- Oct 27, 2010
Chrysler next to get billions in federal technology loans?
Chrysler Pentastar V6 engine begins production – Click above for high-res image gallery
Chrysler, the recently bankrupt automaker that accepted billions in government aid last year, is reportedly next in line to receive new technology loans from the U.S. Department of Energy. Ford, Tesla, and Nissan have all applied and been approved for these technology loans that come out of a $25 billion program approved by Congress back in 2007. The federal funds are meant to be used for retooling factories, making the way for production of more fuel efficient vehicles.
Chrysler's loan request totals $10 billion, nearly twice as much as the $5.7 billion it still owes the U.S. Treasury for last year's bailout. Approval of the loan is reportedly fluid, which means that the DoE has not yet established a timeline for granting the funds, but Automotive News cites sources with financial and auto industry expertise who suggest that Chrysler's bid for aid will receive a sign-off before similar loan requests made by General Motors. That's because GM's in the middle of prepping for its initial public stock offering next month, and approving its loan requests would only make matters more complicated.
[Source: Automotive News - sub. req.]