While the “big three” in the US automotive industry - Ford, Chrysler and General Motors - plead their case to Congress for a $25billion federal aid package, a number of smaller companies have set their sights on a slice of a golden… but green… pie of their own.
The Department of Energy has already set up a $25billion loan programme to speed up the development of green cars and many companies are competing hastily to grab their share of the cash. Earlier this week they flocked to Washington for a meeting sponsored by the Energy Department to review rules governing the direct loans.
The Energy Department rules favour domestic car manufacturers and suppliers with preference also given to modernisation of manufacturing plants that are more than 20 years old. It is aimed at supporting the development of cars at least 25 per cent more fuel efficient than those made in 2005.
Tesla Motors has applied for $400million in two loans - one to be used to develop an advanced battery and power train for the company’s electric car, and the other to develop a lower-priced midsize saloon version of the Model S.
XP Vehicles, based in San Francisco, has also put in a bid for $40million to develop two electric cars - one a two-seat runabout and the other a four-seat mini utility vehicle.
Of course the Detroit automakers want their share too - and it is believed they have applied for at least $22billion of the programme’s money. The deadline for the first group of loan applications is December 31.
Here at thegreencarwebsite.co.uk we’d like to know how you think the money should be distributed. Should the large companies dominate or should smaller companies receive the bulk of the support? Which projects do you think should be supported? Leave a comment with your thoughts.
