Archive for the ‘loans’ Category

Just last week, General Motors announced plans to speed up repayment of billions in loans from the U.S. government. Technically, the company's fast-track, $1 billion-per-quarter payback schedule doesn't kick in until December, but GM is getting a head start on things by returning $140 million right now. The cash comes from a $2.5 billion loan GM was given to pay suppliers, though we're not entirely sure how much of that -- if any -- is included in the $6.7 billion GM owes the U.S. government. GM credits the repayment to shrinking demand from suppliers and the company's improved bottom line. For us, however, the bottom line is that the...

Since June of this year, the Department of Energy's Advanced Technology Vehicle program has awarded low-interest loans to encourage the development of next-gen cars. Ford, Nissan, Tesla, and Fisker got in on the action, but one outside-the-box company has been left on the sidelines: Aptera. The company's 2e model has been legally classified as a motorcycle, so Aptera hasn't been eligible for the program, but that'll change with Congress' redefining of the term "automobile". (Hint: if it's enclosed, seats two, and gets 75 mpg, it's in the ballpark.) John Voelcker has the full story at GreenCarReports.com.

In a result that surprises no one but ought to shock us all, a congressional panel has released findings that tens of billions of dollars of the U.S. government's bailout of the auto industry won't be repaid.

The report, undertaken by the Congressional Oversight Panel, says that about $5.4 billion of the money borrowed by Chrysler won't be repaid, and it is "highly unlikely" that the government's 61% stake in General Motors will fully repay the $50 billion in funds the company received.

Not all of the money has disappeared, however. Chrysler is good for just over $5 billion of the funds lent, and as long as GM's stock improves in value,...