Industry News: Senators Slam The Energy Department’s Auto Loan Program

[William Maley]

William Maley

Editor/Reporter - CheersandGears.com

March 16, 2012

This week, Senators on the Energy and Natural Resources Committee criticized the Energy Department on their handling of the $25 billion Advanced Technology Vehicle Manufacturing initiative.

Created in 2007, the Energy Department has only given out less than half of the funds during the four years of existence. Only four companies have gotten their loans; Ford, Nissan, Fisker Automotive, and Tesla.

The Energy Department hasn’t given out any loans within two years and that has caused many companies to drop out.

Sen. Lisa Murkowski, R-Alaska, said many companies have expressed deep frustration about not getting a loan answer. She went onto say the program was "virtually dormant.”

Energy Secretary Steven Chu defended the handling of the program,

"We would like to see private equity invested in these companies," Chu said, adding the government wants to see evidence of private support.

Other senators on the committee wonder why the program even exist.

When leaving the hearing, Chu told reporters that the department was working with "many qualified applicants" to complete new auto and other green energy loans. When asked if any would be approved before the election, Chu said,

"There's no reason not to. The conditions of the program haven't changed."

Source: The Detroit News

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[G. David Felt]

SOB Politicians, does not matter what party they are from, they all want to use the programs as punching bags to get their butts back into office where they do nothing.

Very sad and pathetic lack of duty to America by the folks that should represent us and cover core repsonsibilities. This does not include giving everything to everyone.

[loki]

research has shown that $1 of gov investment displaces ~$1.25 of private investment. now, if you support science, which one sounds better, your tax money at work, or someones own interest in progress?

[crash900s]

I do wish they had granted Aptera a loan. I wanted one of those even if were downgraded to motorcycle classification like the Zap Alias. I also want one of those but prefer the Aptera. I wouldn't drive any of the X-prize winners except maybe x-tracer and that literally is just a motorcycle.

[balthazar]

TERM LIMITS.

I am the 99%.... FED UP with subsidizing Big Gov't.

[riviera74]

They could just cancel and defund the program entirely, but that would require taking action rather than complaining all the time. The only thing worse are the tax breaks for non-conventional vehicles, which should also be repealed for the same reasons: waste of taxpayer dollars and an excessive distortion of the auto markets.