It's like the rancor of 2012 has come back to haunt us, but with a twist. In this case, 2012 is a model year of Volts coming off lease losing an estimated 65 percent of value.

With a photo of a Volt with open hatch and fire in the rear cargo area (not shown below), an old friend of the Volt added to a long history of diatribes against “President Obama's favorite, green wonder-car.”


 

Mark Modica of the National Legal Policy Center’s piece is titled, “COLOR ME SHOCKED: Chevy Volt Resale Values Plummet as Lease Returns Hit Market.”

“GM was able to use taxpayer money in the form of electric vehicle tax credits to help drive down costs to lessees,” wrote Modica. ”Taxpayers chipped in $7,500 for each Chevy Volt placed on the road for terms as low as two years. The taxpayer subsidies, along with inflated residual values and other GM incentives, provided for low monthly lease payments and led to a full two-thirds of all Volt 'sales' being attributed to leases. That's about three times the lease rate for the overall industry.

“So, what happens to resale values of vehicles with little mass appeal that are forced upon the public with subsidies and manipulated leases? The result was predictable; those leased vehicles are now being returned and resale values are plunging,” he wrote.

Modica surmised that makes everyone who has actually purchased a Volt a loser as their cars are worth a fraction of what they paid. Lessees may have gotten a deal at taxpayer expense for the democratically forced crony capitalistic boondoggle, but so it goes, he essentially said.

His cheery and objectively measured piece continued:

“A search on the Manheim auction site, a primary indicator of vehicle wholesale value, shows that 81 Chevy Volts, model year 2012, were sold at auction for the week ending August 2nd. The average price was $14,871 for vehicles that are only two or three years old, primarily coming off of the manipulated leases. That equates to an absurd loss of values for Chevy Volts of about 65% in only two or three years.”

Ouch! So much for “a free market devoid of political intrusion.”

“The wonder-car was to save us from terrorism and global warming all at once!” he added. “The management at GM was, and still is, reluctant to admit that the Volt has been an utter failure.”

This latter statement is true, in fact GM’s Kevin Kelly told us yesterday Volt Gen 2 is definitely slated for a reveal in January, though naturally he did not spill the beans.

And, Modica concedes as much, saying he does not expect GM to back down from “money-losing green vehicles like the Volt.”

Further, Modica said, there will be some winners, including anyone who buys a cheap low-mileage super depreciated Volt.

2011

What do you think? As an “NLPC Associate Fellow,” does he have some points? Or not?

Does Gen 2 need to be more than a refresh? Will it be? We've seen confident-sounding reports saying what to expect and maybe they are right, but who knows?

GM does. And. it’s faced the music for over four years. Do you think it would like to put critics to silence?

What will it take for GM to shake hate for Government Motors and the Volt?

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