U.S. Department of Energy gets complaints due to delays in loan approvals

Article by Christian A., on January 30, 2011

Since the $25 billion Advanced Technology Vehicles Manufacturing Loan program was launched in September 2008, the Department of Energy has awarded less than $8.5 billion.

This is why automakers, suppliers, start-up companies and members of Congress have become frustrated that the government has not distributed billions of dollars in loans meant to develop the next generation of clean, fuel-efficient vehicles. More than 100 applicants initially requested about $42.7 billion from the program.

In fact, some applications for the low-cost government loans that were submitted two years ago have not been approved. Several projects have collapsed and some small companies are hanging on to the hope that the money arrives in time. Some loans take seven months more to close after getting approval.

John D. Thomas, CEO of ALTe LLC, which has applied for a loan, said that some entrepreneurial startup companies are hoping to stay alive just long enough to receive the loan. So far, only four grants have been completed.

Ford Motor Co. sought $11 billion but closed on a $5.9 billion loan in September 2009. In January 2010, Nissan Motor Co. was granted $1.4 billion.

Tesla Motors secured $465 million in January 2010 to produce electric vehicles. Fisker Automotive Inc. was awarded a $529 million loan in April to retool a former General Motors Co. factory in Delaware. [via autonews - sub. required]

Topics: united states, loan

If you liked the article, share on:

Comments

Recommended

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries