Senator Aims to Halt Alternative Vehicle Loan
As the United States Energy Department gears up to reinstate its advanced technology vehicles manufacturing (ATVM) loan program—the same one that backed electric car powerhouse Tesla—a prominent government figure has voiced his opposition.
The program, which is currently limited to light passenger vehicle manufacturers, aims to dish out $25 billion of dollars to automotive manufacturers in order to promote fuel-efficient technology development.
But Republican senator John Thune is opposed with the program as it would represent an expensive gamble for American taxpayers. He proposed that the government should do away with the program altogether.
The program was created by Congress in 2007 but no loans have been made since March of 2011. Out of the original $25 billion, the program still has around $16 billion left to spend, although the agency is thinking about revising the lending conditions of the program and accepting a new round of loan requests.
What drew the senator’s attention was that out of the five companies that received funds, two have already stopped production. Fisker, one of those companies, declared bankruptcy in July of 2012, leaving its $168 million loan to be put up for auction.
Thune said that his amendment to the program would “permanently end the ATVM program and save taxpayers from paying for more of President Obama’s bad green-energy bets.”
While Thune is against the program, other government figures have shown support.
“This program has helped American companies retool their plants to create new high-tech products and new American jobs, including helping companies bring jobs back from Mexico,” said Senator Debbie Stabenow, a Democrat from Michigan who introduced the legislation alongside Ron Wyden, the Democratic chairman of the Senate energy committee.
