After unwinding their Advanced Technology Vehicle Manufacturing loan program in 2011, the Department of Energy is bringing it back. According to The Detroit News, the focus of this round will be on suppliers, as well as lightweight vehicle technology.
Despite the stated focus on suppliers, the timing of the announcement comes as FCA CEO Sergio Marchionne raised the idea of an aluminum Jeep Wrangler as a way of helping the venerable SUV meet increasing fuel economy standards – while also claiming that retrofitting the Toledo, Ohio assembly plant for aluminum construction would be far too expensive.
With roughly $16 billion in unused funds, the ATVM program has plenty of cash to spare to help re-tool Toledo – or any number of facilities. But you can bet that Marchionne, shrewd operator that he is, will use the threat of pulling production from Toledo to leverage some funds from the program – if he's not already using that as a scare tactic in upcoming negotiations with the UAW.
The post DOE Revives Loan Scheme For Auto Makers appeared first on The Truth About Cars.
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