GM Confirms Chevy Volt Tax Credit Abuse

On Monday, I revisted my Chevy Volt story on Eric Bolling’s “Follow the Money” show on Fox Business Network. Here’s a transcript:

Eric Bolling: It is the story you saw here on “Follow the Money” first our friend Mark Modica, first broke the story that car dealers were selling the Chevy Volt as used and claiming thousands in tax credits for themselves. Now the LA Times is following the money and confirming the story with us now from the National Legal and Policy Center is Mark Modica. Also joining us on the panel is attorney Joe Jackson. Mark go ahead boy, you are being vindicated by the LA Times but thank you for breaking story right here on “Follow the Money.” Tell us about it.

Mark Modica: Thank you and thanks for breaking it on your show. Yeah, we ran the story, and basically the story was that dealerships are buying the Volts, taking tax credit and then reselling them as used. So, a very simple story, and after it started getting a lot of buzz, there were some from some sites that automatically said that this was one article said, haters to the right, they accused us of being right wing hating green automobiles and saying that this is not an issue. But then, there has been more than one story that did vindicate us, and showed that this is happening, including comments from GM, Chevy Volt spokesperson, Rob Peterson.

Eric Bolling: What did he say? What does GM say? What does GM say and how do they respond to your accusations?

Mark Modica: Well, they are basically saying that they can’t control the dealerships, and they can’t speak for the Treasury and the IRS with the tax form, but that this is happening. It is not very widespread what they are happening but any instance is a problem.

Eric Bolling: Do you want to know something? They don’t know how widespread it is. How is that?

Mark Modica: That is correct.

Eric Bolling: They have no idea how wide spread it is. It could be happening in ever community across America. Mark, hang in there if you don’t mind. Stay with me for a second.

Mark Modica: Sure.

Eric Bolling: Joey, here is a situation where dealers trade titles. They are saying take the car and give it back to me later. Here is the title. I will take that seventy five hundred dollar tax credit while you are at it. Thank you very much. Not only that, they are inflating the Chevy volt sales figures as well.

Joe Jackson: That is a problem. Look, Eric, in the law we deal with facts, we deal with proof and we deal with evidence. If in fact it turns out as it seems it is, this is going on no type of fraud, waste and abuse, this is what the show is about. It should be uncovered. It should be out there. To the extent that it was exposed, I give kudos to them.

Eric Bolling: Let me understand you for one second. I know you guys want to get in, but here it is another Obama proposal, another plan give money to people without any strings attached. Without any hey by the way if we give you this you are going to have to prove you are going to be using it the right way.

Joe Jackson: Here is my only problem with that, Eric. You know, there does need to be strings attached to things, but then you do that, you talk about government regulating, big government. We have more people and analysts. ..

Eric Bolling: I didn’t say regulation. I said we’ll give you the money, you have got to prove to us you use it the right way.

Joe Jackson: But Eric if you do that, you have to oversee it, you have to analyze it and you have to look at it, that look like big government.

Andrea Tantaros: Do you know how many people are working on Barack Obama’s payroll right now? There is a car czar. There is a Department of Commerce. There are so many people in Washington pushing paper around you would think they would designate one to watch our money. This happened with cash for clunkers. It happened with the stimulus. It happened with the housing plan.

Bo Dietl: Woah, Joey, you know when they say that the manufacuturer General Motors has no control, that is nonsense. These are dealers. They are getting the cars.  If they don’t abide by the way it is supposed to be they shouldn’t give them any cars.

Eric Bolling: Hold on Joe. Bo is very right. He is a hundred percent right. I did this. I worked with another dealership organization. If the dealer is violating the rules, if they are not doing business ethically, you can yank that dealership? Can you not Mark?

Mark Modica: Sure, you know, there is franchise agreements, and GM I think does have an obligation to oversee what their dealers are doing. Particularly that GM has a lot of taxpayer money already. I think they already have an obligation look out for the taxpayers to say let’s not have more taxpayer waste. A couple of simple fixes here. Treasury just has to fix the form. For one thing, there is no identifier on there to put a VIN number to actually show that you got the actual car you say you do and take the credit. So let’s get the form fixed and get the VIN number on there and that is half your battle right there. The other part is there is some confusion as to whether these dealerships should actually be getting this credit because the tax credit is not supposed to be for anyone selling the cars.

Eric Bolling: Bingo. Hello. The tax credit shouldn’t go to dealers. It is supposed to be for consumers. Real quickly, Joe.

Joe Jackson: It should be, but is this Obama’s fault?

Bo Dietl: Of course, it is. It is his program.

Joe Jackson: Look, there is kindness in the human spirit and there is the seeds of evilness and fraud.

Bo Dietl: It is the responsibility. We gave all that money to General Motors, it is the responsible of the President and the President’s people to make sure that people get the discount not the damn car dealerships.

Eric Bolling: All right. All right. Thank you very much to Mark Modica. Mark, if you uncover any more deals let us know, we will put you on.


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