US Bill Would Give More Loans To Car Makers To Retool Plants
05 Mai 2009 - 6:40PM
Dow Jones News
U.S. lawmakers from Michigan have introduced legislation to
expand a government loan program to help auto makers rebuild plants
to make fuel-efficient vehicles.
The bill would make available $50 billion in low-cost loans to
auto makers, doubling the current funding level for the Energy
Department program. The bill was introduced by a bipartisan group
of 29 U.S. House members, nearly half of them from Michigan, where
auto makers such as General Motors Corp. (GM) and Ford Motor Co.(F)
plan to use the money to speed the development of
advanced-technology vehicles like GM's electric car, the Chevrolet
Volt.
President Barack Obama has previously called for doubling the
amount of funds available under the program.
"It is vital that the federal government be a full partner to
the domestic auto industry's efforts to build the cars of the
future," Rep. Sandy Levin, D-Mich., said in a statement
Tuesday.
Levin pointed out the Energy Department has received
applications for more funds than are currently available in the
program, and added, "We need to move quickly to ensure that all
eligible investments are able to participate."
The loan program was authorized in a 2007 energy bill that ramps
up fuel-efficiency standards for cars and light-trucks. Auto makers
seeking the funds must produce plans for the production of
fuel-efficient vehicles and meet other requirements.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com