Loans now available to US car makers
Thursday, 6 November 2008 17:40The White House has said car makers are now able to apply for government loans from the US Energy Department to help them retool older plants and equipment to produce energy-efficient vehicles.
The Energy Department on published rules for participation in the loan program last night, which now allows automakers to apply for financing, the White House said.
'Automakers are dealing with a very challenging economy, including new regulations, and changing preferences of consumers in response to fuel prices,' White House spokesman Tony Fratto said.
'So, we encourage the automakers and other eligible companies to file their applications to obtain loans for qualifying projects so they can produce more fuel-efficient vehicles, which consumers are demanding.'
Congress last month approved $25 billion in low-interest loans to automakers to help them meet new federal fuel-efficiency requirements. Automakers had sought faster aid because setting up the loans was taking time.
'If Congress intends to provide funding for purposes other than the Advanced Technology loans, we would need to hear their ideas,' Fratto said.
'We'll listen if they have ideas on how they would intend to accelerate the availability of funds they have already appropriated -- as long as those funds continue to go only to viable firms. And, of course we would insist on protecting the taxpayer,' he said.
