-related fires that may occur some time after a severe crash,” LaHood said. “Chevy Volt owners can be confident that their cars are safe to drive.”

Meanwhile, the National Legal and Policy Center (NLPC) filed a formal request under the Freedom of Information Act (FOIA) with the National Highway Traffic Safety Administration (NHTSA) for any and all communications with General Motors (GM).

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December 21, 2011 8:00 am

Mr. Practility says on December 18, 2011 at 2:59 pm
..
1) ExxonMobil made …
2) Bank of America …
3) Over the past five years, while General Electric made …

Justifying additional giveaways, grants and overall corruption of the ‘system’ by justifying actions regarding ‘The Volt’? Your prescription for ‘more of the same’ is laudable, but does not paint you as the ‘green saint’ re: ‘The Volt’ as you might desire.
We all think you’re perverting the truth, lying by omission and outright perhaps don’t comprehend ‘finance’, taxing and credits to begin with, so please, save any form of reply or ‘rebuttal’.
.

December 21, 2011 8:10 am

Smokey says on December 21, 2011 at 7:00 am
Volt subsidies: a quarter million dollars per car sold.

You beat me to it <grin> .
The take-away for the ‘defenders’ of such grants and subsidies would do well ti note that the subsidies extend to suppliers and sub-contractors for parts and sub-assemblies on ‘the Volt’, NOT just to subsidies etc refunded or credited to the end-buyer … of which a large percentage were ‘forced’ (arbitrary government decided) fleet sales
Fair-use (Copyright) extract in case the original article goes away:

The Volt subsidies flow through multiple companies involved in production. The analysis includes adding up the amount of government subsidies via tax credits and direct funding for not only General Motors, but other companies supplying parts for the vehicle.
For example, the Department of Energy awarded a $105.9 million grant to the GM Brownstown plant that assembles the batteries. The company was also awarded approximately $106 million for its Hamtramck assembly plant in state credits to retain jobs.
The company that supplies the Volt’s batteries, Compact Power, was awarded up to $100 million in refundable battery credits (combination tax breaks and cash subsidies). These are among many of the subsidies and tax credits for the vehicle.

GM has estimated they’ve sold 6,000 Volts so far. That would mean each of the 6,000 Volts sold would be subsidized between $50,000 and $250,000, depending on how many government subsidy milestones are realized.

Additional state and local support provided to Volt suppliers was not included in the analysis, Hohman said, and could increase the level of government aid. For instance, the Volt is being assembled at the Poletown plant in Detroit/Hamtramck, which was built on land acquired by General Motors through eminent domain.

According to GM CEO Dan Akerson, the average Volt owner makes $170,000 per year.

.

Justa Joe
December 21, 2011 8:53 am

Mr. Practicality,
Do you have any appreciation that there is a difference between a government through tax code limiting how much that they collect from a viable business and the government taking tax funds and handing them to their pet industries that are not even viable?
Advanced Technology Vehicles Manufacturing (ATVM) Loan Program is a $25 billion direct loan program funded by Congress in fall 2008 to provide debt capital to the U.S. automotive industry [incl. Nissan] for the purpose of funding projects that help vehicles manufactured in the U.S. meet higher mileage requirements and lessen U.S. dependence on foreign oil.
http://en.wikipedia.org/wiki/Advanced_Technology_Vehicles_Manufacturing_Loan_Program
Electric car grants worth $2.4 billion unveiled
Administration names 48 projects to get funding to develop batteries, parts and programs.
http://money.cnn.com/2009/08/05/technology/batteries/index.htm

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