Published on May 13th, 2013 | by Nicholas Brown4
DOE Loan Rules Tightened After Fisker Failures
The Department of Energy’s loan program for the advancement of vehicle technology underwent some significant changes following Fisker Automotive’s financial problems. The Feds decided to tighten restrictions and hopefully mitigate wasteful spending, though that has done nothing to cull critics of the green energy loan program.
The United States DOE (Department of Energy) has been accused by some of frivolously giving money away to every alternative energy company that applies for financial aid, as part of its Advanced Technology Vehicle Manufacturing (ATVM) Program. That is far from true however, as companies like Carbon Motors and Bright Automotive both failed to secure government funding for their respective green car projects.
Documents released by a House committee suggest that Fisker Automotive’s financial problems were directly associated with the shut down of the Advanced Technology Vehicle Manufacturing Program. Last year the Feds cut off Fisker’s loan access after the company failed to deliver enough Fisker Karmas in the allotted time frame.
Unfortunately, Fisker may have ruined the program for everyone. Despite the success of Tesla Motors, which also received a DOE loan, the Department of Energy said that they have no plans to award the remaining $16.4 billion stockpiled for the Advanced Technology Vehicle Manufacturing Program to anyone. And can anyone blame them? After all the political sniping and companies like Fisker folding, the DOE is understandably skittish about awarding anymore loans. That means new upstarts are on their own when it comes to securing funding.
Is this a good development for the government, or a bad development for green automakers? Guess it depends on how you look at it.
Source: The Detroit News