USA Alt Fuel Auto Loans Resume
SEE ALSO: Electric Vehicles Solution or Diversion?
U.S. to Revive $25 Billion Auto Loan Program
Washington DC August 27, 2013; AIADA reported that according to Bloomberg News a U.S. alternative-vehicle loan program criticized by Republican lawmakers for financing two failed startups will resume marketing to industry groups and possible applicants, an Energy Department spokeswoman said yesterday.
The $25 billion Advanced Technology Vehicle Manufacturing loan program has about 60 percent of its funding remaining and is open after making no loans since 2011. Congress held a hearing in April to look into the default of Fisker Automotive Inc., which drew $193 million from its $529 million loan before ceasing production last year.
"At worst, the program threw good taxpayer money after bad," Representative Darrell Issa, the California Republican who heads the House Committee on Oversight and Government Reform, said in a statement.
"At best, it has risked Americans' hard-earned money on projects that didn't need it or didn't truly advance vehicle technology."
While backing Fisker and wheelchair vanmaker Vehicle Production Group LLC, which defaulted on its $50 million loan in May, the program also financed Tesla Motors Inc., which in May repaid its $465 million loan in full nine years early. Ford Motor Co. and Nissan Motor Co. received the other two loans and have been making payments.
For more on the loan program, click here.