DOE Loans In The Works For GM, Chrysler

doe loans in the works for gm chrysler

Officials working with the Department of Energy tell the Detroit News that GM and Chrysler face no major obstacles in their quest for huge retooling loans from the DOE’s Advanced Technology Vehicle Manufacturing Loan program. GM is seeking $14.4b and Chrysler has asked for $8.55b in low-cost government loans. Says Matt Rogers, a senior adviser to the Energy Department

Project finance details need to be worked through, but those things are working out just fine as we work directly with the companies. It’s really a process of making sure that each of the projects that they have are in fact competitive.

Er, competitive compared to what?

As former Tesla Marketing boss (and frequent ATVML critic) Darryl Siry puts it:So the guys from the DOE and Booz Allen Hamilton or AT Kearny are trying to judge whether the series hybrid Chevy Volt will be competitive? It certainly will be disadvantaged if you don’t fund it. Why? BECAUSE YOU FUNDED THEIR COMPETITION. Now that you have screwed up the natural forces of the marketplace, the DOE must provide equivalent support for the Volt program and let them compete on a level playing field with Nissan, Ford and even Tesla and Fisker.And he’s right: All four firms he mentions have received money from the ATVML program, despite qualifying for unproven products. Besides, viability of the Volt program was never the main problem with GM’s bid for DOE loans. The big hangup was a financial viability clause, that GM now undoubtedly passes, having received tens of billions of dollars in direct taxpayer support. If you’re going to help GM over the financial hurdle, why pretend that the Volt’s viability is an issue? Especially when the presidential task force on autos already ripped into the Volt’s chances pre-bailout, only to come to swing back in favor of Chevy’s hail mary.We’ve known that GM needs this money since last summer, and we’ve contacted the DOE several times trying to follow up on the status of GM and Chrysler’s loan applications. Why this whole process has been so shrouded in mystery is hard to understand, and this secrecy is more than a little troubling considering the impact these decisions have on the industry. But then, that bridge was crossed when the bailout happened… why the DOE is wasting time pretending that it might not give GM and Chrysler the cherry on top of their bailout is tough to fathom.
Comments
Join the conversation
2 of 7 comments
  • Geozinger Geozinger on May 15, 2010

    Does anybody else find the picture for this post a little disturbing? I'm glad to see it isn't what I thought it was at first glance... No wonder why that Lesko guy is so freakin' happy all of the time...

  • Chonralda Chonralda on May 16, 2010

    The end of that ad was just a bit too trippy for me...

  • Fred This owner likes the odd ones as it looks like Triumph Stag in the garage.
  • Bwell Glad to see Crosley getting his due. Maybe not a genius but a great innovator. It's a shame that his company, which was hugely successful, just sort of faded away.One quibble - UC is not in College Hill but in Clifton, or more properly University Heights.
  • JMII "Some U.S. automakers have even begun considering bringing back discounts and incentives which were scrapped during the pandemic as supply constraints became a major issue."If sales drop off then this is the cure. Economics 101. Its about time people realized that paying over MSRP is stupid. I have held off purchasing a new vehicle for almost a full year now due to current conditions.My wife would love to have an EV but at current prices its just not happening. However the same is true for ICE vehicles. Vehicle prices are just too high overall right now and our current fleet continues to function perfectly so we see no reason to upgrade. I could careless what the Jone's down the street do or think.
  • TheEndlessEnigma More Ferrari "quality".
  • EBFlex This is not news. People don’t want autonomous vehicles just like they don’t want EVs. Both are unnecessary and dangerous.
Next