LAST AUTO NEWS – GM, CHRYSLER DENIED FEDERAL GREEN CAR FUNDING
Last Auto News –
Before the federal government continued any bailout aid to automakers in the endure canicule of the Bush administration, Congress set abreast $25 billion in allotment to advice automakers advance added fuel-efficient cars. Proponents of the admeasurement argued, at the time, that it would advice America’s Big Three automakers retool to become aggressive in a bazaar that had angry abroad from trucks and SUVs. Projects like the Chevy Volt and Chrysler’s planned apartment of electric cars, they argued, could advice change the fortunes of America’s auto industry.
If alone the companies able for the loans.
The Washington Post reports, “Next month, $25 billion in loans aimed at bearing added fuel-efficient cars will alpha abounding to suppliers and automakers — just not to the two companies a lot of in charge of funding, General Motors and Chrysler.” The Post letters that 75 companies activated for allotment beneath the accommodation program, and federal admiral accept now adopted that accumulation of applications down to just 26 that will be considered. Neither General Motors nor Chrysler were a part of the finalists. The accommodation program, administered by the Administration of Energy, “Dictates that companies have to be ‘financially viable’ to accept the loans. And endure week, the Obama administering disqualified that, at atomic for now, both GM and Chrysler cannot accommodated that benchmark.”
The Detroit Free Press reports, “That agency Ford Motor Co. may be the alone Detroit automaker that qualifies for the aboriginal annular of loans, which Energy Secretary Steven Chu has said would be accepted by May.” Ford had requested $11 billion in aid to advice advance added fuel-efficient cars and re-tool plants to body them. GM, meanwhile, had asked for $10.3 billion, Chrysler for $6 billion.
General Motors hasn’t accustomed up on acceptable some of the funding. GM agent Kerry Christopher told the Post, “We don’t see this as a abnegation of our application,” but instead, a account that “until the assurance that we’re a applicable aggregation can be made, we’re not traveling to be accustomed the loans.”
GM Vice President of Research and Development Larry Burns told Reuters, “Treasury wants to absolutely accept what our ultimate afterlife is afore giving us that (DOE) loan.”
Asked for comment, Energy Administration backer Stephanie Mueller told the Post that “the administration could not animadversion on alone applications.”
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