Auto industry seeks loans to boost OEM business
The automotive industry is pushing for up to $50 billion in government loans to help OEMs modernize their plants and build more fuel-efficient vehicles. The energy bill passed in 2007 allocated $25 billion in loans to help companies build more efficient cars, but now industry supporters hope to expand the funding to $50 billion in over three years, according to the Associated Press. The plan would allocate $25 billion in loans the first year, $15 billion in the second and $10 billion in the third. The low-interest loans would have rates of about 4 to 5 percent and would finance about 30 percent of plant upgrades needed to build hybrids, plug-in vehicles, electric cars and other technology. The funding would be available to foreign automakers, but they are typically in better financial situations and would not be given priority over older, worse off companies. |
