xcel
09-20-2006, 06:40 PM
$20 billion initiative could speed research and development of hybrid technology, clean diesel, hydrogen, and flexible fuel alternatives. (http://news.yahoo.com/s/nm/20060920/pl_nm/autos_congress_dc_1)
John Crawley - Reuter’s - Sept. 20, 2006
http://www.cleanmpg.com/photos/data/501/GM_F_DCC.jpg
GM, Ford, and Chrysler could receive $Billion’s in US loan guarantees.
WASHINGTON - A proposal to offer up to $20 billion in U.S. loan guarantees to automakers to develop alternative fuels, hybrids and other energy saving technologies is expected to be introduced in Congress next week.
The plan by Rep. Mike Rogers, a Michigan Republican, is specifically aimed at struggling Big Three domestic vehicle manufacturers - General Motors Corp., Ford Motor Co. and DaimlerChrysler's U.S. unit, Chrysler Group.
It is the first large-scale government proposal designed to help Detroit's auto sector since its financial troubles became more acute this year.
The auto giants are wrestling with declining market share and crippling health care and pension costs. GM and Ford are closing plants and eliminating tens of thousands of jobs. Chrysler Group said this week it would slash production due to a glut of unsold vehicles.
Rogers hopes his $20 billion initiative can speed research and development of gasoline-electric hybrid technology, clean diesel, hydrogen, and flexible fuel alternatives.
Developing and mass producing fuels like gasoline-ethonol blends has become a prominent consumer and political issue with gasoline prices high and sales of big trucks and SUVs - the lifeline Detroit automakers - on the wane.
Rogers hopes to gain congressional backing this year, said spokeswoman Sylvia Warner. But time is short with lawmakers set to leave by the end of the month to campaign for November elections.
"One of the major stumbling blocks for (U.S.-based automakers) is their need to be able to get cheap capital so they can do the things they need to do to retool and move forward on new technology," said Warner.
Ford said it has already been talking to the Energy Department about its loan guarantee program that could be applied to alternative fuels development and plant retooling.
GM spokesman Greg Martin called Rogers' loan guarantee plan that would also be administered by the Energy Department an "intriguing idea" that merits "serious consideration."
The option would also be open to foreign manufacturers, but those companies would have to move their research and development operations to the United States to qualify.
Under a loan guarantee, the government backs the majority of financing from banks and other private sector lenders. A similar program bailed out Chrysler in 1980.
John Crawley - Reuter’s - Sept. 20, 2006
http://www.cleanmpg.com/photos/data/501/GM_F_DCC.jpg
GM, Ford, and Chrysler could receive $Billion’s in US loan guarantees.
WASHINGTON - A proposal to offer up to $20 billion in U.S. loan guarantees to automakers to develop alternative fuels, hybrids and other energy saving technologies is expected to be introduced in Congress next week.
The plan by Rep. Mike Rogers, a Michigan Republican, is specifically aimed at struggling Big Three domestic vehicle manufacturers - General Motors Corp., Ford Motor Co. and DaimlerChrysler's U.S. unit, Chrysler Group.
It is the first large-scale government proposal designed to help Detroit's auto sector since its financial troubles became more acute this year.
The auto giants are wrestling with declining market share and crippling health care and pension costs. GM and Ford are closing plants and eliminating tens of thousands of jobs. Chrysler Group said this week it would slash production due to a glut of unsold vehicles.
Rogers hopes his $20 billion initiative can speed research and development of gasoline-electric hybrid technology, clean diesel, hydrogen, and flexible fuel alternatives.
Developing and mass producing fuels like gasoline-ethonol blends has become a prominent consumer and political issue with gasoline prices high and sales of big trucks and SUVs - the lifeline Detroit automakers - on the wane.
Rogers hopes to gain congressional backing this year, said spokeswoman Sylvia Warner. But time is short with lawmakers set to leave by the end of the month to campaign for November elections.
"One of the major stumbling blocks for (U.S.-based automakers) is their need to be able to get cheap capital so they can do the things they need to do to retool and move forward on new technology," said Warner.
Ford said it has already been talking to the Energy Department about its loan guarantee program that could be applied to alternative fuels development and plant retooling.
GM spokesman Greg Martin called Rogers' loan guarantee plan that would also be administered by the Energy Department an "intriguing idea" that merits "serious consideration."
The option would also be open to foreign manufacturers, but those companies would have to move their research and development operations to the United States to qualify.
Under a loan guarantee, the government backs the majority of financing from banks and other private sector lenders. A similar program bailed out Chrysler in 1980.