Chrysler Withdraws Request For $3.5 Billion In Loans From Department of Energy

Derek Kreindler
by Derek Kreindler
chrysler withdraws request for 3 5 billion in loans from department of energy

Chrysler alerted the Securities and Exchange Commission that they’d be withdrawing their request for as much as $3.5 billion in loans. The money was to be used for the development of unspecified “green” vehicles.

The Advanced Technology Vehicles Manufacturing program, passed by Congress in 2007, helps automakers their current plants to build more fuel efficient vehicles. The program is worth as much as $25 billion in total. Chrysler CEO Sergio Marchionne was on record expressing frustration at the speed of the loan application, stating that it put Chrysler in a ” very, very uncompetitive position”.

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  • Lorenzo Lorenzo on Feb 18, 2012

    There's not just no market for EVs, developing one takes additional resources, especially engineering talent better employed to work on new models. Add in the prospect of technical glitches generating cost overruns and dealing with government bureaucracy monitoring the effort, setting up progress mileposts and involving engineers and designers in interminable meetings, and it's just not worth the effort. State and local governments are used to the strings attached to federal money, but those strings can strangle a for-profit company.

  • John John on Feb 19, 2012

    Umm good luck getting a loan for making green vehicles when your cars are red.

  • Herm Herm on Feb 19, 2012

    Chrysler punted out of making hybrids for the next decade.. then again they could always go the low cost route and duplicate GM's eAssist. It all depends on what the price of gasoline will be.

  • Pgcooldad Pgcooldad on Feb 19, 2012

    Well here is an interesting fact. FIAT already has a vehicle that gets better gas mileage than a Toyota Prius and it's not a hybrid. The question is, if they brought it to the USA would Americans buy a two-cylinder vehicle. The TwinAir engine is an inline turbocharged two-cylinder engine that puts out 85 horsepower at 5500 rpm and 107 foot-pounds of torque at 2000 rpm. According to "the Punto TwinAir gets 48 miles per gallon in city driving; 61 miles per gallon on the highway for a combined rating of 56 miles per gallon. That’s within 5 city miles per gallon of the Toyota Prius C, the highest-rated non-plug-in hybrid. On the highway and in combined driving cycles, the Punto beats the Prius which gets just 48 miles per gallon on the highway and 50 miles per gallon combined. The Punto TwinAir also beats the Prius in greenhouse gas emissions: the Prius pumps out 173 gm of carbon dioxide per mile; the Punto produces just 159 grams per mile. The TwinAir also meets Euro 5 emission requirements."

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    • 84Cressida 84Cressida on Feb 21, 2012

      Those are the European estimates. I guarantee you it will rate lower than a Prius when the EPA tests it along with all the updates it will need to pass US safety regs.