According to a Reuters report, Rep Mike Rogers (R) of Michigan is looking to offer a $20 billion loan to automakers (i.e GM, Ford and Chrysler) to develop alternative fuels, hybrids and other energy saving technologies.
With the big 3 automakers hemorrhaging money, they have been cutting back on production, cutting back on jobs, and losing market share to Toyota in sales. The US automakers have focused on trucks and SUV sales in the past decade and have suffered when consumers began switching to smaller vehicles with better mileage (and better quality reputations).
In order to qualify for the loans, foreing carmakers would need to open research and development operations into the US. Under the loan guarantee, the government backs the majority of financing from banks and private sector lenders.
Thursday, September 21, 2006
$20 billion in loans to help research hybrids and alternative fuels
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