Bailout Watch 153: Subaru and Nissan Applying for D.O.E. Loans

bailout watch 153 subaru and nissan applying for d o e loans

The Senior Director of Communications for the Alliance of Automotive Manufacturers has revealed that Subaru and Nissan are applying for Department of Energy’s (D.O.E.) low-interest loans. As TTAC reported earlier, the just-released rules for the loans do NOT contain a provision limiting calls on the $25b available to American factories twenty-years-old or older– as originally thought. The door is now open for any automaker with operations within these United States that thinks it can build a vehicle that’s 25 percent more fuel-efficient than a comparable model. “For competitive reasons, I would think that any elegible automaker would apply for the loans,” Charles Territo told TTAC. “You can’t write anyone off.” That said, if the D.O.E. rules are enforced as written, you CAN write off GM and Chrysler; they don’t meet the regulations’ criteria for financial viability. Territo expressed confidence that Detroit’s automakers will “figure out a work around” for that and other stipulations. “It’s Washington. Where there’s a will, there’s a way.” Territo’s organization is also supportive of the next bailout: another $25b to $50b aimed at improving American automakers’ liquidity. “A failure will cost more than a bailout,” Mr. Territo opined, declining to provide statistics to justify the claim.

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  • Ireallylovemangoes Ireallylovemangoes on Nov 07, 2008

    Mikey, don't YOU work for a foreign car company? I mean, you're up here in Canada, right?

  • Bertel Schmitt Bertel Schmitt on Nov 07, 2008

    Well said, John Horner

  • Snabster Snabster on Nov 07, 2008

    well, if they want to be clever they could target the high value components inside a car, and make sure those are being built in the US. Or at least designed. Electronics, control systems, batteries? Not sure what they are in a hybrid/high-mileage vehicle. I can't imagine engines are high value anymore.

  • AJ AJ on Nov 07, 2008
    dpeppers : November 6th, 2008 at 9:29 pm You’re acting like this is a surprise. I’m taking all your comments with a grain of salt. I was told in a luncheon meeting by a big 3 higher up that all domestic producers were eligble for the 25 that earmarked more than a year ago (just funded this year). This site needs more than just pandering to the “bankrupt the 2.8″ crowd. The whole not with my money routine gets old. Any deduction given to you is taken and probably more. It's not that I want to see the 2.8 bankrupt, I just don't want to encourage bad companies from not improving themselves and competing as they should since this is America (plus as well to break unions that support socialist politicians). What we need are more manufactures like Honda. It shouldn't matter where investment money comes from (as said above). Frankly if I had a billion dollars to invest, I certainly wouldn't do so with anyone tied to the UAW. I'll also say that as a Jeep guy, I will never again buy any more UAW built vehicles. The Big 2.8 needs to be set free. Of course I'm sure the UAW will be receiving pay back from the Messiah and Ms. Pelosi for their votes. (sigh)

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