Republican leaders in the House of Representatives are proposing to halve the balance of a U.S. government loan fund which was set up to aid the automobile industry in developing more fuel-efficient vehicles.
If the plans to transfer some $1.5 billion from the Energy Department advanced technology fund to disaster assistance will be pursued, serious concerns would arise regarding the capability of Chrysler to fully capitalize on its bid for new financing.
The vehicle manufacturer, which is run by Italy-based Fiat S.p.A., has already refinanced its bank debt. It has also been working with the administration of Obama this 2011 to finalize terms of its $3 billion application for technology loans, according to Reuters.
House Republican Leader Eric Cantor stated that the government has to prioritize spending, including determining unspent funds to assist in meeting current needs. Cantor further stated on the House floor that the facts have to be faced and that the federal government must be stopped from spending money it does not have.
He also disclosed that the money has been lying around since September 2008. On the other hand, Steny Hoyer, Cantor's Democratic counterpart stated that the loan money was ticketed to help create jobs in the vehicle market.
Without mentioning Chrysler's loan application, Hoyer asserted that if this particular fund is targeted, one is targeting a fund that has provided jobs in America.