GM, Chrysler blocked from Energy Department loans, Ford seeking $11 billion

[Sprint XR8]

General Motors and Chrysler have been blocked from receiving a share of the $25 billion loan program set up by the Department of Energy to provide a low-interest loans for alternative energy vehicle development. Meanwhile, Ford is said to be seeking $11 billion from the program. Under the legislation that authorized the program, only “financially viable” companies may receive loans.


Interestingly, the $25 billion was set aside long before GM or Chrysler went to the U.S. government to be rescued. In fact, the program predates the financial collapse of late 2008, and was actually established much earlier in the recession.

Because Ford has not received any “bailout” money from the U.S. government, it can be considered “financially viable” under the rules. Other companies vying for a piece of the pie include battery maker A123 Systems, which is seeking $1.84 billion, and Tesla Motors, which is looking for $250 million.

Funds are expected to be dispersed in the next few weeks. Last week, President Barack Obama gave Chrysler 30 days to merge with Fiat, and GM 60 days to restructure or enter bankruptcy. If the two automakers “miss the boat” on the DEO loans, so to speak, it’s not known if they will get a second chance. For example, a portion of the money could be set aside until the companies’ ultimate fates are decided, but that’s purely speculation. GM is hoping to get $10.3 billion, while Chrysler wants $6 billion. A total of $44.6 billion in requests have been submitted by various companies.

“They can’t give us the loans until all other issues are worked out,” GM spokesman Kerry Christopher told the Detroit Free Press. She noted the DOE was working closely with the Treasury on the loan decisions.

http://www.leftlanenews.com/gm-chrys...1-billion.html

[Lukeyson]

interesting

[Ohio XB]

This program was passed early last year. They were first hoping to get funds by July, then by December. Still nothing. I don't know why the foot dragging.


Steve