Industry Analyst Claims New Chevy Bolt Is Just A Tool To Make More Gas Guzzlers

Another industry analyst is supporting the thesis that GM’s Chevy Bolt EV is a compliance car aimed at accumulating ZEV credits to allow the Michigan-based automaker to continue selling its profitable gas-guzzling vehicles. After meeting with GM CFO Chuck Stevens last week, JP Morgan analyst Ryan Brinkman released a note to clients claiming that the Bolt EV is part of an “improving array of electric vehicles from automakers which are pricing such vehicles with the aim not to turn a profit but rather to sell in sufficient volume to subsidize the rest of their more lucrative portfolios of internal combustion engine vehicles from a regulatory compliance perspective.”
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HoustonMidtown - 12/22/2016 1:17:33 PM

0 Boost

Bush did the bail out....Obama just signed it

TomM - 12/22/2016 8:46:03 PM

+2 Boost

If current California Law did not include the requirement for non-polluting vehicles - the demand for EV's would not exist. Currently - the low cost of gasoline has made EV's too expensive to justify for the most part - along with the increased efficiency of newer ICEs. Now - a number of european cities have laws that will ban all but EVs -from city roads. However - as in Europe where they are willing to pay more money for smaller vehicles - I doubt that the countries will offer major tax incentives. But the California situation was the spark the fueled the industry. And at the very least - there has to be some Entry Level cars that will be even more affordable than the Bolt.

MrEE - 12/22/2016 9:19:38 PM

+3 Boost

In addition LG received big incentives to build their US battery plant.

MrEE - 12/23/2016 6:13:37 AM

+3 Boost

No different why GM was first to widely roll-out Flex-fuel. All due to the structure of CAFE. Would be more effective to require minimum efficiency.