Chrysler, GM line up for more government loans
Chrysler and General Motors are reportedly set to receive up to $16 billion in low-interest federal loans to be used toward retooling aging factories. This round of loans comes from a 2008 allotment granted to the United States Department of Energy.
A senior adviser to the DoE says that the department has been "quite engaged" with groups representing both automakers. The loans are part of a $25 million program funded by Congress back in 2008; just $9 billion has been handed out so far, leaving about $16 billion remaining.
Of that $16 billion, GM has applied for $14.4 billion and Chrysler has asked for $8.55 billion. Previous recipients have included Ford ($5.9 billion), Nissan ($1.6 billion), Tesla ($465 million), Fisker ($529 million) and a number of auto suppliers.
"Project finance details need to be worked through, but those things are working out just fine as we work directly with the companies," DoE spokesman Matt Rogers said. "It's really a process of making sure that each of the projects that they have are in fact competitive."
The loans are to be used for retooling existing plants to produce either greener vehicles or the parts necessary to make more fuel-efficient vehicles. Plants need to demonstrate that they are replacing old methods with more efficient plans in order to be granted the DoE's funding.