No DOE ATVM loan money for GM and Chrysler
The same rules that could potentially end up keeping Tesla from qualifying for low interest loans from the Department of Energy Advanced Technology Vehicle Manufacturing Incentive Program are also keeping General Motors and Chrysler out of the running. In order to qualify for the loan program, an applicant must put up matching equity funds and demonstrate financial viability. Based on the Obama administration's evaluation of the automakers viability plans last week, neither company qualifies right now. At this point, Ford is the only automaker that has applied for the programs that would qualify. The first round of loans are expected to be awarded by next month. It's still possible that either or both of the automakers may get the money if some agreement can be reached between the Energy and Treasury departments. GM wants $2.6 billion to develop and tool up additional vehicles based on the Voltec platform.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 1)
Julius 10:31AM (4/08/2009)
Makes me wonder what the actual DOE loan was for, if we're excluding most automakers (and start-ups) from getting the money...
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Chris M 11:37PM (4/08/2009)
I'm guessing that the rules were put in place when that loan fund was enacted, to prevent money from being wasted by those who had an idea but didn't have any serious plans for production, and so that the money wouldn't be wasted by a firm going under that couldn't actually produce cars. Of course, the situation has changed drastically since the loan program law was enacted in 2007.
Considering that there is 44.6 billion in requests from a 25 billion loan fund, that means that few, if any, will be getting all that they asked for, and some won't get anything at all. In fact, considering that the "big 3" together have requested more than 25 billion, I suspect the Big 2 will get much less than they'd hoped for.
sp 10:59AM (4/08/2009)
It is to give a competitive advantage to companies that are already more successful than their competitors.
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Lad 1:58PM (4/08/2009)
As much as I like the TMC and their new Luxo sedan, I don't see the money properly used to build high dollar roadsters and sedans. If TMC could show solid plans to roll out a $20,000-$30,000 sedan built for the mass market, I think they would have a much better chance to receive the money bump. But, how they prove they are a good solid investment for tax funding by matching equity, is another matter.
As we all know by now: "it's the battery stupid." And, building a hundred TMC cars a month won't do much on the demand side to reduce the cost of advanced batteries. The cars and the batteries must be mass produced to lower the unit costs. At this point TMC is a niche car company building hand-made products.
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Tohe 5:42PM (4/08/2009)
In my view the DOE needs to work a compromise with these companies. I understand and support the viability restrictions. But the DOE has to go beyond the call of duty here. We need an orchestrated effort to put EVs on the road, not a point the finger game.
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Daron Gifford 8:56AM (4/09/2009)
the DOE legislation stated that companies applying for the advanced technology funds must be "financially viable without government assistance"...that was from late September 2008. So, in effect, GM and Chrysler became ineligible in December when they requested and accepted government bailout funds.
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