Autoblog

DOE rejects $310M loan for Carbon Motors to build advanced police cars

Autoblog Staff — Thu, 08 Mar 2012 10:57:00 EST

Filed under: Sedan, Government/Legal, Police/Emergency

Carbon Motors, maker of the purpose-built E7 police car, won't receive the $310 million in U.S. Department of Energy (DOE) loans under the Advanced Technology Vehicle Manufacturing (ATVM) program that it applied for almost three years ago, and said that it's a victim of politics.

"We are outraged by the actions of the DOE and it is clear that this was a political decision in a highly-charged, election year environment," Carbon Motors William Santana Li said in a statement. The company added that it was "actively examining its strategic and financing alternatives."

Carbon Motors says its vehicles will save government entities money because they get better fuel economy and they're purpose-built, meaning that factory vehicles don't need to be retrofitted. Carbon Motors has said its diesel-powered cars may cut law-enforcement fuel use and greenhouse-gas emissions by as much as 40 percent, and that building such cars may create as many as 10,000 jobs. The car was to feature a BMW 3.0-liter turbodiesel engine.

The company says it's received about $200 million worth of financial commitments from private and public sources and has taken orders from more than 500 law-enforcement agencies for more than 20,000 cars.

Last December, the company sent an open letter urging the Obama Administration to push the DOE to approve the loan.

The federal loan process has vexed other automotive companies. Bright Automotive, which was to make extended-range plug-in utility vehicles, publicly pleaded with the government to process its application for a $400 million loan in January. Last month, that company went out of business.

Meanwhile, Fisker Automotive, maker of the extended-range plug-in sports sedan Karma, has been fielding questions about its future after the company in early February laid off workers. Fisker has received less than $200 million of the $529 million loan it was slated to get from the DOE.

Continue reading DOE rejects $310M loan for Carbon Motors to build advanced police cars

DOE rejects $310M loan for Carbon Motors to build advanced police cars originally appeared on Autoblog on Thu, 08 Mar 2012 10:57:00 EST. Please see our terms for use of feeds.

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Analyst predicts Fisker's demise; spokesman says that's premature

Autoblog Staff — Sun, 19 Feb 2012 14:04:00 EST

Filed under: Hybrid, Sedan, Government/Legal, Earnings/Financials, Rumormill, Fisker, Electric

Hiccup or death knell?

That's what watchers of California-based automaker Fisker Automotive are trying to figure out after the maker of the Karma plug-in luxury sedan laid off about 65 workers and contractors in Delaware and California while renegotiating loan details with the U.S. Department of Energy. Fisker, which was to receive a $529 million loan from the DOE, has received less than $200 million of that, with the fate of the balance in question because Fisker has not met certain loan conditions due to production delays.

Here's the death knell perspective: With the Obama Administration under political pressure to reduce spending, Fisker is unlikely to receive the remaining $336 million, Wunderlich Securities analyst Theodore O'Neill said in an interview with the Boston Globe. Without that funding, Fisker will go out of business, O'Neill said, adding that A123 Systems, which makes lithium-ion batteries for Fisker, will also likely go under.

But no, say others, the problem is temporary. Investment advice site Seeking Alpha, for example, says A123 is a "buy." Fisker also downplayed the issue, with its spokesman, Roger Ormisher, calling the shutdown a "bump in the road" in an interview with The Wall Street Journal. Ormisher said production of the Karma hasn't been impacted, nothing that Fisker has delivered about 250 vehicles, and that the remaining DOE funds are to be used purely for the lower-priced Fisker Nina vehicle.

Fisker said in a statement last week that the company, which most recently received cash from the loan last May, is in talks with the DOE and raised $260 million in equity in late 2011. Fisker is pursuing "alternative funding sources," the company said in a Feb. 6 statement.

Additionally, the Orange County Register reported last week that a Fisker investor is suing the company for fraud. The plaintiff, Daniel Wray, invested $210,000 in Fisker and said the company informed him in January that he had to invest another $84,000 or risk losing the rights he gained with the original stock purchase. Ormisher told the newspaper at the time that he wasn't aware of the lawsuit.

Analyst predicts Fisker's demise; spokesman says that's premature originally appeared on Autoblog on Sun, 19 Feb 2012 14:04:00 EST. Please see our terms for use of feeds.

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Chrysler abandons plan seeking more federal loans

Zach Bowman — Fri, 17 Feb 2012 09:28:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

The Detroit News reports Chrysler is walking away from the company's pursuit of low-interest Department of Energy loans. The automaker originally applied for an $8.55 billion loan when it was still under Cerberus Capital Management, though the figure had since shrunk to $3.5 billion. The DOE, meanwhile, said it was considering a much smaller $2 billion loan with additional restrictions than were previously negotiated. The loan period would also be significantly shorter. Chrysler had sought the funds as a way to reduce the company's interest payments, which would have dropped by nearly 5 percentage points had the deal gone through.

Instead, Chrysler will use its own funds for capital improvements. The report says the company has nearly $11 billion in liquidity, though that figure includes $1.3 billion in an undrawn private loan.

Chrysler isn't the only automaker to walk away from DOE loans. General Motors pulled its application for a $14.4 billion loan last January. The funds would have gone toward retooling. The DOE and the Obama Administration have been hesitant to hand out more government money after the solar panel company Solyndra LLC received around $528 million loans before going bankrupt.

Chrysler abandons plan seeking more federal loans originally appeared on Autoblog on Fri, 17 Feb 2012 09:28:00 EST. Please see our terms for use of feeds.

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Report: Feds delay auto-tech loans

Jeff Glucker — Thu, 27 Jan 2011 10:29:00 EST

Filed under: Government/Legal, Ford, Nissan, Fisker, Tesla

The Department of Energy began its Advanced Technology Vehicle Manufacturing Loan program in September of 2008. Over 100 companies applied with monetary requests totaling $42.7 billion. The DOE has $25 billion to provide, and so far it's only handed out $8.5 billion. This is bad news for quite a few companies that were looking forward to receiving a helping hand. Of the 100 applicants, just four have completed the process and received funds.

Ford, Nissan, Tesla and Fisker have closed on their loans while a fifth company, Vehicle Production Group LLC, has been awarded funds but the deal has not yet closed. What's the holdup? That's the question many of the applicants and members of congress are asking.

The DOE has fallen behind schedule on the loan review process, term negotiations and seemingly all other steps involved. Also, due to rising costs involved with the program, it appears that the entire $25 billion will not be doled out. There may be just $10 billion left.

Some companies are still hoping for good news, like electric-vehicle builder Zap. Others, such as automotive parts supplier Tenneco, were approved but have yet to see a dime and have given up waiting.

[Source: Detroit News - sub. req.]

Report: Feds delay auto-tech loans originally appeared on Autoblog on Thu, 27 Jan 2011 10:29:00 EST. Please see our terms for use of feeds.

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Chrysler next to get billions in federal technology loans?

Autoblog Staff — Wed, 27 Oct 2010 11:32:00 EST

Filed under: Government/Legal, Plants/Manufacturing, Chrysler

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.

Gallery: Chrysler Pentastar V6 enters production

[Source: Automotive News - sub. req.]

Chrysler next to get billions in federal technology loans? originally appeared on Autoblog on Wed, 27 Oct 2010 11:32:00 EST. Please see our terms for use of feeds.

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DC 2010: DOE Secretary Chu announces closing of Nissan's $1.4 billion loan for Leaf electric vehicle

Sebastian Blanco — Thu, 28 Jan 2010 17:43:00 EST

Filed under: Government/Legal, Nissan, Electric

Department of Energy Secretary Chu announced the closing of Nissan's $1.4 billion Advanced Technology Vehicle Loan Program loan (originally, the amount was for $1.6 billion) today during the Washington Auto Show. As expected, this money will used to kick off production of the Leaf in the U.S.

While the news, such as it is, is about the all-electric Leaf and the 1,300 jobs this loan is expected to create in Smyrna, TN, Chu's speech touched on all sorts of advanced vehicle technologies, from cleaner gasoline engines to biofuels. Chu's statement about hydrogen, which part of the DOE's $13 billion advanced vehicle technology budget, was "longer in the distance, but we're still in there."

While discussing some of the other projects the DOE is funding, Chu somewhat surprisingly called the Fisker Karma "not a high-end cost vehicle," depending on who you are, and said that the Chevrolet Volt and the Tesla Model S were examples of "strong electric vehicle projects." Full details in the press release after the jump.

Continue reading DC 2010: DOE Secretary Chu announces closing of Nissan's $1.4 billion loan for Leaf electric vehicle

DC 2010: DOE Secretary Chu announces closing of Nissan's $1.4 billion loan for Leaf electric vehicle originally appeared on Autoblog on Thu, 28 Jan 2010 17:43:00 EST. Please see our terms for use of feeds.

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Congress approves three-wheelers for DOE funds

Jeremy Korzeniewski — Sun, 18 Oct 2009 16:29:00 EST

Filed under: Government/Legal

Aptera 2e final design rendering - Click above to enlarge

Following months of debate, Congress has approved a bill that will pave the way for three-wheeled vehicle manufacturers like Aptera to qualify for funding from the Department of Energy. Next step: President Obama's desk, and the Commander-in-Chief is reportedly expected to sign the bill into law in short order. Rep. Brian Bilbray, a Republican from California who co-sponsored the bill, says:

This is a huge win for scientific innovation and the environment. We need more innovation and less regulation when it comes to promoting new ways to save energy while saving money at the pump.

Indeed, three-wheeled vehicle platforms sometimes have the potential to use less energy to operate than their four-wheeled siblings, though some still question the inherent safety of such designs. Assuming the bill passes the President's desk, any manufacturer of enclosed three-wheeled vehicles that can carry at least two adults while returning at least 75 miles per gallon will be eligible for funding, though the DOE will still approve applications on a case-by-case basis.

Gallery: Aptera

[Source: Automotive News, sub. req'd]

Congress approves three-wheelers for DOE funds originally appeared on Autoblog on Sun, 18 Oct 2009 16:29:00 EST. Please see our terms for use of feeds.

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Ford, Nissan, Tesla all big winners in DoE advanced technology loans

Sam Abuelsamid — Tue, 23 Jun 2009 13:29:00 EST

Filed under: Budget, Hybrid, Government/Legal, Green, Plants/Manufacturing, Technology, Ford, Nissan

Ford Focus EV Mule - Click above for high-res gallery

The U.S. Department of Energy has finally announced the first recipient of low interest loans under its Advanced Technology Vehicle Manufacturing Incentive Program. The first recipient is Ford, and analysts believe the DoE will award sums to Nissan and Tesla Motors, as well. Ford applied for up to $11 billion in loans, but instead it was awarded $5.9 billion in financing. The Dearborn-based automaker will use the money to fund its electric vehicle program that will launch a battery-powered version of the Transit Connect in 2010, and it will also likely use the capital to help pay for the $550 million renovation of its Wayne, MI sport-utility plant to build the next-generation Focus in both internal combustion and electric flavors.

For its part, Nissan wants to add production of its upcoming electric car and lithium ion batteries at its assembly complex in Smyrna, Tennessee, and it will receive $1.6 billion.

Despite receiving the smallest sum of the three automakers, Tesla is arguably the biggest winner this round, as the $465 million it may receive will allow the fledgeling EV maker to proceed with completing development and production of its Model S sedan. Recent investment in the company by Daimler was probably a big help in getting the loan approved, as companies had to demonstrate viability. And since the ATVM program favors re-tooling of older existing plants, Tesla will probably look at acquiring a closed factory from another company. Recent rumors had the company possibly getting a former McDonnell-Douglas factory in Long Beach, although there are plenty of other properties available.

The current Chapter 11 bankruptcy proceedings at General Motors and Chrysler made those companies ineligible in the current round. It's not known if any announcements will be made about loans for battery makers like A123 or EnerDel.

Gallery: ABG Quick Drive: Ford Focus EV mule

Photos Copyright (C)2009 Sam Abuelsamid / Weblogs, Inc.

[Source: Automotive News, sub. req'd]

Ford, Nissan, Tesla all big winners in DoE advanced technology loans originally appeared on Autoblog on Tue, 23 Jun 2009 13:29:00 EST. Please see our terms for use of feeds.

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REPORT: Nissan considering building EVs and batteries in the U.S.

Sam Abuelsamid — Mon, 22 Jun 2009 08:31:00 EST

Filed under: Hybrid, Green, Nissan

Nissan EV-02 prototype - click above for high res image gallery

Earlier this year, Nissan applied for low interest loans under the Department of Energy Advanced Technology Vehicle Manufacturing Incentive Program. In order to qualify for those loans, Nissan would have to use the government funds to build something "green" in the U.S., and it appears that if Nissan gets the loan it plans to build electric vehicles at its Smyrna, Tennessee assembly plant. The line, which is expected to have a capacity of 50-100,000 units annually, could be up and running by 2012.

Automotive Energy Supply Company, the Nissan-NEC battery joint venture, also plans to set up shop in Smyrna. Initial production of both batteries and electric cars will start in Japan in 2010. Reuters is reporting that Nissan is expecting to get approval for a loan of $1 billion for the assembly and battery projects.

Gallery: Quick Drive: Nissan EV-02 prototype

[Source: Reuters]
Photos Copyright (C)2009 Sam Abuelsamid / Weblogs, Inc.

REPORT: Nissan considering building EVs and batteries in the U.S. originally appeared on Autoblog on Mon, 22 Jun 2009 08:31:00 EST. Please see our terms for use of feeds.

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U.S. Department of Energy funding for Chevy Volt on hold

Jonathon Ramsey — Mon, 13 Apr 2009 07:59:00 EST

Filed under: Budget, Hybrid, Government/Legal, Green, Chevrolet, GM, Earnings/Financials

Aside from the bridge loans supplied to GM by the federal government, GM had applied for $10.3 billion from the Energy Department. Of that amount, $2.6 billion was meant to be devoted to building the Chevy Volt and two derivatives of it, as well as a third hybrid model. May is when the Energy Department will begin approving those loan requests.

But because the company itself hasn't passed the financial viability test in order to simply survive, the administration has put GM's $10.3 billion request on hold. The government deadline for GM to prove financial viability is June 1, and since it will probably take all of that time, GM can't look for any other cash assistance to continue product development until that matter is resolved.

GM says that the government decision won't stop the Volt from going on sale in November 2010. Outside analysts suspect that GM plans to pay for the Volt with money from other programs.

[Source: Automotive News - Sub. Req.]

U.S. Department of Energy funding for Chevy Volt on hold originally appeared on Autoblog on Mon, 13 Apr 2009 07:59:00 EST. Please see our terms for use of feeds.

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GM asking Department of Energy for $2.6 billion to build hybrids?

Jeremy Korzeniewski — Thu, 02 Apr 2009 15:20:00 EST

Filed under: Hybrid, Government/Legal, Green, Chevrolet, GM

Click above for high-res image gallery of the 2011 Chevy Volt

General Motors released an updated business plan to Congress on Wednesday, and one of the main points of interest surrounds the automaker's request of an additional $2.6 billion for the production of the Chevrolet Volt and two additional variants based on the same Voltec powertrain architecture.

The report doesn't spell out what the two new Volt-like models would be, but there's speculation a production model based on the Cadillac Converj concept (possibly as a 4-door sedan) might be in the works. Offering the Volt's high-tech and expensive powertrain at a Caddy-level price point makes plenty of sense as it would allow GM to subsidize the cost of its development and lower the price of production.

These funds would reportedly come from the Department of Energy's $25 billion Advanced Technology Vehicle Manufacturing Program and is separate from - and in addition to - the ongoing negotiations for bailout funds between General Motors, Chrysler and the U.S. government. The total amount GM has requested under the D.O.E. program now stands at $10.3 billion.

Gallery: 2011 Chevrolet Volt

[Source: Reuters]

GM asking Department of Energy for $2.6 billion to build hybrids? originally appeared on Autoblog on Thu, 02 Apr 2009 15:20:00 EST. Please see our terms for use of feeds.

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Tesla to unveil Model S on March 26, hopes for DOE money by summer

Sam Abuelsamid — Wed, 11 Feb 2009 15:27:00 EST

Filed under: Green

In a newsletter distributed today by Tesla Motors, CEO Elon Musk provides an update on the business including an announcement that a driveable prototype of the Model S would be unveiled on March 26. The Model S reveal will take place at the Southern California headquarters of Musk's other company, Space-X, which is where Tesla's design studio is located. According to ex-Tesla SVP Darryl Siry who refused to show us images of the car no matter how much we begged before his departure, "the Model S a very beautiful car." As long as it doesn't have a hump back like the new Porsche Panamera we're looking forward to seeing it.

However, before it becomes anything more than a prototype, Tesla will need a lot more cash to pay for engineering and a factory to build it. As Musk told us when we talked to him in Detroit last month, he fully expects the company to be profitable by mid-year thanks to price increases and cost reductions for building the Roadster. Even if that proves to be true, which will be difficult when considering the current economy, it's unlikely to be anywhere near the required cash flow to cover the cost of the Model S. Learn more about how Tesla hopes to fund the Model S after the jump where you can also see the full text of the newsletter.

[Source: Tesla Motors]

Continue reading Tesla to unveil Model S on March 26, hopes for DOE money by summer

Tesla to unveil Model S on March 26, hopes for DOE money by summer originally appeared on Autoblog on Wed, 11 Feb 2009 15:27:00 EST. Please see our terms for use of feeds.

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Nissan seeks U.S. loans to develop electric vehicles

Jeremy Korzeniewski — Tue, 10 Feb 2009 11:32:00 EST

Filed under: Hybrid, Government/Legal, Green, Nissan, Earnings/Financials

Nissan is the first Japanese automaker to confirm that it has asked for funds from the U.S. Department of Energy. The amount of the request is not yet known, but it would be used to upgrade Nissan's assembly plant in Smyrna, TN and would ostensibly be used to develop electric cars and the batteries that power them. Nissan's longstanding goal is to introduce fully electric vehicles to the American market in 2010. The other two big Japanese automakers, Toyota and Honda, say that they have not sought DOE funds.

For the first time in nine years, Nissan is expected to post an annual loss, and it's a biggie. Early estimates place the shortfall at about $2.9 billion, and the Japanese automaker has responded by announcing job cuts totaling 20,000 workers.

According to the Energy Department, 75 applications for funding from the Advanced Technology Vehicles Manufacturing Incentive Program have come in and 26 of those, including the one from Nissan, have moved passed the initial screening process. The Detroit 3 have each submitted proposals that total about $22 billion in financing combined.

[Source: Reuters | Image: Akihiro I/Getty]

Nissan seeks U.S. loans to develop electric vehicles originally appeared on Autoblog on Tue, 10 Feb 2009 11:32:00 EST. Please see our terms for use of feeds.

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