GM and Chrysler, because of the Treasury rejection of their viability plans, probably won't be eligible to receive any of the $25 billion in loans set aside to retool or build up their fuel efficiency fleets and factories. The loans were set up by the Bush administration and are being handled by the Dept of Energy.
GM has applied for $10.3 million (including a $2.6 billion request to help out with the Volt just last week), while Chrysler put in $6 billion in requests. A total of $44.6 billion in requests have been made against the $25 billion put aside. If GM and Chrysler can't get at the money, that's probably good news for other car makers like Ford, battery manufactures like A123, and Tesla who are trying to get a low interest loan from the government.
Source: GM, Chrysler can't tap into retooling loans | Freep.com | Detroit Free Press
It's possible GM and Chrysler, if the Treasury turns around and deems them viable, could get the loans later on.
Wednesday, April 08, 2009
GM and Chrysler Not Likely to Qualify for DOE Loans
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