High Voltage Stimulus For GM

America is bullish on electric cars. Or at least it will be once the Obama administration's $2 billion in grants for production of electric car components bears fruit. It seems that electric cars are perfectly feasible: the batteries, chemicals and capacitors needed are easily available. In China.

Obama's idea is to subsidize production of parts right here in the United States, thus providing a stimulus to battery manufacturers, car and truck manufacturers and the environment in one swoop. Added bonuses could include a boost to auto-related industries as well as an opportunity for the US to build its capacity to compete with Asian nations as a producer of electric cars and their parts.

To get a piece of the stimulus pie, most beneficiaries are required to put up a dollar-for-dollar cash match.

Not surprisingly, Ford, GM and Chrysler are all among the stimulus beneficiaries. For example, according to the New York Times, the Volt from GM will receive a large portion of the allocated funds: GM received $106 million for the production of battery packs for the [volt], which is planned for production next year and is supposed to go the first 40 miles each day on electricity and the rest on gasoline. GM will make the packs in Brownstown, Mich. In addition, GM received $30 million to build 125 Volts for electric utilities and 500 more for other consumers to use as a test fleet. That comes to nearly $49,000 a vehicle."

Smaller grants went to smaller manufacturers, with additional funds funneled to universities and colleges to train students in building and maintaining electric vehicles and their components. Perhaps most surprising, significant money also went to foreign firms, including Nissan, with manufacturing plants in the United States.

Photo courtesy of www.flickr.com via creativecommons.org.